Why Boca Raton Florida Makes Sense for Second Home Buyers

Posted by Boca Raton Luxury Home Specialist on Tuesday, June 14th, 2016 at 10:58am.

500 Se Mizner Blvd Boca Raton Can Be second home or vacation home

One of the world’s most premier destinations is the Sunshine State of Florida.  That being said, Boca Raton is hugely popular among an elite crowd of socialites and jet-set communities. This is also a select location for ‘snowbirds’ and people who live here part-time.  Business travelers have a fondness for investing in fleeting properties in this sought after area. If you’re considering a vacation or secondary home, we offer this blog as subject for thought. Here are some reasons why this South Florida town is ideal for this type of housing.

According to the National Association of Realtors, 21% of the homes sold in 2014 were vacation homes.  That being said, we can ‘guesstimate’ that with a stable economy, (such as the one we have today) there will be more of these types of properties sold.

While the owner-occupied housing rate for Boca remains under 70%, 44,000 properties have a different type of mortgage or loan. These could be rentals but many of them are secondary properties with owners living in them part-time.

There are a few ways to obtain a vacation or second home if you have disposable income.  Investment properties, second-home financing and owner-occupied are most common. Investment properties need approximately 20-25% down and the owner isn’t allowed to live on the premises. Second-home financing will mean qualifying for two mortgages.

Keep in mind that when it comes to insurance, rates tend to be higher for vacation and secondary homes.  This is highly due to the chance that the owners won’t be present 24/7, leaving part-time vacationers or renters to tend to the property.

South Florida has an enormous population of people that migrate from places such as the Northeast, Midwest and Canada. Typically known as ‘snowbirds’ these residents journey to a warmer climate and live in this area between around October to April. 

Out of the many temporary dwellers, the majority of the properties sold between 2014-2016 were Canadian.  Second out of our international markets were from Eastern and Western Europe, Latin American and the Caribbean.

Often times these home buyers are seeking second residency because they desire amenities typically not found in their primary residence. Those elements could be anything from the weather for golf courses and the list goes on. Of course, every situation has a unique reason for purchasing no matter if you’re an international buyer or a local.

Because Boca Raton is close to two of our international airports, people are investing in secondary homes where they can commute. Between Palm County and Miami, ambitions run deep in the corporate world. Many of our commuters travel to the main offices in places such as New York, Chicago and California while operating businesses in this area.

Boca Raton has a multitude of luxurious condos ideal for entertaining colleagues and business partners. It’s safe to say, with the many amenities, such as golf and water recreation, any executive would enjoy investing in a second property in Boca.

Besides the entertainment, this area offers some of the most advanced medical treatment centers in the United States. As a large retirement area, healthcare professionals from around the globe, operate their practices. Besides a large variety of cardiologists, oncologists and the like, many plastic surgeons cater to medical tourism found here. 

Often times the physicians and administrators that participate have multiple locations to conduct business. These ‘top doctors’ understand the adage to smart living known as “location, location, location”. Boca Raton also caters to five-star hospitals such as West Boca Medical Center and Boca Raton Regional Hospital. Both facilities and selected members of their staff have been ranked as the top in the field of medicine,  by US News and World Report.

Many of our part-time residents are also world travelers. While abroad the jet set communities often times will rent their second homes. Sometimes second homes have different circumstances, such as renters, it's important to understand this is still a personal residence. When it comes to taxes, the same rules may not apply. For example, if you rent for less than 15 days per year you may not have to report this to the IRS. It’s best to consult with your financial advisor if you are planning on renting your property.

While exploring your tax options with the secondary property, be sure to do additional research. Preparing to buy a secondary home or vacation property is a big responsibility. You’ll want to make sure that your timing is right. Since mortgage rates have remained neutral over the past few months, many people looking to retire are taking advantage before the economy takes a turn. If this is going to be your future primary residence, then explore your finance options and be prepared to negotiate with the sellers. Your realtor will help you understand every option available.

There are alternative ownership options you can discuss with your realtor. If this will be a multiple person investment, you’ll want to observe and analyze.  Undoubtedly, when investing with more than one property owner, you’ll want to know every aspect of what’s entails.

People seeking a retirement home or vacation property will visit the location before purchasing. It is a great idea to speak with the locals, visit places like the grocery store and track property values.

A seasoned realtor will help you scout local listings, guide you through the purchase process and will stay in contact with you while searching for your second home. Be sure to ask your luxury home specialist to see properties listed as second homes by the sellers. Often times, lifestyles change and this area of real property can have some negotiating benefits.

Whether you're seeking your retirement home or a vacation getaway, Boca Raton is an excellent location to not only start your search but to end it.  The “City for All Seasons” provides encouraging weather, entertainment and a multitude of activity. Whether living here year-round or only a few months, this is one of the best for your "home away from home" destination.

In conclusion, our premier luxury specialists are here to assist, if you have questions. Contact us today, for more information.

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