The Second Home Muse

Check Out Mexico

Yesterday I had lunch with a friend who is also an interior designer, currently working on a project in Mexico. We got to talking about second homes in Mexico. Seems we have both had our eyes on the same little town, Todos Santos. It's part artist-colony, part expatriate, and 100% beach and beauty. It's less developed than Cabos which is at the tip of the Baja Peninsula. And prices are still quite good, whether you want land, a condo or a casita.

Now, I always worry about putting info about an up and coming place on the website, since that would be the beginning of a big influx. At the same time, this is such a good time to look elsewhere for your second home, as the US market bounces around. So, check it out, but please, don't tell your friends :)

Research Mexico Properties

Apartments in New York

Well, gee, this one just has to be written about, since it totally changes the face of New York's middle income housing. Are you ready? Stuyvesant Town and Peter Cooper Village, 80 acres of apartment housing known to every New Yorker, is up for sale! If you have been hungering for 110 apartment buildings to call your own (maybe you have a big family?), and you have $5 billion in spare cash, you can join the bidding wars. If, instead, you've looked forward to buying a condo in NYC and can't find any, wait till the sale is over, as there's a 50-50 chance the buyer will try and convert the whole thing.

Either way, it's clear that the middle income folks who live there now will get the short end. As many of the apartments are rent-controlled, there are people paying $1400 for a 3-bedroom. Not for long.

Alas, poor Yurick. I knew him well.

Vacation Rental Rules

It's always been a grey area...does renting your second home as a vacation rental mean you are a commerical enterprise? In one California vacation spot in the San Bernadino mountains, the town council has said yes, and has created rules for the rentals that make the owner be as responsible as commercial B&B's, for example. Their recent ordinance says that vacation home rentals need to obtain permits and be inspected every two years. The regulation "includes limits on the number of guests and permitted parking areas as well as provisions for trash collection, snow removal and lighting."

The mountain area around Big Bear Lake is a popular vacation spot, and yet the long-term tenants are concerned about the short-term renters that come and go. Actually, from the point of view of the second home owner, being able to state that your home meets county standards is probably a very good thing. It can create a comfort level for the propective renter, which in turn increases your ability to rent. My sense is that San Bernadino has found a way to make everyone happy...not being too restrictive, but also, not ignoring the realities. Good for them!

Read more articles about renting your vacation home

What Affects Real Estate?

Real estate professionals are often the best barometer for what is good for an entire community. As an example, take an area like West Sonoma County in California. The coastal area is a prime spot for second homes, with serene, pristine and protected rolling hills and coastal views. As a result, second home prices are at a premium. So when a stunning piece of coastal land is being sold to a gravel mining company, even real estate agents get concerned. As one of them mentioned to me, it's all about disclosure. You certainly have to let your clients know that the view of the hills they are about to buy, may disappear as the mining operation gets going. And then, what happens to the prices?

Of course, there is alway the phenomenom of 'not in my backyard.' But when an area is zoned for its scenic and biological value, allowing it to be dug up sure feels like a case of killing the goose that lays the golden eggs. For more information, visit Bay Hill.org

Are You a Real Estate Market Maven

Maven, in case you are not from New York, means, Expert. Now the question is, since everyone seems to care about the real estate market, how much of an expert are you? Here are two 'fun' questions. First, in July, the housing market fell again, in numbers of sales, and in many regions, the prices for existing homes dropped. Which area, Northeast, South, Midwest or West, had the biggest drop? Yup.. you got it... the greater the height, the greater the fall. It's the  West.. down 6.4% in the month of July. Hope you can hang on for the ride.

Second question, let's see if you match the experts here. Given that the housing market delined again in July, and that interest rates have gone up, and that inventories are at their highest level ever, would you predict that in the future, a) prices and sales will continue to decline, b) things will stabilize now that interest rates are up or c) things will go up.  Well, if you picked c), you agree with the NAR economist, David Lereah. He commented on the numbers saying that because of the buyers market  "there could be some lift to home sales, but it will likely take some months for price appreciation to rise.” David, it's great to have an optimist in the business! Let's see what happens.

Second Home Criteria

We've often championed making lists of exactly what you want in a second home. However, it may not have been stated often enough... you also need to let the realtors know as well. It sure helps them do a proper search for you. Recently, one of our EscapeHomes readers shared a great example of a list. What I loved about the list was how they helped narrow the search. They included these details:

- Needs to be a four-season home
- What kind of house (ie, log, etc)
- Which 11 counties within their desired state
- The size of the lake and the amount of lake front property they want
- Max purchase price, # of bedrooms, baths
- Age of the house (ie, new)
- Feel of the house (ie, wooded, open, etc)

You can see that with a list like this, they and the realtor save time. No looking at inappropriate sites. And the best part is, with a nice broad geographical area included, there's no way they won't find their dream home. So dream big... and dream specific. Then you get what you want.

Hot Tubs are In

Just back from an extended vacation, I was delighted to get this tip from written up by Tom Kelly in LA. Did you know that if you have a hot tub in your vacation home,  you can get almost $14,000 more in rental income each year. It makes sense, doesn't it. After all, there's no season for hot tubs... people love them all year round. Plus very often, it's something one doesn't have in their primary home.

But don't worry about changing your criteria for buying a second home. It's not like it has to have one already. They are pretty easy to add, and most likely will pay for itself in the first year of rentals. But do keep it on your 'upgrade' list when you do get that second home. And most important, don't forget to tell everyone you have one. There, now you know something new.

Hot Summer Vacation Homes

During these hot days, the best place to be is wherever you can be cool. However, even normally cool places like New Hampshire and the Cape are sweltering. Here's some tips on what I found as I traveled during the hot days of summer this year:
- Property by water is the first choice for the heat. That could be a lake or ocean, but the closer to the water, the cooler it was.
- Valleys seemed to be warmer than the tops of hills. One night in New Hampshire, up on the hill, at least there was a breeze to cool us down. When we moved back to town, it was hot and humid.
- Any place where you can simply stay still and not have to go any where is a boon. If you have kids, be sure the place has a great outdoor area so you don't need to drive any where.
- Old houses with porches stay much cooler than the new houses without them. Those old victorian summer homes were built to handle the heat. They were designed with the most amount of shade. Of course they can be quite cool in the winter, but for summer, nothing like a porch to cool the house down.

And last but not least, don't forget...nothing lasts forever, not even heat waves. Enjoy the ride.