The age long question of when do I buy and when do I sell my property lingers on throughout the highs and lows of the market. For many, the simple idea of purchasing real estate and diversifying your portfolio becomes burdensome.
There is a simple solution to figure out when, where, and what to purchase. For a primary home, it’s not so complicated, but for an investment property, which many times becomes a second home, the concept can get complicated. Here are the general rules for such a purchase.
First, make sure you purchase a second home that is close enough in proximity to your primary that you’ll get good use of it. Too many times, second home purchases are across the country and just too far and expensive to visit often. It’s a good rule of thumb to purchase a property that’s within a 2-4 hour drive from your home.
Secondly, make sure the investment second home is in an area that allows nightly rentals and an area that is known as a vacation destination for getaways. For instance, if you live in Atlanta, then you may want to look at the North Georgia Mountains. Blue Ridge, Georgia is especially known as a tourist destination town. Their chamber of commerce focuses a lot of attention on tourism and nightly rentals, mostly cabins. Blue Ridge is approximately a 1 hour and 45 minute drive from Atlanta. You can’t beat that short drive.
If you’re purchasing a property in which you expect a financial return on a monthly basis, then choosing the perfect location is key. Once you’ve chosen a destination for purchase, it is also important to analyze the area and find the best option for your budget. In many vacation towns, properties that are near hiking trails, lakes and rivers, or have mountain views make for a better investment as that’s what visitors flock to see. A good real estate agent can help with this search. It’s good to choose one who knows the area well and has experience selling to the second home market.
The last and most important thing to know when buying a second home is to make sure your long term investment has strength in numbers. In other words, don’t purchase a second home that you clearly know is priced too high for market conditions. Your goal is to eventually sell and make money on your investment while in the short term it produces a profit. There again, find the right Real Estate Agent who will help you navigate through the process, and you’ll be on your way to enjoying your second home.