10 reasons for buying a second home in Florida
Owning a second home used to be reserved for very few people. With the changes in personal income, ease of travel and the day to day stress of everyday life more and more people are buying second homes.
Following are some good reasons to consider doing this yourself.
It's also important that you realize that the prices of homes on the water in the Florida Keys are still a real bargain compared to elsewhere in the US and even more especially Europe.
Following are the main reasons it could make sense for you and your family to buy a second home!
1.Gain appreciation as a good long term Investment.
Second home prices are definitely going up, especially in resort areas and here's why.
A- Demographics or baby boomers. They are now getting into the second home market and will continue to influence it in a big way up and through the year 2020.
B- Post boomers and professionals. It is now common to see two income households making $100,000 per year. Second homes are a direct route to more quality family and individual time for these people.
C- Foreign demand. Homes in the Keys are ridiculously inexpensive compared to European coastal cities. With 2 to 3 cruise ships a day coming into Key West, foreigners are buying up homes. First it was Key West, which is now one of the most expensive places in the country and now they are looking up the Keys.
You still have time however-homes on the water here start at about $200,000-some less.
D- More relaxation and rejuvenation. We are generally working harder and longer and have more stress than ever before. As more and more people look for life style changes or just a break, they are looking at vacation homes
2. Buy a fixer/upper
A-About 50% of the homes in the Keys were built as vacation homes and are used casually. A good percentage of these can use TLC or remodeling. So, finding the least expensive home in the neighborhood is a good way to gain appreciation plus get the benefits immediately.
B-A lot of these remodeling projects will be updating. Updating kitchens, paint schemes etc.
C-Landscaping. There is a lot of potential here plus everything grows well in this environment. This includes all the fruit tress/palm etc.
D-Adding bedrooms and baths and square footage. Since a majority of homes here are used as vacation homes, the people built them small.
3.Rent your home out to help subsidize your payments.
A-A home in the Keys is one of the few things in life that can help pay for itself. The Keys are a definite destination area. About half of our renters come from other parts of Florida who want the ambience and fishing/boating etc of the Keys.
B-We handle rentals everyday and have dedicated rental agents in each office. Look on my web page. Using your home as a rental, for more information.
4.Income Tax deductions/savings.
A-Talk to an accountant about different deductions that are available to you as a second home owner. For starters the Government allows interest paid on second homes. Also if you decide to trade up later there's a 1031 exchange which does away with capitol gains.
5.Get your place in the Sun now and while you still can.
A-You and everyone else always dreams of a place in the tropics-Warm nights, breezes, tropical weather, relaxation, sun, sand, palm trees and on and on. Well if you don't make a move now, it probably won't be any easier down the road.
Prices on waterfront homes in resort areas are not going down.
B-Don't get caught with this one in hindsight. Let this one not be a case of-- if only I'd bought Microsoft stock or bought that etc-etc back when. What seems expensive now won't 5 years from now.
6.Use it as a business tool.
A-Use it for clients/friends and business associates. The explanation is obvious. No one will be mad at you for offering them a vacation in the Keys.
7.Spread out your investments.
A-Homes have traditionally been good long term investments.
Homes in resort areas or second family home areas like Aspen, Lake Tahoe, The Keys have been even better as far as appreciation. Mixed in with stocks/bonds etc, Real Estate is a great way to diversify and enjoy the use of the home at the same time. Your health must be worth something to you.
8.Easy Financing.
A-In the past getting a mortgage on a second home was really hard. Now with life styles changing and people being able to work out of their homes and people retiring, that is all changing. The banks in the Keys, I know are probably the easiest I've ever seen in terms of putting a deal together. They do understand all the scenarios and they appreciate why you're moving down here. After all, they did the same thing!
9.Enjoy vacations all over the world with home exchange programs.
A-There are lot's of sites on the Internet that deal in home exchange programs. You can trade your home in the Keys for one in Europe or the mountains or wherever you desire. Use this as a way to see the world in addition to using it for yourself.. I'll bet you hadn't thought of that angle.
10. Enjoy the feeling of being in your own home.
A-A home, especially yours is going to be a lot more comfortable than any motel/hotel can ever be. Now, add up what you're paying for vacations, plus what your rental income can be (we will help you on this one-see my rental page to give you an idea what we get for homes) and then factor in appreciation, better health through relaxation and just plain fun!
But what if I can't afford it?
First off maybe you can't afford not to! If money is the main issue then what about-
A-Partnership agreements between friends and/or family.
Alot of homes down here are bought just like that. A partnership and or a corporation/trust is drawn up. There are generally first right of refusal options on the partners selling out at a future date. This could be a real option for you.
Following are some good reasons to consider doing this yourself.
It's also important that you realize that the prices of homes on the water in the Florida Keys are still a real bargain compared to elsewhere in the US and even more especially Europe.
Following are the main reasons it could make sense for you and your family to buy a second home!
1.Gain appreciation as a good long term Investment.
Second home prices are definitely going up, especially in resort areas and here's why.
A- Demographics or baby boomers. They are now getting into the second home market and will continue to influence it in a big way up and through the year 2020.
B- Post boomers and professionals. It is now common to see two income households making $100,000 per year. Second homes are a direct route to more quality family and individual time for these people.
C- Foreign demand. Homes in the Keys are ridiculously inexpensive compared to European coastal cities. With 2 to 3 cruise ships a day coming into Key West, foreigners are buying up homes. First it was Key West, which is now one of the most expensive places in the country and now they are looking up the Keys.
You still have time however-homes on the water here start at about $200,000-some less.
D- More relaxation and rejuvenation. We are generally working harder and longer and have more stress than ever before. As more and more people look for life style changes or just a break, they are looking at vacation homes
2. Buy a fixer/upper
A-About 50% of the homes in the Keys were built as vacation homes and are used casually. A good percentage of these can use TLC or remodeling. So, finding the least expensive home in the neighborhood is a good way to gain appreciation plus get the benefits immediately.
B-A lot of these remodeling projects will be updating. Updating kitchens, paint schemes etc.
C-Landscaping. There is a lot of potential here plus everything grows well in this environment. This includes all the fruit tress/palm etc.
D-Adding bedrooms and baths and square footage. Since a majority of homes here are used as vacation homes, the people built them small.
3.Rent your home out to help subsidize your payments.
A-A home in the Keys is one of the few things in life that can help pay for itself. The Keys are a definite destination area. About half of our renters come from other parts of Florida who want the ambience and fishing/boating etc of the Keys.
B-We handle rentals everyday and have dedicated rental agents in each office. Look on my web page. Using your home as a rental, for more information.
4.Income Tax deductions/savings.
A-Talk to an accountant about different deductions that are available to you as a second home owner. For starters the Government allows interest paid on second homes. Also if you decide to trade up later there's a 1031 exchange which does away with capitol gains.
5.Get your place in the Sun now and while you still can.
A-You and everyone else always dreams of a place in the tropics-Warm nights, breezes, tropical weather, relaxation, sun, sand, palm trees and on and on. Well if you don't make a move now, it probably won't be any easier down the road.
Prices on waterfront homes in resort areas are not going down.
B-Don't get caught with this one in hindsight. Let this one not be a case of-- if only I'd bought Microsoft stock or bought that etc-etc back when. What seems expensive now won't 5 years from now.
6.Use it as a business tool.
A-Use it for clients/friends and business associates. The explanation is obvious. No one will be mad at you for offering them a vacation in the Keys.
7.Spread out your investments.
A-Homes have traditionally been good long term investments.
Homes in resort areas or second family home areas like Aspen, Lake Tahoe, The Keys have been even better as far as appreciation. Mixed in with stocks/bonds etc, Real Estate is a great way to diversify and enjoy the use of the home at the same time. Your health must be worth something to you.
8.Easy Financing.
A-In the past getting a mortgage on a second home was really hard. Now with life styles changing and people being able to work out of their homes and people retiring, that is all changing. The banks in the Keys, I know are probably the easiest I've ever seen in terms of putting a deal together. They do understand all the scenarios and they appreciate why you're moving down here. After all, they did the same thing!
9.Enjoy vacations all over the world with home exchange programs.
A-There are lot's of sites on the Internet that deal in home exchange programs. You can trade your home in the Keys for one in Europe or the mountains or wherever you desire. Use this as a way to see the world in addition to using it for yourself.. I'll bet you hadn't thought of that angle.
10. Enjoy the feeling of being in your own home.
A-A home, especially yours is going to be a lot more comfortable than any motel/hotel can ever be. Now, add up what you're paying for vacations, plus what your rental income can be (we will help you on this one-see my rental page to give you an idea what we get for homes) and then factor in appreciation, better health through relaxation and just plain fun!
But what if I can't afford it?
First off maybe you can't afford not to! If money is the main issue then what about-
A-Partnership agreements between friends and/or family.
Alot of homes down here are bought just like that. A partnership and or a corporation/trust is drawn up. There are generally first right of refusal options on the partners selling out at a future date. This could be a real option for you.