Like the majority of real estate investments, most of those second homes will appreciate in the years to come. But in the meantime, you'll have to pay for maintenance, taxes, utilities, and all the other expenses associated with a house, condo, or other dwelling. Yet these properties sit empty and idle most of the year.
So when someone asks us, "Should I rent my second home?" we say, "Of course you should. You'd be crazy not to. Turn that luxury into a performing asset. Get it to generate at least enough cash flow to come close to paying for itself. And remember, you can't be in two places at once. So why shouldn't your second home be working for you when you're not using it!"
Everything depends on location and season, of course. But think about this: You own a beachfront house that could rent for $3,000 a week during the summer. Call it 10 weeks total. That's a gross income of $30,000. A year. Every year. Or make it a ski chalet. Or even a getaway cabin in the North Woods.
Maybe we don't travel in rich enough circles, but we are baffled by the millions of people who leave money like this on the table. Particularly when offering your second home as a vacation rental can be so painless and easy.
You know what's coming next. Property owners say, "Yes, but what about my stuff? What if the renters break things?" To which we respond: "Look, this is your second home, not your main nest. Buy attractive, high-quality furnishings, but don't hang your valuable print collection or display your rare antiques. Besides, anything you want to reserve for your personal use can be locked away in the "owner's closet" when others are renting the place.
And don't forget that you are always in complete control of when your property is rented and when it is available for your personal or family use. For now, we will pass over the potential tax benefits of turning your second home into an income producer. Other than to say two phrases: "expense deductions" and "depreciation deductions." We will also pass over the fact that a property with a proven rental/cash-flow history is likely to have a higher resale value than one that has never proven itself that way.
Regardless of how much money you have, if you own a second home, you owe it to yourself to at least consider offering it as a vacation rental when you're not using it.
Are you in the market for a vacation property? There has been a recent surge in holiday homes in Spain and for good reason. Property prices are less expensive than many other countries and the climate makes it ideal for vacationing year round. European buyers are the biggest market for Spanish real estate but it is possible to buy property in Spain no matter where you live. While buying foreign property has become easier in recent years, there are still some things that take extra consideration. Here are some tips to buying real estate in Spain.
Real Estate Agents
After deciding that a vacation home in Spain is for you, the first thing you should do is find a real estate agent in the area you are looking. Make sure you find someone with credentials and affiliated with a company so you won't get exploited. There have been reports of foreign buyers hiring unscrupulous agents who take advantage of the language barrier and the ignorance of Spanish laws.
It's also important to hire a lawyer who is well acquainted with the laws in Spain as they pertain to real estate and who can converse in Spanish and English. He or she will review contracts and the mortgage to make sure there are no ?holes? and you are protected. While a real estate agent may suggest a lawyer, you may want to find a reputable one on your own to ensure there is no joint interest involved. Get recommendations from others who have bought or ask lawyers for references.
Financing the Purchase
Since most will not have the cash to buy a second home outright, you will probably need a mortgage. There are many different mortgages available and some are specific to foreign investment so make sure you take the time to research the best option for you. Larger mortgage companies are usually able to provide an international mortgage to those who already own a home in their own country.
Many people take out a second mortgage to purchase a vacation home and it is a viable option if you have enough equity in your home. You are basically using your house as collateral to fund your .
Making Money on Your Home
Since a holiday home is just that, most people only spend part of the year in their second home. The rest of the time your second home will just be sitting empty while you still have to pay its mortgage. Many people rent out their property while they're not vacationing. Due to the distance involved it's not recommended to try and manage your rental from home. Agents can be hired to manage your property and though it will cut into your profits it will save you money and hassle in the long run.
Both Alfred Glossbrenner & Kurt Schefken are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Alfred Glossbrenner has sinced written about articles on various topics from Real Estate. Alfred and Emily Glossbrenner's most recent book is How to Make Your Vacation Property Work for You!: The Quick & Easy Guide to Advertising, Renting, Managing, and Making Money from your Second Home. Information:. Alfred Glossbrenner's top article generates over 5400 views. to your Favourites.
Kurt Schefken has sinced written about articles on various topics from Diamonds, Home Renovation Ideas and Coffee Advantages. Kurt Schefken is publishing at large for , an internet site with information about property prices costa blanca . You might discover his. Kurt Schefken's top article generates over 301000 views. to your Favourites.