Buying A Vacation Home

Buying a second home in florida 2011.

There was a time when real estate was seen as the best investment you could make. Sadly, this was due to the artificial bubble created by lending corporations giving out mortgages to people that couldn’t afford them. Demand for houses went way up and so did the prices. If you bought low and sold high during the craze you came out on top. If you held onto your house hoping the market would go even higher you got screwed. Now you can’t really capitalize on that but there’s still plenty of room for investing in real estate.

What if you purchased a vacation home before buying your first home? Rent an apartment and then buy a vacation home somewhere you love. You can spend a couple of weeks in that home every year and the rest of the time you can rent it out, which is the real key. The rental money will pay your mortgage if everything goes well so your home ends up being free of charge. Plus, the more equity you build up by paying that mortgage the more you can make on the house if you ever way to sell it. If you’re not putting anything into it but you’re building equity anyway it’s the greatest investment you’ll ever make.

The big question is where you should buy this second home and what sort of home should it be. To the second point, your choices are essentially a house or a condo. The house is a little more difficult because it requires constant maintenance for the yard, etc. If you buy a condo then you’re usually paying a monthly fee for someone else to take care of everything, which is really handy. If you buy a house and you’ve only spending a few weeks there you’re probably hiring a management company to look over and they’ll do almost everything for you so in the end the maintenance thing might be a wash. It’s something to look into, though.

The most important question is location. Ideally, you’ll buy a place at your favorite vacation location. However, that might not be wise if your favorite location isn’t a favorite spot for tourists. If you’re planning on renting the place you’ll need demand. I have a few spots that I think are good choices. I’ll point out a few and if you’ve never been on vacation there you might want to consider a trip to see what these locales are like.

If you’re a high end purchaser you can consider the coast of Italy. The Amalfi Coast is the most popular and expensive area on the Italian coast and if you can afford it you should go ahead and purchase because demand is sky high. The weather is almost always great and just about every house there has a stunning view thanks to the way the coastline slopes. It’s truly impressive stuff. If you’re into fixing up houses you can find something that’s been abandoned or rundown and you can apply the magic touches to get it back to a valuable place.

Hawaii might seem like an overdone kind of spot but there’s a reason it’s so popular. If you want to buy a vacation home that has all the comforts of America then you can’t go wrong with the Hawaiian Islands. If you like the city then check out Oahu where you can purchase a place in Honolulu or the surrounding suburbs or you can go to the North Shore and try something a little more remote. Try Kauai for a house in the lushest garden setting you’ll find in the US. The Big Island has far more space so you can really find privacy. All of Hawaii is popular with tourists so you’ll have little trouble renting your place out.

How about Mexico? I know the country south of the United States has gotten lots of bad press lately because of all the drug murders but it’s a little overblown. Yeah, it’s a bad, bad thing but there are also lots of places in Mexico that are completely untouched by the drug problems. Plus, if they get all that under control and you happen to have bought a place for a wicked cheap price you’ve got something you can sell for a major profit. Unlike Italy, Mexico is great if you’re looking to spend a minor amount of money because real estate is so cheap down there.

There are countless locations in the Caribbean where you can purchase a great vacation place. The rules on buying property vary from island to island so it’s hard to get specific, but if you really want to purchase you can make it happen almost anywhere. Each island has different charms and drawbacks so you’ll have to shop around for what works specifically for you. There are lots of wonderful choices though and you really can’t go wrong.

Belize is worth a look as well. It’s a popular tourist destination because English is the official language and you don’t have to deal with any messy money exchange issues. They have islands off the cost or you can buy something on the mainland. They have condos and houses and the rules for purchasing are simple. Plus, they’re working hard to make the country a tourist destination so it’s friendlier and friendlier all the time to live or vacation there.

There are a few places you’ll want to avoid and chief among them is Florida. The state is full of inventory. You can likely buy something on the cheap but there’s no guarantee the real estate market down there is ever going to bounce back and it’s tough to rent because there are so many places for folks to choose from. Dubai is pretty terrible nowadays as well, but you probably weren’t thinking about something in that area of the world, were you? Have fun in your new vacation home!

Best place to buy homes in florida. Buying a vacation home in florida 2011.