Date Archives: June 2019

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June
26

HOW TO CUT AN AVOCADO SAFELY

HOW TO CUT AN AVOCADO SAFELY

If you've been removing an avocado seed by striking it with a knife, you may be putting yourself at risk of an injury. While it may seem quick and easy to remove an avocado seed with a knife in your hand, it's not the safest way. I'll help you understand a safer way to handle your avocados while maximizing the nutrition you can get from them!

Cutting any food in your hand is never a good idea. It only takes one slip of the knife or an avocado to cause serious injury. As the popularity of avocados continues to grow, so have the reports of these injuries - now widely known as "avocado hand." 

To avoid such injury, the most effective way to approach cutting your avocado is as follows: 

  1. Select your ripe avocado and wash. If you need help ripening avocados, see this link.
  2. Wash the avocado thoroughly, dry and then place on the cutting board.
  3. Carefully cut the avocado in half length-wise around the seed, with the fruit flat on the cutting board.
  4. Rotate the avocado ¼ turn and cut length-wise around the seed, creating ¼ avocado segments. Put down your knife.
  5. By separating the quarters, you can remove the seed seamlessly with your fingertips!

Now let's talk about how to maximize the nutrition of an avocado. When scooping the fruit out with a spoon, you might miss the fruit's most nutrient dense part - closest to the skin. Though all of the avocado pulp/flesh is good for you, try peeling your avocados instead. This reveals the beneficial plant pigment or dark green fruit closest to the skin where you get the greatest concentration of "carotenoids". It's nutritious and delicious! 

Other helpful articles:

June
26

6 Tips for Selling Your San Diego County Home Fast This Summer

6 Tips for Selling Your San Diego County Home Fast This Summer

By Susan Mackey

 

Source

 

Summer is a hot time on the real estate market in San Diego County. It's the time when most families are looking to move, and also when the competition to sell homes heats up. As a homeowner, you want to do everything you can to make your house stand out. If you've got time to wait for the perfect offer, great! But if you need to get out of town as soon as possible, check out these six tips for selling your home fast this summer.

1. Keep It Green

A lush lawn will not only raise the curb appeal of your home, it will also draw people to your doorstep. A beautiful landscape shows potential buyers you care about upkeep. A proper summer lawn care routine includes mowing, watering, and applying a quick release fertilizer will keep the lawn green. Outdoor living space is in high demand in the San Diego area since people want a comfortable place to enjoy the sunshine. Making sure the outside looks as nice as the inside is essential.

2. Know the Value

You want the highest price for your house, but knowing what your home is worth is vital when pricing it. Your real estate agent will help, but it's good to check out other homes in your neighborhood to stay competitive. Pricing too high will stall the selling process. Take the emotion out of the process, so you don't end up dropping the price too much when it comes time to negotiate.

3. Stage Exterior Areas

Outdoor living spaces extend the useable square footage of your home. Staging these areas for ultimate comfort and style is an excellent way to sell your home fast this summer. Place some comfortable outdoor furniture on the patio along with side tables to show how relaxing the backyard can be. An umbrella to provide shade will help showcase the deck or patio even on the warmer days. Finally, clean up any clutter. Garden tools and kids' toys need to be stored away.

4. Plant Color

Most landscapes in the San Diego area are beautiful but consider bumping up your yard to the next level with some pops of color. Native flowers, like Showy Penstemon and Brittlebush, are great to use since they will attract butterflies and honey bees. They also require little maintenance or water.something your real estate agent will be happy to point out at your first open house! Place a few pots of flowers around the patio or plant a row of them along the main walkway. The more colorful, the better to make your home stand out.

5. Hire Some Help

You'll have a lot of people walking through your home when you put it on the market. Make sure that your home is always clean and in top condition. Consider hiring some help with indoor and outdoor maintenance. Hiring a temporary housekeeper to come in once a week to keep things clean will be well worth the investment. A local landscaper can trim the lawn and pull any new weeds that pop up, making sure the yard's always looking pristine. A handyman can help by painting the front door and touching up the trim. Having your home ready at a moment's notice is essential to getting more showings and more offers.

 

6. Take Down Personal Items

Many real estate agents will tell you to take down the personal items within your home. Buyers want to picture their belongings in the house. Family photos and knickknacks should go into storage. Put a few pieces of furniture into storage as well to make the rooms look more spacious. Making your home inviting and warm is essential and easy to do with some generic items that could belong to anyone.

 

You want your home to be as green as possible to bring in as much green as possible! Proper landscaping can bring in as much as 12 percent more on that final offer. These six tips will help you sell your home fast and for top dollar.

 

Susan Mackey is an interior designer and home stager as well as a freelance writer who focuses on the latest home fashion trends. She loves taking older homes and turning them into the envy of the neighborhood.

 

 

 

 

 

Rachael Baihn

June
14

California housing affordability climbs in first quarter 2019, C.A.R. reports

 California housing affordability climbs in first quarter 2019, C.A.R. reports

  • Thirty-two percent of California households could afford to purchase the $545,820 median-priced home in the first quarter of 2019, up from 28 percent in fourth-quarter 2018 and up from 31 percent a year ago.

  • A minimum annual income of $114,860 was needed to make monthly payments of $2,870, including principal, interest and taxes on a 30-year fixed-rate mortgage at a 4.62 percent interest rate.

  • Forty-one percent of home buyers were able to purchase the $450,000 median-priced condo or townhome. An annual income of $94,690 was required to make a monthly payment of $2,370.
 1q2019hai
click to view

 

LOS ANGELES (May 14) – More Californians could afford to purchase a home in the first quarter of 2019 as lower mortgage interest rates and cooler seasonal home prices combined with higher income levels to improve California housing affordability, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) said today.

The percentage of home buyers who could afford to purchase a median-priced, existing single-family home in California in first-quarter 2019 rose to 32 percent from 28 percent in the fourth quarter of 2018 and from 31 percent in the first quarter a year ago, according to C.A.R.'s Traditional Housing Affordability Index (HAI). The index climbed above 30 percent for the first time in a year. California's housing affordability index hit a peak of 56 percent in the first quarter of 2012.

C.A.R.'s HAI measures the percentage of all households that can afford to purchase a median-priced, single-family home in California. C.A.R. also reports affordability indices for regions and select counties within the state. The index is considered the most fundamental measure of housing well-being for home buyers in the state.

A minimum annual income of $114,860 was needed to qualify for the purchase of a $545,820 statewide median-priced, existing single-family home in the first quarter of 2019. The monthly payment, including taxes and insurance on a 30-year, fixed-rate loan, would be $2,870, assuming a 20 percent down payment and an effective composite interest rate of 4.62 percent. The effective composite interest rate was 4.95 percent in fourth-quarter 2018 and 4.44 percent in first-quarter 2018. 

Housing affordability for condominiums and townhomes also improved in first-quarter 2019 compared to the previous quarter, with 41 percent of California households earning the minimum income to qualify for the purchase of a $450,000 median-priced condominium/townhome, up from 37 percent in the previous quarter. An annual income of $94,690 was required to make monthly payments of $2,370. Thirty-nine percent of households could afford to buy a condominium/townhome a year ago.

Compared with California, more than half of the nation's households (57 percent) could afford to purchase a $254,800 median-priced home, which required a minimum annual income of $53,620 to make monthly payments of $1,340.

Key points from the first-quarter 2019 Housing Affordability report include:

  • Housing affordability improved from first-quarter 2018 in 28 tracked counties and declined in 16 counties. Affordability in four counties remained flat.
  • In the San Francisco Bay Area, affordability improved from a year ago in every county. San Francisco County was the least affordable, with just 17 percent of households able to purchase the $1,532,500 median-priced home. Forty-six percent of Solano County households could afford the $430,500 median-priced home, making it the most affordable Bay Area county.
  • Affordability results in the Southern California region were mixed as only Orange and San Diego counties recorded an improvement from a year ago, while San Bernardino and Ventura counties experienced a decline. Affordability was unchanged in Los Angeles and Riverside counties.

  • In the Central Valley region, affordability held even from a year ago only in two counties — Fresno and Sacramento — and fell in three counties — Kern, San Benito and Stanislaus. Kings, Madera, Merced, Placer, San Joaquin and Tulare counties recorded improvements.

  • Housing affordability improved in all four counties in the Central Coast region, which includes Monterey, San Luis Obispo, Santa Barbara and Santa Cruz counties.

  • During the first quarter of 2019, the most affordable counties in California were Lassen (63 percent), Kings (57 percent) and Siskiyou (53 percent). The minimum annual income needed to qualify for a home in these counties was $47,340 or less.

  • Mono (10 percent), San Francisco (17 percent), Santa Cruz (17 percent) and San Mateo (18 percent) counties were the least affordable areas in the state. San Francisco and San Mateo counties required the highest minimum qualifying incomes in the state. An annual income of $322,480 was needed to purchase a home in San Francisco County, and an annual income of $323,010 was required in San Mateo County.

See C.A.R.'s historical housing affordability data.

See first-time buyer housing affordability data.

Leading the way…® in California real estate for more than 110 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States with more than 200,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.

 

# # #

CALIFORNIA ASSOCIATION OF REALTORS®
Traditional Housing Affordability Index
First quarter 2019

STATE/REGION/COUNTY

1st Qtr. 2019

4th Qtr. 2018

 

1st Qtr. 2018

 

Median Home Price

Monthly Payment Including Taxes & Insurance

Minimum Qualifying Income

Calif. Single-family home

32

28

 

31

 

$545,820

$2,870

$114,860

Calif. Condo/Townhome

41

37

 

39

 

$450,000

$2,370

$94,690

Los Angeles Metro Area

33

30

 

32

 

$509,000

$2,680

$107,110

Inland Empire

42

40

 

43

 

$365,000

$1,920

$76,810

San Francisco Bay Area

26

22

 

23

 

$885,000

$4,660

$186,230

United States

57

54

 

57

 

$254,800

$1,340

$53,620

 

 

 

 

 

 

 

 

 

San Francisco Bay Area

 

 

 

 

 

 

 

 

Alameda

25

20

 

22

 

$865,000

$4,550

$182,020

Contra Costa

37

33

 

36

 

$630,000

$3,310

$132,570

Marin

21

19

 

18

 

$1,250,000

$6,580

$263,040

Napa

29

25

 

28

 

$672,500

$3,540

$141,510

San Francisco

17

15

 

15

 

$1,532,500

$8,060

$322,480

San Mateo

18

15

 

15

 

$1,535,000

$8,080

$323,010

Santa Clara

20

18

 

17

 

$1,220,000

$6,420

$256,720

Solano

46

39

 

42

 

$430,500

$2,260

$90,590

Sonoma

27

23

 

21

 

$632,500

$3,330

$133,100

Southern California

 

 

 

 

 

 

 

 

Los Angeles

28

24

 

28

 

$548,630

$2,890

$115,450

Orange

24

20

 

21

 

$800,000

$4,210

$168,340

Riverside

39

37

 

39

 

$409,000

$2,150

$86,070

San Bernardino

50

48

 

52

 

$299,950

$1,580

$63,120

San Diego

27

24

 

26

 

$620,000

$3,260

$130,470

Ventura

29

29

 

31

 

$630,240

$3,320

$132,620

Central Coast

 

 

 

 

 

 

 

 

Monterey

25

21

 

23

 

$585,000

$3,080

$123,100

San Luis Obispo

26

22

 

25

 

$602,000

$3,170

$126,680

Santa Barbara

25

26

R

22

 

$596,000

$3,140

$125,420

Santa Cruz

17

12

 

15

 

$902,500

$4,750

$189,910

Central Valley

 

 

 

 

 

 

 

 

Fresno

48

46

 

48

R

$272,500

$1,430

$57,340

Kern

50

53

 

56

 

$245,000

$1,290

$51,560

Kings

57

50

 

52

 

$224,950

$1,180

$47,340

Madera

52

47

 

49

R

$260,000

$1,370

$54,710

Merced

46

40

 

43

 

$275,000

$1,450

$57,870

Placer

46

42

 

44

 

$480,670

$2,530

$101,150

Sacramento

44

42

 

44

 

$360,000

$1,890

$75,750

San Benito

31

28

 

32

 

$610,000

$3,210

$128,360

San Joaquin

43

38

 

40

 

$365,000

$1,920

$76,810

Stanislaus

47

45

 

48

 

$314,000

$1,650

$66,070

Tulare

51

47

 

50

 

$232,000

$1,220

$48,820

Other Calif. Counties

 

 

 

 

 

 

 

 

Amador

NA

NA

 

45

 

NA

NA

NA

Butte

34

34

 

41

 

$361,100

$1,900

$75,990

Calaveras

47

45

 

46

 

$320,000

$1,680

$67,340

El Dorado

40

42

 

42

 

$489,000

$2,570

$102,900

Humboldt

36

33

 

36

 

$312,500

$1,640

$65,760

Lake

44

40

 

40

 

$255,000

$1,340

$53,660

Lassen

63

66

 

68

 

$197,000

$1,040

$41,450

Mariposa

41

38

 

44

 

$310,000

$1,630

$65,230

Mendocino

28

23

 

25

 

$385,500

$2,030

$81,120

Mono

10

12

 

8

 

$775,000

$4,080

$163,080

Nevada

40

35

 

37

 

$402,500

$2,120

$84,700

Plumas

48

42

 

47

 

$280,000

$1,470

$58,920

Shasta

44

45

 

49

 

$284,000

$1,490

$59,760

Siskiyou

53

50

 

48

 

$199,500

$1,050

$41,980

Sutter

46

44

 

49

 

$295,000

$1,550

$62,080

Tehama

43

46

 

51

 

$257,500

$1,350

$54,190

Tuolumne

45

48

 

49

 

$304,500

$1,600

$64,080

Yolo

39

37

 

41

 

$432,500

$2,280

$91,010

Yuba

46

44

 

49

 

$289,000

$1,520

$60,810

R = revised
NA = not available

 

For release:
May 14, 2019

 California housing affordability climbs in first quarter 2019, C.A.R. reports

  • Thirty-two percent of California households could afford to purchase the $545,820 median-priced home in the first quarter of 2019, up from 28 percent in fourth-quarter 2018 and up from 31 percent a year ago.

  • A minimum annual income of $114,860 was needed to make monthly payments of $2,870, including principal, interest and taxes on a 30-year fixed-rate mortgage at a 4.62 percent interest rate.

  • Forty-one percent of home buyers were able to purchase the $450,000 median-priced condo or townhome. An annual income of $94,690 was required to make a monthly payment of $2,370.
 1q2019hai
click to view

 

LOS ANGELES (May 14) – More Californians could afford to purchase a home in the first quarter of 2019 as lower mortgage interest rates and cooler seasonal home prices combined with higher income levels to improve California housing affordability, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) said today.

The percentage of home buyers who could afford to purchase a median-priced, existing single-family home in California in first-quarter 2019 rose to 32 percent from 28 percent in the fourth quarter of 2018 and from 31 percent in the first quarter a year ago, according to C.A.R.'s Traditional Housing Affordability Index (HAI). The index climbed above 30 percent for the first time in a year. California's housing affordability index hit a peak of 56 percent in the first quarter of 2012.

C.A.R.'s HAI measures the percentage of all households that can afford to purchase a median-priced, single-family home in California. C.A.R. also reports affordability indices for regions and select counties within the state. The index is considered the most fundamental measure of housing well-being for home buyers in the state.

A minimum annual income of $114,860 was needed to qualify for the purchase of a $545,820 statewide median-priced, existing single-family home in the first quarter of 2019. The monthly payment, including taxes and insurance on a 30-year, fixed-rate loan, would be $2,870, assuming a 20 percent down payment and an effective composite interest rate of 4.62 percent. The effective composite interest rate was 4.95 percent in fourth-quarter 2018 and 4.44 percent in first-quarter 2018. 

Housing affordability for condominiums and townhomes also improved in first-quarter 2019 compared to the previous quarter, with 41 percent of California households earning the minimum income to qualify for the purchase of a $450,000 median-priced condominium/townhome, up from 37 percent in the previous quarter. An annual income of $94,690 was required to make monthly payments of $2,370. Thirty-nine percent of households could afford to buy a condominium/townhome a year ago.

Compared with California, more than half of the nation's households (57 percent) could afford to purchase a $254,800 median-priced home, which required a minimum annual income of $53,620 to make monthly payments of $1,340.

Key points from the first-quarter 2019 Housing Affordability report include:

  • Housing affordability improved from first-quarter 2018 in 28 tracked counties and declined in 16 counties. Affordability in four counties remained flat.
  • In the San Francisco Bay Area, affordability improved from a year ago in every county. San Francisco County was the least affordable, with just 17 percent of households able to purchase the $1,532,500 median-priced home. Forty-six percent of Solano County households could afford the $430,500 median-priced home, making it the most affordable Bay Area county.
  • Affordability results in the Southern California region were mixed as only Orange and San Diego counties recorded an improvement from a year ago, while San Bernardino and Ventura counties experienced a decline. Affordability was unchanged in Los Angeles and Riverside counties.

  • In the Central Valley region, affordability held even from a year ago only in two counties — Fresno and Sacramento — and fell in three counties — Kern, San Benito and Stanislaus. Kings, Madera, Merced, Placer, San Joaquin and Tulare counties recorded improvements.

  • Housing affordability improved in all four counties in the Central Coast region, which includes Monterey, San Luis Obispo, Santa Barbara and Santa Cruz counties.

  • During the first quarter of 2019, the most affordable counties in California were Lassen (63 percent), Kings (57 percent) and Siskiyou (53 percent). The minimum annual income needed to qualify for a home in these counties was $47,340 or less.

  • Mono (10 percent), San Francisco (17 percent), Santa Cruz (17 percent) and San Mateo (18 percent) counties were the least affordable areas in the state. San Francisco and San Mateo counties required the highest minimum qualifying incomes in the state. An annual income of $322,480 was needed to purchase a home in San Francisco County, and an annual income of $323,010 was required in San Mateo County.

See C.A.R.'s historical housing affordability data.

See first-time buyer housing affordability data.

Leading the way…® in California real estate for more than 110 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States with more than 200,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.

 

# # #

CALIFORNIA ASSOCIATION OF REALTORS®
Traditional Housing Affordability Index
First quarter 2019

STATE/REGION/COUNTY

1st Qtr. 2019

4th Qtr. 2018

 

1st Qtr. 2018

 

Median Home Price

Monthly Payment Including Taxes & Insurance

Minimum Qualifying Income

Calif. Single-family home

32

28

 

31

 

$545,820

$2,870

$114,860

Calif. Condo/Townhome

41

37

 

39

 

$450,000

$2,370

$94,690

Los Angeles Metro Area

33

30

 

32

 

$509,000

$2,680

$107,110

Inland Empire

42

40

 

43

 

$365,000

$1,920

$76,810

San Francisco Bay Area

26

22

 

23

 

$885,000

$4,660

$186,230

United States

57

54

 

57

 

$254,800

$1,340

$53,620

 

 

 

 

 

 

 

 

 

San Francisco Bay Area

 

 

 

 

 

 

 

 

Alameda

25

20

 

22

 

$865,000

$4,550

$182,020

Contra Costa

37

33

 

36

 

$630,000

$3,310

$132,570

Marin

21

19

 

18

 

$1,250,000

$6,580

$263,040

Napa

29

25

 

28

 

$672,500

$3,540

$141,510

San Francisco

17

15

 

15

 

$1,532,500

$8,060

$322,480

San Mateo

18

15

 

15

 

$1,535,000

$8,080

$323,010

Santa Clara

20

18

 

17

 

$1,220,000

$6,420

$256,720

Solano

46

39

 

42

 

$430,500

$2,260

$90,590

Sonoma

27

23

 

21

 

$632,500

$3,330

$133,100

Southern California

 

 

 

 

 

 

 

 

Los Angeles

28

24

 

28

 

$548,630

$2,890

$115,450

Orange

24

20

 

21

 

$800,000

$4,210

$168,340

Riverside

39

37

 

39

 

$409,000

$2,150

$86,070

San Bernardino

50

48

 

52

 

$299,950

$1,580

$63,120

San Diego

27

24

 

26

 

$620,000

$3,260

$130,470

Ventura

29

29

 

31

 

$630,240

$3,320

$132,620

Central Coast

 

 

 

 

 

 

 

 

Monterey

25

21

 

23

 

$585,000

$3,080

$123,100

San Luis Obispo

26

22

 

25

 

$602,000

$3,170

$126,680

Santa Barbara

25

26

R

22

 

$596,000

$3,140

$125,420

Santa Cruz

17

12

 

15

 

$902,500

$4,750

$189,910

Central Valley

 

 

 

 

 

 

 

 

Fresno

48

46

 

48

R

$272,500

$1,430

$57,340

Kern

50

53

 

56

 

$245,000

$1,290

$51,560

Kings

57

50

 

52

 

$224,950

$1,180

$47,340

Madera

52

47

 

49

R

$260,000

$1,370

$54,710

Merced

46

40

 

43

 

$275,000

$1,450

$57,870

Placer

46

42

 

44

 

$480,670

$2,530

$101,150

Sacramento

44

42

 

44

 

$360,000

$1,890

$75,750

San Benito

31

28

 

32

 

$610,000

$3,210

$128,360

San Joaquin

43

38

 

40

 

$365,000

$1,920

$76,810

Stanislaus

47

45

 

48

 

$314,000

$1,650

$66,070

Tulare

51

47

 

50

 

$232,000

$1,220

$48,820

Other Calif. Counties

 

 

 

 

 

 

 

 

Amador

NA

NA

 

45

 

NA

NA

NA

Butte

34

34

 

41

 

$361,100

$1,900

$75,990

Calaveras

47

45

 

46

 

$320,000

$1,680

$67,340

El Dorado

40

42

 

42

 

$489,000

$2,570

$102,900

Humboldt

36

33

 

36

 

$312,500

$1,640

$65,760

Lake

44

40

 

40

 

$255,000

$1,340

$53,660

Lassen

63

66

 

68

 

$197,000

$1,040

$41,450

Mariposa

41

38

 

44

 

$310,000

$1,630

$65,230

Mendocino

28

23

 

25

 

$385,500

$2,030

$81,120

Mono

10

12

 

8

 

$775,000

$4,080

$163,080

Nevada

40

35

 

37

 

$402,500

$2,120

$84,700

Plumas

48

42

 

47

 

$280,000

$1,470

$58,920

Shasta

44

45

 

49

 

$284,000

$1,490

$59,760

Siskiyou

53

50

 

48

 

$199,500

$1,050

$41,980

Sutter

46

44

 

49

 

$295,000

$1,550

$62,080

Tehama

43

46

 

51

 

$257,500

$1,350

$54,190

Tuolumne

45

48

 

49

 

$304,500

$1,600

$64,080

Yolo

39

37

 

41

 

$432,500

$2,280

$91,010

Yuba

46

44

 

49

 

$289,000

$1,520

$60,810

R = revised
NA = not available

June
14

A Profitable Investment: Growing Wealth Through Vacation Rental Income

A Profitable Investment: Growing Wealth Through Vacation Rental Income

 

The proliferation of sites like Airbnb, VRBO, and HomeAway has given the U.S. private accommodations market a boost, making vacation rentals a popular option for vacationers who want something more to choose from than a hotel. That's created a strong real estate market for first-time investors looking to grow wealth. It can be a highly profitable investment if planned and managed carefully. Here are some factors to consider if you're considering purchasing a vacation rental property:

Location!

Location is what it's all about in real estate. Deciding where to buy can make or break your investment. You've probably been on enough vacations to know where people like to spend their hard-earned vacation dollars. Focus on properties set among beautiful natural surroundings (i.e. the beach, mountains, forestland, etc.) and near intriguing amenities and sites, which can make a vacation property near cities like San Diego, San Francisco, Los Angeles or New York a great investment.

Financing your investment

Carefully assess your financial situation and your creditworthiness to determine whether taking out a second mortgage is a viable move. Pay particular attention to your income if you're taking out a second mortgage because lenders scrutinize debt-to-income ratio. Be realistic about your available income: Is it sufficient for a two-mortgage arrangement? The next step is to select your best financing option, whether it's a conventional or short-term loan.

Project profitability

Once you've identified a desirable vacation spot, assess its value to ensure that your investment is a risk worth taking. Take advantage of online home value calculators like this Penny Mac home worth tool to give you an accurate picture of the profitability of a vacation home. You need to know whether you can afford a vacation property during periods of vacancy, so pay close attention to both vacancy rates and rental rates in the area to determine whether your potential monthly income will be enough to ensure adequate profit.

Don't forget to factor in costs like property and rental income taxes, utilities, maintenance upkeep, insurance and homeowner association fees (you can keep insurance premiums down by bundling your coverage and installing a security system). If the numbers don't indicate profitability, it's probably in your best interest to look elsewhere.

Value added

Always bear in mind that you'll be in direct competition with other real estate investors, people looking to create wealth just like you, so it's important to look for a location with built-in advantages and to add appealing amenities. Spend a week in the community where you want to buy so you're familiar with what there is to do, including attractions, activities and great places to eat. Vacationers are looking for a memorable experience in a property that has a lot to offer - the more value you can provide, the more appealing you'll be to potential guests.

Property management

If, like many real estate investors, you need someone to look after the place, it'll be necessary to find a reliable and experienced property manager, or a property management company. A property manager will be responsible for everything from emergency repairs to keeping the place clean for your guests. Vacation rental property management companies charge based on their service level. You can defray some of that cost by looking for things to manage yourself, like cleaning, unless you're too far away to make that possible. 

A vacation rental can be a great investment if you're looking for a sustainable way to generate income and bolster your financial portfolio. Be diligent about location, and determine whether expenses, upkeep and projected occupancy rates add up to a truly profitable opportunity.

Courtesy of Pexels.com 

 

Brittany Fisher
Creator and Head Writer at Financiallywell.info
brittany@financiallywell.info 

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