1 of 7 photos San DiegoCA For Sale $449,0004 Beds / 2 Baths
REE 24 HOUR RECORDED INFO AT 1-800-433-0203 EXT 101.
This updated 4 Bedroom 2 Bath home is in a prime location on a corner lot in a quiet, friendly neighborhood of Clairemont...
1 of 2 photos EncinitasCA For Sale $549,9003 Beds / 2 Baths
This single story home is located in Village Park. This is a great neighborhood with parks and walking trails. The home has a fireplace in the living room to cozy up to with your friends and family...
1 of 7 photos San DiegoCA For Sale $449,0004 Beds / 2 Baths
REE 24 HOUR RECORDED INFO AT 1-800-433-0203 EXT 101.
This updated 4 Bedroom 2 Bath home is in a prime location on a corner lot in a quiet, friendly neighborhood of Clairemont...
1 of 11 photos EncinitasCA For Sale $420,0004 Beds / 1 Baths
Charming home faces west to enjoy the gorgeous sunset views. Perched high on the hill for lovely ocean breezes. The kitchen is light and bright with white cabinets, center island and tile flooring...
1 of 1 photos JamulCA For Sale $399,0005 Beds / 5 Baths
5 BR and 5 BA, Custom Built Home on OVER 2 ACRES of usable land!
Put your own finishing touches on the interior and landscaping to complete this home and make it amazing!..
1 of 9 photos San DiegoCA For Sale $399,0002 Beds / 3 Baths
REDUCED! This townhome is located in a quiet complex Chateau Village. This complex features pool, spa and tennis courts. You will feel the openness with the vaulted ceiling...
1 of 7 photos SanteeCA For Sale $369,9003 Beds / 4 Baths
Must see the breath taking views in Northstar at Sky Ranch this complex is nestle in the hills of Santee. You will feel at home in this upgraded townhome...
1 of 1 photos San Diego For Sale $324,9004 Beds / 2 Baths
4BR/2.5BA
From the front porch you can see the OCEAN! Handyman special - bring your tool belt and fix this home up! Large back yard - for you to create your own private haven...
1 of 3 photos San DiegoCA For Sale 2 Beds / 2 Baths
This townhome features 2 bedrooms and a loft. Once you are inside it feels spacious with high ceilings and many windows. Use the loft for an office or extra bedroom...
1 of 2 photos San DiegoCA For Sale 4 Beds / 2.5 Baths
This 4 bedroom home is spacious and on a large lot. Cosmetic fixer with tons of potential. The property has a view of the hills. Close to freeway - near parks and schools...
1 of 12 photos San DiegoCA For Sale $369,9003 Beds / 2 Baths
A desirable area with a Charming 3 bedroom home! Updated and well kept home has recently painted inside and out with newer glazed windows and front security gate...
Vacation Home Buyer
The second home market is booming! In fact, recent studies by THE NATIONAL ASSOCIATION OF REALTORS? report that
23% of all homes purchased in 2004 were for investment, while another 13% were vacation homes.
There are about 72.1 million owner-occupied homes in the U.S.
Many lenders require buyers to put down at least 20% on a second home, and some require 25% or more.
Renting out a vacation home is a good way to cover some of the cost, but lenders often factor in a 25%
vacancy rate when determining your qualification for the loan.
The lesson is clear: Don't be overly optimistic on rental income--and you're nuts if you think the
vacation home will pay for itself immediately and in perpetuity. A vacation home can be just about
self-sustaining, but it takes careful planning and hard work. You shouldn't buy a second home on the
assumption that it will pay for itself.
If you plan to rent your vacation home, it's a smart idea to post the rent 10% to 20% higher than
your monthly mortgage payment in order to cover costs. Chances are you'll have to hire someone
to maintain the property in your absence, and unexpected repairs are a given.
Also remember that the most lucrative times to rent are the same times when you and your family will want to enjoy
the getaway--summer and Christmas.
You'll also have to decide what type of property you want: a house or a condo. Condominiums are great because
routine maintenance is included in the association fees, so you won't have to hire anyone to cut
the grass or make routine repairs.
Here are several steps you should keep in mind when considering a vacation home purchase.
Start with a plan. You should start with a business plan just as you would if you were starting
any new business. To be confident of a sound investment takes a lot of research.
Make sure you are purchasing with your wallet not your heart. It's easy to get caught up and sign on
the dotted line when you see that gorgeous beach home or perfect ski resort.
Learn about the area. Is it a new area? Or is it an older, more developed area? This makes a lot of difference,
because if you are looking to purchase in an area that's well developed, there's less to worry about.
But in an emerging market you should exercise caution to be sure that there are not so many new developments
that the inventory exceeds demand.
Leave your options open. You may want to buy a vacation home with no intention of ever renting it out.
But while today it may be financially feasible to not rent your home, you're never sure what the future
will bring. It's wise to purchase in an area that allows you to easily rent your property.
Use your real estate agent. Pick your agent's brain. Ask tons of questions. Scour through his or her
Web site and absorb as much information as possible. After all, your agent is getting paid to be
knowledgeable in this area. Use his or her expertise to your advantage.
Look for large, reputable developers. Developers do more research than any single buyer could ever dream
of doing. They invest thousands of dollars into researching the market, tourism, growth and inventory.
So if you follow large developers, your chances of failing are significantly less.
Many lenders require buyers to put down at least 20% on a second home, and some require 25% or more.
Renting out a vacation home is a good way to cover some of the cost, but lenders often factor in a 25%
vacancy rate when determining your qualification for the loan.
The lesson is clear: Don't be overly optimistic on rental income--and you're nuts if you think the
vacation home will pay for itself immediately and in perpetuity. A vacation home can be just about
self-sustaining, but it takes careful planning and hard work. You shouldn't buy a second home on the
assumption that it will pay for itself.
If you plan to rent your vacation home, it's a smart idea to post the rent 10% to 20% higher than
your monthly mortgage payment in order to cover costs. Chances are you'll have to hire someone
to maintain the property in your absence, and unexpected repairs are a given.
Also remember that the most lucrative times to rent are the same times when you and your family will want to enjoy
the getaway--summer and Christmas.
You'll also have to decide what type of property you want: a house or a condo. Condominiums are great because
routine maintenance is included in the association fees, so you won't have to hire anyone to cut
the grass or make routine repairs.
