The phrase “buyer’s market” has probably been driven into your head by now. For those who are looking to move up to a larger home, or those on the look out for their first home, the time is right. But another market has also been blooming for those already comfortable in their current housing situation; the second home market. While the second home market has seen more highs and lows lately than the primary home market, vacation homes are a trend on the rise.
These homes, often purchased in appealing areas or destination locations, can be used as summer homes and for weekend getaways, or can even be rented out for extra income until you are ready for retirement or decide to sell. At a time when prices are low, now is the time to consider buying a vacation home an investment.
Some of the tax benefits of a second home are similar to those for a primary residence. Additionally, you will most likely obtain some substantial appreciation in the price of the vacation home as the years go by, and if you sell the home, any gain from that sale would likely qualify as a tax-favored, long-term capital gain.
However, before you jump right into purchasing a second home, there are a few key things to consider. Take a look at your finances and determine if you can afford to carry two mortgages, maintain two households, and pay the extra utilities and maintenance costs. If you plan on renting the home, consider what would happen if you were unable to find tenants for a period of time. Could you financially sustain the property? Also, look into financing requirements and options, as they often differ between second and primary properties.
If it is financially feasible, purchasing a second home is a great investment, regardless of whether you decide to use it as a family destination, rent it out, sell it down the line, settle in for retirement, or any combination of the above.
For more information on second homes, please contact RE/MAX of Boulder, Inc. at 303-449-7000, or 1-800-825-7000.
RE/MAX of Boulder, Inc. located on the corner of Canyon and Folsom, is nationally and locally recognized as one of the most successful real estate offices in the industry. Nationally, they are one of the "Top 500 Power Brokers in the United States" as listed in National Real Estate & Relocation magazine. Real Trends ranked them #1 in the Nation for Closed Sales Volume for 2010. Regionally, for the 4th year in a row, the company has been named the #1 RE/MAX office in America for Single Office Closed Volume. They can be reached at 303.449.7000 or visit http://www.BoulderCO.com. Connect with them on Facebook and Twitter, search remaxofboulder. Subscribe to their YouTube channel and see videos of all their homes for sale at http://youtube.com/remaxofboulder