Excerpt from: Buying and Owning a Second Home
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| March 27, 2009 | | Is now the right time for you to buy a vacation home? | Right now, there are a number of great deals available -- especially in terms of second home real estate. Interest rates are low, and home prices are down. For some, now could be the right time to buy a home.
Of course, before you decide to buy a vacation home, it is important to consider the costs associated with that property. You should calculate the monthly mortgage payment, as well as consider taxes and other expenses. It's all about opportunity cost.
It is also important to consider how second home real estate fits into your overall investment and financial plans. You should also realize that you have to bring a little more to the table if you want to qualify for a second home mortgage. Here is what CNBC points out about buying a vacation home:
As such, if you’re looking to expand your real estate portfolio in
today’s market, be prepared to bring more cash to the closing table and
perform greater due diligence to ensure the property you do select
meets your personal and long-term investment needs.
If you can swing it, you aren't likely to see such another good opportunity for second home real estate.
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