To Buy or Not to Buy? That is the Question
Our Real Estate Expert, Scott McGillvray, believes that there are more pros than cons when it comes to buying a vacation property. It is one of the four most profitable investment properties if you also consider it an income property. Rent increases when the properties are in season, which is typically more than enough to cover the expenses of owning a vacation property, and can also result in a positive cash flow after these expenses are paid off each month. However, you must first examine the rental rate and compare it to the carrying costs to see if it is truly worthwhile.
The best place for Canadians to look for a vacation property is in the United States. McGillvray jokes that they are having a huge sale right now but it's true the prices have never been better. It is also the safest place to invest because of its proximity. However, if you are going to invest abroad, McGillvray recommends financing the property domestically because the financing scenario in Canada is so much better than abroad.
It is important to your research when looking for a destination vacation property, compare list prices to selling prices in the same area, this will help you assess what the property’s actual market value is. Examine the pros and cons of buying a vacation property from all angles before taking the plunge.
Links to some of the listings featured on today's show: