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Money Magazine writer Amanda Gengler on the factors to consider when you are deciding whether to buy a second home.
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With oil prices continuing to fall and interest rates still near record lows you're probably wondering is now the best time to buy vacation home.
My next guest has a few tips to help you decided -- alert is a writer for money magazine Amanda great to CEO great -- -- Jerry all right -- 35% of people who buy second homes I think what they'll use -- retirement.
So how do you make the decision whether you're ready or not to actually buy one.
-- I really think even if your retiring a decade down the road this can still be a great time but you really just want to ask yourself.
And my and -- -- because I'm ready am I doing that because I want evocation home again a way to go to our arm -- doing is simply because.
There are deals to be had and I'm worried I don't take advantage of this that I'm gonna miss my opportunities up.
We would argue that you really want to be buying because you want that getaway home to go to and not simply because you're tempted by -- of these good deal.
There aren't good deals out there commanded a second home market is in the -- still.
I mean if you turned around but not all of them not -- -- shot when things you say is that you really have to be realistic about expectations what do you mean by.
Well there's so many people who think a second home sounds so ideal but then realistically when they buy yet.
They have kids kids have soccer games school activities word gets in the way and they just don't make it to the home is frequently.
As they had anticipated and they also don't necessarily -- it out.
As frequently as they thought they cut and so you -- is really wanna make sure you know how often will I get there and also what are my rental prop.
Specs so prices could continue to -- to now I know people try to time this markets absolutely impossible my view is figure out the pricing out there.
Yet and buy -- if you really want it and love it.
And at prices -- little didn't care exactly -- mean you definitely don't wanna buy a -- plan and a holding for at least five to seven years but were also seen.
A lot of divergence in what's going on in the different markets around the country there are certain pockets of the country that are still in very rough shape -- Florida comes to mind but then our other areas of the country where.
Sales have jobs and prices have actually risen some recent data from core logic -- that a quarter of the nation's.
Almost 400 metro areas have actually seen.
Rising price says -- That really gets down to you know what's going on in the particular area that you -- -- buy and -- about leveraging getting the very best deal that you can you say that if you use cash you can really negotiate.
-- if you aren't making a bit on -- home where you're gonna have some competition.
-- really help you just because sellers often prefer it even if your bid is slightly lower just because.
It's a -- comes in with a mortgage they can often fall through can take months to get approval as -- sellers may accept your bid again even if it's slightly lower.
But on the other hand there's something -- might wanna consider which is that.
Fifteen year mortgages.
Or fifteen year mortgage today the rates are you know less than -- Hillary -- and so you might want to consider taken out of fifteen year mortgage instead of -- homeowners insurance and some markets very difficult to not -- possibly yet.
And if you're looking coastal areas it's so expensive what do you do about that.
We just really wanna make sure your realistic about what your insurance and also your taxes will run.
Before you even start looking or make a bid because as you said insurance and some of these areas can get to four times as much.
As you would pay on your primary home and insurance also might just be more expensive because you're going to be there is not so there's a higher possibility.
That story out there -- flooding starts to turn off the water that's absolutely true -- many thanks for coming in tonight great job fascinating information we really a pretty great to be here Jerry.
