Reply to Second home as an investment property

Forum Index » Money and Finances

Reply to "Second home as an investment property - worth the stretch?"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous][quote=Anonymous]Ours has doubled in value in 5 years! We love it, rent it during peak season and use it ourselves before and after peak season. Plan to stop renting it in an other year. Will spend a lot of time there when retired. It’s been a very good investment and dream come true [/quote]

+1 to 1st 2 sentences.  We plan on continuing to rent it for at least another 8 years and then will see.  The rent pretty much pays for the mortgage and maintenance fees.  The place will be paid off in 3 years and then lots of passive income.

We own other properties that are purely rentals that we don’t use and they do well but none had gone up in equity as fast.[/quote]

These situations described here where value doubles or triples because you bought many years ago and/or got lucky with location isn’t likely to happen anymore.  The market is at the top everywhere, there is nowhere to go up in terms of prices.  It would have to be a truly unique situation to buy something at today’s prices with today’s rates and make huge profit in 10 years or so.  I wouldn’t count on this in OP’s situation having to buy now. Also relying on rental income will be stressful with today’s home ownership costs unless OP has cash.  If having to finance most of it, OP would also compete with those who bought long ago and can afford to charge lower rent to stay occupied.  All parts of the equation to keep in mind[/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics