(Published on - 7/28/2017 10:05:14 PM)
Ahh the age old question. Should you invest your hard earned money into a vacation home that you always wanted to call your own? That is a tricky question! Realty
Executives International, recently published an article called, “Is It Worth Buying a Vacation Home?” This is a very interesting brief article, because it talks about certain dilemmas that are unique to owning and renting a vacation property.
First off, if you don't have a vacation property already, with the spike in the market for homes in general, it might very difficult to find a good deal on a property. Economist Lawrence Yun said in the article, “With fewer bargain-priced properties to choose from and a growing number of traditional buyers, finding a home for vacation purposes became more difficult and less affordable last year.” This is sound advice. If you have decided that this is the investment you want to make, and have seen a good deal on that property you like, snap it up. With buying trends in the Inland Empire growing, and demand grossly outpacing supply, if you don't take advantage of that prime vacation real-estate someone else will.
Secondly, the article mentioned how there are certain disadvantages to owning a vacation property that may not fit your lifestyle or time constraints. First, as it says toward the top of the article, “[U]sing a vacation home as an investment opportunity also offers up several tax benefits, including writing off expenses in your home as business related while still having a place to stay during your own vacationing every year.”
Definitely a plus for those who want to have the property pay for itself. However, when you rent any property out, the owner is now the landlord and responsible for maintenance. As such you will have to balance whether you have the time, and the finance available to maintain your permanent residence, and the rental property.
Buying a vacation spot is very tricky. This is where as we always mention, having a real estate agent could be very influential. In particular, that local agent will be best able to tell you the values of properties in the region in the past. This is essential to determining whether that property is worth your investment objectives.
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