Property Spotlight
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New York For Sale
$900,000
2 Beds / 2 Baths
| Fireplace, Terrace and Washer & Dryer, Plus Elevator! The main amenities that any lucky buyer would be happy to have one of, and here you get them all!.. more >>
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Sutton Area For Sale
$600,000
1 Beds / 1 Baths
| Rarely available floor-through apartment in top drawer established coop on beautiful tree lined block. Living room faces sunny South onto 52nd Street and bedroom faces into quiet back yards... more >>
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New York For Sale
$585,000
1 Beds / 1 Baths
| Best priced one bedroom in the incomparable Plaza 400. Updated kitchen and bathroom, amazing closets and sunny South exposure. This full service luxury building offers every amenity imaginable... more >>
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New York For Sale
$568,000
1 Beds / 1 Baths
| Move right into this beautifully renovated junior two bedroom facing south onto gorgeous tree-lined block. Building is cooped since 1968 and has wonderful planted roofdeck and amazing staff... more >>
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New York For Sale
$499,000
1 Beds / 1 Baths
| Newly renovated one bedroom has brand new kitchen and has been refurbished throughout. Pleasant North and West views are quiet and overlooking back yards of brownstones... more >>
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New York For Sale
$410,000
0 Beds / 1 Baths
| Alcove studio in wonderful established doorman coop has open North views. Renovated kitchen, original bath in good condition. Gorgeous tree-lined block, wonderful full-time doorman and coop since 1968... more >>
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New York For Sale
$4,100
1 Beds / 1 Baths
| South facing into gorgeous planted garden of the Parc Vendome, this totally renovated apartment is exceptionally large and beautifully appointed. Top of line kitchen with window... more >>
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New York For Sale
$3,800
1 Beds / 1 Baths
| The Westmore is a white glove building with 24 hour services... more >>
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New York For Sale
$3,800
1 Beds / 1 Baths
| The Westmore is a white glove building with 24 hour services... more >>
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The second home market is booming! In fact, recent studies by THE NATIONAL ASSOCIATION OF REALTORS report that
23% of all homes purchased in 2004 were for investment, while another 13% were vacation homes.
There are about 72.1 million owner-occupied homes in the U.S.
 Many lenders require buyers to put down at least 20% on a second home, and some require 25% or more.
Renting out a vacation home is a good way to cover some of the cost, but lenders often factor in a 25%
vacancy rate when determining your qualification for the loan.
The lesson is clear: Don't be overly optimistic on rental income--and you're nuts if you think the
vacation home will pay for itself immediately and in perpetuity. A vacation home can be just about
self-sustaining, but it takes careful planning and hard work. You shouldn't buy a second home on the
assumption that it will pay for itself.
If you plan to rent your vacation home, it's a smart idea to post the rent 10% to 20% higher than
your monthly mortgage payment in order to cover costs. Chances are you'll have to hire someone
to maintain the property in your absence, and unexpected repairs are a given.
Also remember that the most lucrative times to rent are the same times when you and your family will want to enjoy
the getaway--summer and Christmas.
You'll also have to decide what type of property you want: a house or a condo. Condominiums are great because
routine maintenance is included in the association fees, so you won't have to hire anyone to cut
the grass or make routine repairs.
Here are several steps you should keep in mind when considering a vacation home purchase.
- Start with a plan. You should start with a business plan just as you would if you were starting
any new business. To be confident of a sound investment takes a lot of research.
- Make sure you are purchasing with your wallet not your heart. It's easy to get caught up and sign on
the dotted line when you see that gorgeous beach home or perfect ski resort.
- Learn about the area. Is it a new area? Or is it an older, more developed area? This makes a lot of difference,
because if you are looking to purchase in an area that's well developed, there's less to worry about.
But in an emerging market you should exercise caution to be sure that there are not so many new developments
that the inventory exceeds demand.
- Leave your options open. You may want to buy a vacation home with no intention of ever renting it out.
But while today it may be financially feasible to not rent your home, you're never sure what the future
will bring. It's wise to purchase in an area that allows you to easily rent your property.
- Use your real estate agent. Pick your agent's brain. Ask tons of questions. Scour through his or her
Web site and absorb as much information as possible. After all, your agent is getting paid to be
knowledgeable in this area. Use his or her expertise to your advantage.
- Look for large, reputable developers. Developers do more research than any single buyer could ever dream
of doing. They invest thousands of dollars into researching the market, tourism, growth and inventory.
So if you follow large developers, your chances of failing are significantly less.
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Equal Housing Opportunity