Investment Property Vs Vacation Property
I was looking at the 2013 NAR (National Association Of Realtors) statistics on Vacation and Rental Properties from 2012 to 2013. During this time, Vacation property home sales increased and investment property home sales decreased. The reasons given are interesting. The increase of vacation sales are attributed to high net worth homeowners benefitting from the surge in the equity markets. Investment buyers slowed their purchasing in 2013 because prices were
rising quickly along with a declining availability of discounted
foreclosures over the course of the year.
Being that I am a Real Estate Broker and my business specializes in Property Management in Orange County Ca. I find the Vacation home trend very interesting. I wonder if many of these vacation homes will turn into rental property after the initial excitement of having a vacation home wears
off. It's like buying a boat or a motor home, I heard that the two best
days of ownership are the day you buy them and the day you sell them.
When you purchase Real Estate as an investment, you actually have
something, no exuberance necessary. I think it is a good idea to also be
in the equity markets, but California Real Estate to me is a great long
term investment as long as you do not need to be liquid.
The one thing that I do understand is taking your profits from the equity market, and putting the money into Real Estate. I watch the stock market every day and sometimes I laugh at the extreme exuberance that takes over the market. Companies like Alibaba get so much attention even though no one knows who actually runs the company, or if China will someday just take over the company all together.
Property Management in Orange County California, is a very interesting business to be in. I get to interact with many different types of investors. Some of these investors are in this business for the long haul and are looking to add to their Real Estate portfolio, others may be looking for the right time to get out, but the majority seem to be happy where the are right now. The one thing you will never see with Real Estate investors is the day to day ups and downs, like you see in the equity markets.