Tips for Buying a Second or Winter Home in Boca Raton

Top Reasons Why Buying a Second Home May Be Just What You’re Needing

The city of Boca Raton is a place many have called home for decades. Both ‘snowbirds’ and full-time residents have found this to be the ideal location for investing in property. However, our focus will be on buying a secondary or winter piece of property and what you should be aware of when it comes to your reasoning. While many of our residents find this awesome Palm Beach County town to be the optimal area, others may need to have some guidance. Read on to find out more.

Consider Your Long-Term Goals First

It’s almost commonplace for tourists and visitors who have vacationed in Boca Raton, to want to live here. With a flourishing economy, plenty of entertainment, shopping and top-notch schooling who can blame any prospective home buyer for becoming interested in investing? If you’re looking to buy that second home or a vacation property, then take into consideration the long-term goals. In the event you should ever want to sell, just about any luxury home or condominium in the area should maintain it’s value. Only due to location, there are a million different reasons for buying a secondary residence in the area should be a ‘home run’ when it comes to investing. For example, Boca Raton offers excellent educational institutions such as Florida Atlantic University and a multitude of other schools where learning is top-notch. Home buyers will be delighted looking into the future, knowing they are investing in a location that will continue to offer excellent reasons for other home buyers who are looking for real estate now and, in the years, to come. Also, ask anyone at the Chamber of Commerce or Town Hall what businesses are seeking to move in, and you may agree, your long-term goals are similar. As the old real estate saying goes ‘location, location, location’ this South Florida town will continue to offer prime housing as well as the amenities people will seek out making your secondary home desirable for someone else in the event you need to sell.

Avoid Being too Impulsive

In many cases, people who visit the area are enchanted by the sandy beaches, recreational space, and the landscape. But, secondary home buyers need to consider how much time they will spend in the area to avoid ‘buyer’s remorse.’ If you’re contemplating a 2-week visit versus several months, then a beachfront property may or may not be for you. Purchasing a secondary home or vacation destination requires time and preparation as well as residency. Many of the snowbirds or vacationers buy because they are looking for an escape from harsh winter weather in other parts of the country. For those who are retired, work from home or have a healthy financial portfolio, buying that home away from home may be worthwhile. However, those looking to spend a couple weeks out of the year may find the cost to be more efficient renting rather than buying. In other words, don’t be impulsive and buy to fit both your budget and needs.

Tax Advantages for Boca Raton Home Buyers

In most situations, buying a second home entails a tax deduction. However, in the luxury market that can sometimes change. For instance, if the loan is less than 1.1 million dollars, but your debt is less than $1 million, then your tax deductions may apply (depending on the current tax laws). Many people use their second homes as additional tax advantages. However, it’s best to discuss these opportunities with a real estate lawyer or agent before investing to ensure you’re secondary property is working for you and not against you. Often you can write off 100% of the interest due to debt that is combined between your first and second home. Moreover, you could collect property taxes on both houses making buying a secondary property even more attractive for some. For more information on tax consequences, please consult your tax attorney or CPA.

Consider the Growth of The Economy

Our current economic status is booming positively. More importantly, if you were thinking about investing in a winter home, then you should also examine how low the mortgage rates are thus far. With these rates being at a historic low, it’s no wonder so many people are investing in that retirement or vacation property! You’ll want to speak to an advisor or your real estate agent on what the future predictions may be and how these points can factor into your home buying needs. But, just as the stock market recommends buying low, the housing market will most likely tell you the same. However, many of the listings may include higher price points than others. If that’s the case, then you must contemplate what the future may bring. The market is flourishing now, but most loan officers and mortgage advisors will recommend a 30-year fixed to off-set any real estate bubbles from bursting.

Know Your Area

Boca Raton and any of the East Coast real estate has plenty of exciting things to see and do. But, we’re also subject to inclement weather. By knowing and understanding your area, you can best be prepared during times of the year such as Hurricane Season. Our part-time residents here take additional precaution and preparation before departure from the secondary homes. Whether that means hiring an outside company to weatherproof your home or doing the work yourself, you’ll need to know, nature and time are of the essence. By keeping your investment safe, you’ll have peace of mind. Another word of precaution here is to speak to an agent about finding a vacation property with full-time security or managers on site. No matter what the storm entails, you’ll be protected in the best-case scenario.

Know Your Neighbors

Also, knowing your area means your neighbors and the surrounding businesses. If you want to live where there’s plenty to see and do while walking, look around before meeting with your realtor. Drive the neighborhood and be sure to witness the amenities and things like police presence. A secondary home needs to make an excellent addition to your portfolio and not be a daunting piece of property. A neighborhood full of friendly caring people will be far more attractive than one without and will make you much happier for years to come.

If you are thinking about selling your luxury home or condo, contact our seasoned and knowledgeable staff.