Annie Blatz, RSPS, CRB, ABRM CIPS, GREEN
Cape Cod, Massachusetts
How many times have you said “This is a great time to buy. Interest rates are low, inventory is plentiful and prices are lower than they have been in years.”
In May I decided to take my own advice and buy an investment property in Florida. Although I had considered a second home in Florida several years ago, when the market changed, my discretionary money wasn’t there and my plans went on the back burner. But things have changed dramatically. Prices are unbelievable. Even after all I had read, I could scarcely believe the values compared to my own Cape Cod market. I looked at nice single family homes that were priced at one-third of what they were 5 years ago.
Part of the good news was when I learned that the equity line that I already had in place on my primary residence has a ridiculously low interest rate and I could use that to pay cash for my Florida home.
I discovered that rental rates are excellent and the monthly rent would cover my taxes, insurance, and interest on the loan – with some left to go toward the principal. My daughter is a student in graduate school in Florida and was prepared to move in as soon as I closed. So my investment would start working for me right away.
I closed on the perfect little house just 60 days after making the decision to buy.
In 4 or 5 years, my tenant/daughter may be ready to move on and I will need to reassess the investment. To sell? To rent? To retire and move in myself (it is Florida, after all)? There will be choices.
Today I feel pretty good about how I just spent my money – IT IS A GREAT TIME TO BUY A SECOND HOME. So for all you Resort and Second Home Specialists out there, consider taking your own professional advice and make an investment!