The Second Home Market Makes a Comeback

The season of fun in the sun and long weekend getaways has officially begun. The second home market is making a comeback and now is the perfect time to make a move.

As the real estate market rebounded across the country in 2013, owning a vacation home became a reality to many.  A recent report from the National Association of Realtors shows that vacation home sales in the U.S. jumped 29.7 percent from 2012 to 2013 and accounted for 13 percent of all transactions, their highest market share since 2006. 

“The combination of a strengthened economy, affordable interest rates and a stable real estate environment makes buying a second home a tempting avenue to explore,” said Jim Dohr, president of Coldwell Banker Gundaker. “It can be a vacation destination, an investment opportunity and an income generator all at the same time.”

If you’re thinking about buying a restful retreat, first ask yourself these questions:

How will you use it?  Think about how you want to use the property. Do you want it to be close enough to be a weekend getaway or a week-long retreat? And most importantly, is it a short-lived investment or a home you’ll want to retire in?  These answers will dictate what features are most crucial in your new home.

Is the location ideal?  Whether you want to use your second home as a vacation site or as a rental, location is key. Before making an offer on a home, visit several times to get acquainted with the area by exploring the neighborhoods and checking out the amenities.  You may also want to get a feel of the community and the locals during off season, since the vibe can greatly differ depending on the time of year.

Can it be a source of income? For starters, you should talk to your tax consultant about the benefits of owning a second property to determine the pros and cons.   Keep in mind that as with any investment, there are maintenance expenses.  Having your home double as a rental property can help pay the mortgage and make repairs and improvements tax deductible.

Coldwell Banker Gundaker, the leading residential real estate brokerage company in St. Louis, operates 19 offices and is affiliated with 1,500 independent sales associates serving metropolitan St. Louis and east-central Missouri. Coldwell Banker Gundaker is part of NRT LLC, the nation’s largest residential real estate brokerage company. For more information, please visit www.cbgundaker.com.

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Real estate agents affiliated with Coldwell Banker Gundaker are independent contractor sales associates and are not employees of Coldwell Banker Gundaker.