I came across an excellent article from Forbes filled with advice on vacation homes; it covers property management fees, property tax rates, and tax tips, too. Second-home buyers are taking advantage of good deals available, purchasing now and renting out until retirement time. Buy now, retire later—smart strategy! Forbes recommends buying properties on the beach or with a view, as they hold their value better.
- Average age of vacation home buyers is 49.
- Mark Zandi, chief economist with Moody’s Analytics, predicts that housing prices will drop another 5% this year before hitting bottom at year’s end.
- Nearly 40% of vacation home buyers paid cash in 2010.
- “This is the greatest time ever for the cash buyer,” crows real estate attorney Adam Leitman Bailey…”My clients figure they’re not making money in the bond market. They don’t trust the stock market, and the interest is so low on their bank accounts it’s not worth keeping cash there, so they are floating money into real estate.”
Looking for the a vacation rental on Maui? Here’s a condo at Kihei Sands (MLS# 350211), a beachfront best buy with an ocean view and solid rental history.