Think Before You Buy That Vacation Home...
This summer is winding down and “amazingly” you still have vacation on the brain. Whether you miss the quiet of the country, the crisp mountain air, or the lull of the ocean you still wish you were there. Maybe you have begun toying with the idea of buying that second home where you vacation. You may be surprised to realize that you are not the only one.
On the other hand, you know from your primary home's market that real estate is not the no-brainer investment it once was. Which leaves a big dilemma: Are you letting your heart run away from your head? Should you even be considering a vacation home?
Well no, unless you can accept that you are no longer going to get rich quick by buying a second home. So it is not such a good idea to buy to invest in today’s market. And it is also not a good idea to buy to own – BUY it for love, not money. Do it because it's a place you adore and will want to use for years to come. That way, even if prices dip - or plummet - you will be able to enjoy it while you wait out the fluctuations.
...but buy smart - Do not let the fresh air and margaritas kidnap your common sense. It's important to be realistic, especially in an uncertain market. First off, make sure you truly like the community. For that, there's no substitute for spending time in a prospective town. Second reality check: Can you afford this? "The basic rule of thumb is that your housing costs - including those for your primary home - should be a third of your overall income," says Jay Mastilak, a certified financial planner and senior vice president for PNC Investments. Finally make sure that you will spend enough time at the house to justify the expense.
For more information on this subject, click here, and contact Nolting Real Estate at www.noltingrealestate.com and/or 636-391-9997.
On the other hand, you know from your primary home's market that real estate is not the no-brainer investment it once was. Which leaves a big dilemma: Are you letting your heart run away from your head? Should you even be considering a vacation home?
Well no, unless you can accept that you are no longer going to get rich quick by buying a second home. So it is not such a good idea to buy to invest in today’s market. And it is also not a good idea to buy to own – BUY it for love, not money. Do it because it's a place you adore and will want to use for years to come. That way, even if prices dip - or plummet - you will be able to enjoy it while you wait out the fluctuations.
...but buy smart - Do not let the fresh air and margaritas kidnap your common sense. It's important to be realistic, especially in an uncertain market. First off, make sure you truly like the community. For that, there's no substitute for spending time in a prospective town. Second reality check: Can you afford this? "The basic rule of thumb is that your housing costs - including those for your primary home - should be a third of your overall income," says Jay Mastilak, a certified financial planner and senior vice president for PNC Investments. Finally make sure that you will spend enough time at the house to justify the expense.
For more information on this subject, click here, and contact Nolting Real Estate at www.noltingrealestate.com and/or 636-391-9997.
posted by Russell T. Nolting at
12:17 PM
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