Is Now The Right Time To Buy A Second Home?

Hi Folks,
   Today, we have a special guest post from Matthew Read, a home insurance specialist, who will be discussing the topic that a lucky few of us get to ponder; "Is Now The Right Time To Buy A Second Home?"

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It might sound crazy to invest money in a second property at the moment, given the instability of the economy, but there are a few positive reasons to do so:

First:
Home prices in many areas of the country are low...very low! According to Zillow.com, the average home price in the U.S. has fallen by around $65,000, as the average price went from $240,000 down to $175,000 since 2006. Although home prices might continue to fall, they are currently at a very appealing level, and so now might be the time to invest in a second home before prices start to rise again.

Second:
Interest rates are very low, meaning that, if you can get a mortgage, now is the time to do so. For those who already own a home, the mortgage rates on a second home would be incredibly appealing at the current time.

Third:
A second home can be a great money earner. Although you might have to spend money on fees, maintenance and second home insurance etc, you could rent out the home or do a rent to buy option, covering the mortgage and making some money on top. With a strong renters market at the moment, this could be a nice little earner for you.

Finally:
It’s better than saving! Interest rates on savings are quite low at the moment, and so you may benefit more in the long run by investing your savings in property than in the bank. Normally it would be the other way around, but with the banking issues at the moment, your money may actually be safer in property investment than bank investment.

Obviously before pursuing anything like this you should talk to the real estate experts, but it is definitely something worth thinking about if you have the spare capital or equity available.

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Thanks Matthew - hopefully, this info will prove extremely helpful to our readers.

Have a Great Day, and Happy Rent-to-Owning !

Regards,
Rob Eisenstein
HomeRun Homes Blog http://blogging.lease2buy.com
HomeRun Homes Website http://www.lease2buy.com