San Diego, California has once again been placed amidst the top places to visit. This time, however, San Diego has been named one of the top 10 vacation destination spots for 2014. So who else made the list of top summer getaway spots? Is it a good time to buy a second home in one of these destinations? The following data should provide potential investors with insight into summer trends.
Top Summer Travel Spots for 2014
Per TripAdvisor and Fox News Small Business Center, the top destinations this year are as follows:
- San Diego, CA
- San Francisco, CA
- Las Vegas, NV
- Myrtle Beach, SC
- New York, NY
- Ocean City, MD
- Virginia Beach, VA
- Destin, FL
- Orlando, FL
- Key West, FL
With endless offerings of sun, sand, scenery and activities to enjoy, San Diego is full of potential. San Diego is a hotspot for real estate investment activity. What many might not realize is how much more active this summer is expected to be. Research surveys from Ipsos and TripAdvisor acknowledge that 77% of respondents plan to travel internationally this summer, and 90% will travel within the U.S. San Diego is expected to be a popular destination.
The 411 on Buying a Vacation Home in 2014
This is probably one of the best times to buy a vacation or second home. Mortgage interest rates have fallen back down, and home prices are still attractive. Rents are rising too, which can be great for those considering renting their homes out, outside of the weeks they plan to use them personally. This can offset costs of ownership, and even turn a significant profit. In fact, the National Association of Realtors recently reported that vacation property and second home sales were really the only sector which has been seeing consistently rising sales.
However, before buying, there are some important considerations to make, especially for those hoping to bring in income from their properties. When selecting a property, consider your goals. For short term enjoyment, an ocean view property could be the best move. Those that believe in erosions and climate change may consider investing further inland for long term enjoyment and value gains.
It’s also essential not to get seasonal and annual rental amounts twisted around. Recognize that high season monthly rents can be double, triple or even higher than annual leases. Also, discern the difference between asking and actual rents. Some real estate agents and homeowners have been whipping up a storm, claiming their units will rent for more than double actual local rents. If you buy a duplex based upon neighbors asking $1,200 a month for their units, and then discover half of the neighborhood is actually only paying $600 (and the rest have been vacant for 6 months), you’ve been mugged.
Similar considerations should be made in reselling and remodeling. Be wary of pricing your way out of the market. Remember, rentals are more about income than they are about looks. Consider how much money, work, and time is sensible to put into upgrades, and which will lose money. Not sure about having strangers in your second home? Consider fractional ownership with those you know, and spring for an even more luxurious pad.
