Tennessee Tribune Article

July 10-16

As summer turns some people’s thoughts to second homes, encouraging statistics about this market have been muffled under some of the negative news about the current housing market. According to National Association of Realtors 2007 Investment and Vacation Home Buyers Survey, second-home sales accounted for one-third of all existing and new-home sales in 2007. A large portion of those purchases were vacation homes. Why do families buy these “home away from homes?” The survey found that several factors go into the decision to buy a second home. Eighty-four percent of buyers wanted to use the home as a family retreat; 30 percent plan to use the home as a future primary residence; 26 percent want to diversify investments and 25 percent plan to rent to others.

Nashville is a great area to invest in real estate because home appreciation is moderate and there are many great investment opportunities in the area. From model home lease backs to purchasing duplexes or condos, there are several ways to obtain a positive cash flow in a rental unit. With interest rates at an all time low and an increase in home inventory in Middle Tennessee, purchasing a second home in this market would be a great investment.

When deciding to purchase an investment property it is best to contact a mortgage banker first, that why you know exactly how much your monthly investment will be. After contacting a mortgage banker and being pre-approved for a second home, locate a Realtor®, who can help you locate prospective investment properties and who will help you define the rental rates for the area that you are looking. You want to make sure that you will be able to obtain the right amount of cash flow for the property you will purchase.

If you are purchasing a second home out for state for a vacation residence or investment, make you sure you call an agent you know and trust in Nashville first, your agent should be able to help you locate a real estate professional in any part of the world to help facilitate the transaction while you are out of the state.

Denise J. Beard is a Real Estate Broker with Crye-Leike, Realtors in Nashville, serving the Middle Tennessee area. She can be reached at 615-373-3456 or at www.denisejbeard.com. If you have a real estate question or a topic that you would liked covered, please e-mail Denise at denise@denisejbeard.com.