Playing With Your Emotions

When you are daydreaming do you see yourself somewhere exotic buying beachfront property? You are not alone! Despite our focused investing efforts to buy and sell real estate that will bring us long term wealth, every once in awhile our thoughts turn to investing in a vacation property as well. It is tempting to leave tenants and vendors behind and enjoy the fruits of our labours. This can be a great investing idea or a really bad one, depending on your motive.

If that vacation property is for you and your family to enjoy then by all means let your emotions run wild. If however, you are looking at it as real estate investing, you had better check your emotions at the door. This property, like any other you look at, must fall into line with the real estate fundamentals to be a good deal. Is it a vendors market and prices are up because it is high season? Is it a steady market or a depressed market? When you want to buy in a tropical setting you must be sure of the title and who really owns "your" property. In some places "squatter's rights" are in force and you as the official owner will be out of luck.

Buy your vacation property with your eyes wide open knowing that you buy with your heart. Otherwise, stay in a stable market so that you can afford to rent the best place on the beach for the whole summer if you want. There will always be vendors who will sell to you, just make sure of your reasons to buy.

Rhonda Hoffman

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