Despite the yo-yoing economy, the second home market continues to be surprisingly strong. Fluctuating financial markets and recent tax changes have made real property an extremely attractive alternative, propelling consumers toward the possibility of a second home purchase sooner in their lives.
In addition, second home buyers no longer want just a beautiful getaway place to retreat to - they also want their second home to be good real estate investment.
Two faces very familiar to housing industry followers have just released a new book focusing not only on the second-home market but also the investment and enjoyment possibilities of owning one home in addition to a principal residence.
John Tuccillo, the former chief economist for the National Association of Realtors and one of the more quotable national sources for more than decade, has teamed with Tom Kelly, a nationally syndicated real estate columnist and talk show host, to write How a Second Home Can Be Your Best Investment (McGraw-Hill Trade; Original Paperback: $16.95). The book explains how one additional property purchase – for investment, recreation or retirement – can serve all three purposes over time. It also offers terrific new strategies for acquiring and then turning your vacation getaway retreat into a valuable, comfortable investment known as “The New Second Home.’’
How a Second Home Can Be Your Best Investment shows homeowners and real estate professionals how to find a second home, finance it, and use it to build long-term wealth.
"Let’s quickly skate ahead to the puck,” said Tuccillo, one of the most popular and sought-after real estate speakers in the country who addresses more than 50 real estate associations every year. “There are two points that we wanted to make clear in this book . . . The first is that most folks buy second homes as an investment and would like to see that investment grow over time.
“The second is that real people buy second homes. We wanted their experiences in the book. I think we accomplished both ends."
Tuccillo, one nation’s foremost real estate economists, serves as a director of several real estate and mortgage technology companies. He is the author of The Eight New Rules of Real Estate and New Business Models for the New Economy that have been instrumental in shaping the thinking of real estate industry leaders and salespersons approaching the challenge of changing their business models.
According to the authors, the typical vacation or retirement home is not a million-dollar house in the Hamptons or a posh ski condo. Cottages, cabins and chalets are much more common than expansive estates. As millions of Baby Boomers get nearer to retirement, they are buying vacation homes where they hope eventually to retire and the second home market is expected to increase by 100,000 to 150,000 each year during the next decade. Investors of all ages now are considering a variety of rental homes that can later be traded for an eventual getaway property.
Kelly and Tuccillo explain how to invest profitably in a vacation or future retirement home – or an initial investment home that will eventually get you there. Featuring success stories from second home buyers and often-overlooked financing options, their book provides dozens of strategies and proven how-to avenues for finding the perfect home that will eventually pay for itself. It shows readers how to save thousands through exchanges and exemptions and includes valuable experiences of second home buyers and real estate investors.
“Many consumers underestimate the advantages of moving into their own rental property,’’ Kelly said. “They can buy a place on a lake, have renters pay for it and then eventually move in to it as their primary residence – tax free. Or, they can trade the rental for another home that might better suit their lifestyle down the road. The Taxpayer Relief Act of 1997 allows for countless combinations and possibilities.’’
Kelly, who served The Seattle Times readers for 20 years, now writes a weekly column focusing on aging baby boomers and retirees. The feature appears in more than 40 newspapers. For the past 11 years, Kelly has hosted an award-winning real estate program, Real Estate Today, originating from the CBS affiliate in Seattle (710 KIRO-AM) and airing weekly in 35 domestic markets and on more than 450 international stations in 160 countries via Armed Forces Radio. His latest venture is another radio program - Transitions: New Perspectives on Aging - which targets the questions, sources and issues of persons over 55 and their adult children. Transitions can be heard on 1210 KNWX-AM in the Puget Sound area.
Use our Amazon link to obtain a copy of How a Second Home Can Be Your Best Investment.