John Bendall owner of Re/Max Classic Group offers advice on investing in a second home.

For many people the investment that they make in their primary home is the largest investment of their lives.  When making that investment it is hard to imagine doing it for a second time and buying a second home.  However Real Estate has been a historically sound investment and more and more people have discovered additional reasons to think about purchasing a second property. 

When is the right time to start thinking about purchasing a second home?  That depends largely on you motivation for purchasing a second home.  Will the second home be a rental property, a vacation home, or a temporary home for a child who is going away to college?

The National Association of Realtors reported that a record 1.07 million vacation homes were sold in 2006, a 4.7% increase over 2005.  Many people begin to consider purchasing a vacation home in the years prior to retirement.  They may choose to purchase a home that they can rent out or spend weekends or vacations at until they ultimately move there for retirement. 

Some things to consider before buying a second home include deciding if it’s actually practical.  If you plan to use the home on weekends and vacation you need to consider its proximity to your primary home and the cost of travel to get there.  Also, does your schedule allow for weekends away or time off from work to vacation at this point in your life?  If you spend a good deal of money each year to visit the same destination, then a vacation property may be a good investment.  It’s also a great way to get family members to converge on the same spot to spend some time together each year, especially if jobs and family have spread them out geographically over the years. 

If you are planning to rent a property out either for immediate profit or just for a portion of the year to recoup some of the cost you need to consider some of the potentially costs that could come up.  These may include maintenance, insurance, taxes, and utilities. 

If once you have done your research you decide that a second home is a worthwhile investment for you I can help you begin your search by finding you a reputable agent in whatever area you are looking in.  Contact me at john@bendallgroup.com to get started today!

You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.