Vacation Time is Here

If you are anything like the rest of us, you’ll soon be packing up the car and the kids and heading down the highway to your favorite vacation destination. And like most of us, you’ll dream about what it would be like to actually live there full time. What a life. Kicking back, forgetting your troubles, sitting on the beach, maybe starting a surf shop or one of those tacky souvenir stores where you can get t-shirts and ashtrays and sun hats and key chains.

Well, I don’t know about any of that, but you may harbor a dream or two of owning property in that favorite destination. You know, a place you could just pick up and go to any time. No reservations or planning, just go, on a whim. You may also have figured out that only the well-to-do could consider such an extravagance. Certainly, that would be out of your reach.

Well, this I do know about, and if a second home is something you have always had a hankering for, this is probably the best chance you are ever going to have to realize that dream. Although our real estate market locally has dodged the bubble-bursting bullet, many very desirable vacation destinations around the country have not been so lucky. If you like vacationing in Florida, Nevada, Arizona or California, the real estate bargains are too good to pass up. The point is, values in these locations have never been lower, yet these are very popular locations, so it is nearly a sure thing that over time, the values will return. I mean, really, does anyone seriously believe that Florida values are going to remain depressed forever? People love it there, so of course their values will return. If you can make a wise purchase, your investment will, at the same time, increase exponentially.

Many people falsely believe that even at depressed values, properties in these locations are still out of their reach. Well, how about a one-bedroom condo, on the water in St. Petersburg Beach, for less than $400 per month? Chances are pretty good that your car payment is greater than that. That turns out to be less than $14 a day – you can’t even stay at Motel 6 for that. So what are your options? Well, you could keep it all to yourself and just visit as often as you like OR you could rent it to vacationers and make a tidy profit, still reserving a block of time for your personal use.

The question now is how do you get started? First, do a little research. Visit one of the national real estate Internet sites and cruise the markets in which you’re interested. Realtor.com is easy to find and use, so start there. All you need to do is type in the name of the city in which you’re interested, and all of the available properties will pop up. You can restrict your search further, by price and several other parameters, in order to fine-tune your search. Most good listing agents will have numerous photos online – you’ll get a really good idea of what your money will buy and most listings will indicate the monthly payment as well.

Next, place a call to your favorite local mortgage banker and have yourself prequalified for a mortgage on a second home. Make sure you tell them that this purchase is a second home – that status is generally treated more favorably than investment property, and as long as you intend to use the property personally, you qualify for a second home mortgage.

Finally, you will need local representation. Although you certainly could just contact the listing agent for the property you saw online, you will know nothing about that agent and his or her competence. The solution? Contact your local realtor. Most real estate firms are associated with a national network of real estate companies through which you can be referred, and an agent will be assigned to you.

Here’s a last piece of advice. Don’t buy anything without visiting the property and doing your research. Although the opportunities are out there, not everything is as it seems, so investigate the market you like and learn as much as you can. Get professionals involved—your realtor, appraiser, home inspector, mortgage banker and lawyer. You may have been through numerous property transactions here, but purchasing in other states can be a foreign experience, so depend upon the advice of your counselors and be conservative. Don’t rush in. Buying a second home is a good idea – maybe even great – but that doesn’t mean that you can’t make a mistake, so use caution.

If you are thoughtful and careful, the experience can be fun and lucrative. So take a trip, have fun, look around, think about it, and when you’re ready – go for it. It might just be the best idea you’ve ever had.

Gary Straub is an independent real estate consultant who has been a real estate professional for 36 years.