Practice What You Preach

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!

Cynthia Fauth

Cindy Fauth (CIPS, ePRO) is Director of Global Marketing & Communications for the National Association of REALTORS® Commercial & Global Services division. She joined NAR in September 2009, and lends her expertise to the promotion and growth of the Certified International Property Specialist (CIPS) designation, At Home with Diversity certification, and International REALTOR® membership, along with the many other programs NAR Commercial & Global Services offers.

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  1. Your decision is also ocurring right here in my community of Bozeman, Montana. We are a university town (Montana State University) and enjoy the nearby benefits of Big Sky & Bridger Ski Resorts, Yellowstone Park and the great hunting and fishing outdoors of the Rocky Mountains. Parents & their students “invest” in their 4 year housing residence and at the end of the 4 years realize an excellent return on their investment or realize the “vacation” or “retirement” home of their dreams. We experienced a brief hiatus from 2009-2010, but with interest rates at an all time low and other investments appearing shaky, the “second home” buyers are back!

  2. That is quite an awakening for some of us. Yeah buying a SECOND home would be one great investment. Houses on the market are selling like hot cakes!

  3. Unbelievably low priced houses are not only a good investment but could be possible income generator. This of a creative way of earning money out of it. Especially when you are strategically located near universities. Hmmm…

  4. If you just have money to spare, why not buy a second home? Houses are cheaper now. You could always make use of that investment.

  5. In these unpredictable times, one should not be too quick in her home buying decisions. You’re right, buying a second home is a good choice and this could help you in weighing things such as your mortgage issue and other rental fees. It is so good to know that you are earning something of your initial house purchase at Bel Air homes for sale. A low priced home is not that so good for investment purposes but surely, it can give you good options to extend your fund resources.

  6. The real estate market is very time dependent. Properties might be very cheap now and will suddenly increase interest rates the next month. For investors, perfect timing is everything. And now is the right time to buy and flip it when the market is in good condition.

  7. For retirees: Buying second homes in the suburbs with a wide acreage is good for farming and gardening, great hobbies for retirees.

  8. I certainly agree with Stella. Perfect timing is indeed the key to gaining positively investment wise and profit-wise when it comes to real estate. With all the recent happenings in the real estate market, yes, it is now the right time to buy homes. Those individuals and families who want to invest in Santa Clarita homes for sale should see the shining prospects right this very moment!

  9. Buying a second home is a good investment decision. Just make sure that you have prepared enough and taken all the necessary steps essential with all types of real estate investments.

  10. Second homes are not only good for retirees but also for families. Especially extended families. A second home is a good rendezvous for everybody on special occasions especially when everybody is busy on work days.

  11. It is true that a second home might add to your annual expenses but then there are many more advantages to it than disadvantages.Whenever you decide to buy the second home do proper research as to when you want to buy the house. Do not hurry because while buying a second home, there is no urgency as to where you would live in the meantime. However, looking at how things are going at present, it is certainly worth the time to inspect about the positive perspective of investing in Doral homes for sale to buy a beautiful house, which would be the second haven for you and your family!

  12. It is common for people living in the city or those affluent families to get second homes. How about the middle class families?