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There are some great benefits to owning a second home such as for investment,
tax savings, and of course pure pleasure. There has never been a better
time to own a second home in the Valley. Demographics, lifestyle preferences,
lower costs of ownership, tax-saving benefits, and the ongoing property
appreciation are driving demand and growing market for second homes in
the Valley. Our baby boom bulge in the population is now pushing into
the age categories that include the largest numbers of second-home purchasers
in history. Now, an expanding market for second homes coupled with increasing
competition among mortgage lenders, record low mortgage rates, Arizona's
tax law that allows one second home at a primary home's mortgage interest
rate, and competition among property insurers is bringing down the costs
and difficulties of second-home ownership. Even changes in the federal
income tax laws offer pleasure users and investors a variety of possible
new tax breaks and deductions.
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Ten Tips For Finding A Perfect Second Home
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- Define your lifestyle interests. It's well known that people who buy
second homes are primarily looking at areas that have to do with their
recreational interests. So ask yourself 'What is it that I like to do?'
Some of it is subconscious. It might not be something they are aware of
so they have to define what is the appropriate type of place where they'd
like to be.
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- Determine the ideal travel distance. Ideal traveling time is a matter
of personal preference and tolerance. If it's too far or too expensive
to reach within a few hours, you likely won't use an owner-occupied second
home enough to justify its cost. Don't sell yourself short by insisting
if you buy it you'll use it. Before you buy, consider renting in the area
for a season. See how often you actually manage to get to your vacation
home.
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- Research locations. You may like golf, but can you really afford a
home in a golf community ? Okay, you've defined your lifestyle but what
about affordability, climate, population and all those other issues? Check
with the local chamber of commerce, use the Internet, or ask me to find
out more about a community. If you live in Michigan or New York, you can't
do a drive-by to find out if the East Valley or North Scottsdale is more
expensive.
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- Select the desired location. Within the destination you have to pick
the community. Let's say it's Scottsdale Do you want a new planned development
or do you want to be in closer to downtown Scottsdale ? Do you want a
patio home or town home for less maintenance? If it's a single family
home, do you want a back yard pool and/or BBQ ? ? If you are into golf
communities, do you also want a golf home on the fairway ?
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- Make inquiries with locals. Go knock on neighbors doors to find out
what it's like (that's what I do !). How many second home owners are there?
Are they true home owners or renters? Too many renters and they might
not be keeping the place up. You need community details often available
only from the residents or contacts with Realtors who have done business
in the community.
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- I will be your eyes and ears in distant places. You can do a lot of
things without a real estate agent, but there is a point when that picture
you saw and that virtual tour isn't enough. Your need a Realtor that you
can trust who will be there to help you ! My knowledge and expedience
can highlight areas of interest. One of the things I've learned is that
a vacation or second home real estate agent is very different from a regular
real estate agent in the Valley. You have to rely upon someone who knows
the area, rather than someone who merely sells homes.
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- Visit destinations. Most people will visit a destination two or three
times before they purchase. You start finding out about the resources,
what the travel time is really like if you drive or fly. An other thing
is most people buy a second home have in the back of their minds that
the property will be their primary residence at some time. Are you really
sure this is where you will want to live?
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- Review financing options. Some places deal with high-end purchases
that are almost always without loans and are 1031 exchanges. Can you use
your equity line to buy a second home? Financing for a second home is
different in many states and you pay more, about 1/2 point to 1 point
more. But in Arizona, you can purchase one additional home as a second
home at the best conventional loan program you can find ! There are also
different insurance criteria. The good news is you still get that mortgage
write off (up to certain limits, depending upon how the property is used
and its value). Involve your tax professional in the financing part of
the deal.
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- Purchase through a second or vacation home specialist. People selling
in a resort or vacation area know more about a particular area and typically
take it very serious that business comes from the outside. Outsiders'
questions are are quite different from those inside the area.
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- Enjoy the process. This isn't your primary residence and everything
doesn't have to be perfect. Have a little fun with it. You probably don't
have to be near the best school or within walking distance of the park,
or in a golf community rated in the top 10 ten in Arizona...unless of
course you want to !
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Scottsdale
Real Estate Scottsdale Homes For Sale Relocation To Scottsdale Phoenix Paradise Valley
& Fountain Hills - Golf - Patio Homes - Townhomes - Condos - TIM ROGERS,
SCOTTSDALE REALTOR®PRO 
