is summer capital of the Philippines best place to have a second home?
The dream of owning a vacation house is normal but today’s economic environment and the resulting real estate market pose some questions for anyone who wants to find a second home for summer vacations. For one thing, in the past decades, prices of homes have dropped instead of risen and home equities have consequently decreased so that many financial advisers would say it is a good time to buy. For another, except for retirees, two-income families generally have less vacation time than they used to have. This makes it important to consider how best to approach the search and acquisition of a second home for summer.
Weighing Cost against Actual Use
If you are buying a house and lot in Baguio City for vacations but are looking at it as a financial investment, then all you need to do is calculate how many years you need to wait before you can sell it. If, however, your main purpose for the purchase is to use it for summer vacations then a little computation is in order. Figure out how many weeks per year you will be using the second home and try to find out how much you would spend if you rented and compare this to how much you would pay in amortizations.
Some people would argue against such a pragmatic view of a vacation home for summer and say that the investment possibilities of such a purchase are only secondary to its family lifestyle benefits. Whichever way you view this summer place, the truth is that today’s low prices make it easier to buy this second home.
Choosing the Right Summer Home
• Figure out how you want to spend your summers. If you like to fish, then it goes without saying that you will want to be in an area where you can indulge in this pastime. If you like to go boating, then you should look for a piece of property by the coast or a lake. However, if you want a place where you can escape the heat and just enjoy cool weather, then you should consider real estate in Baguio City.
• Determine who you want to spend summer vacation with. You need to consider the preferences of family and friends whom you expect to take to this summer place. The destination must be fun for all concerned which is quite a challenge if you have people of varying ages. Perhaps consulting everyone would be a necessary step to take before deciding on what type of place to buy. Sometimes a compromise must be worked out when you have some family members wanting to go mountain climbing while others want amenities like shops and restaurants.
• Draw up your budget. This budget would of course include the cash you need to purchase the house or condominium in Baguio City or at least make a down payment. It also should include loan payments, taxes, insurance and maintenance costs. If you are going to buy this as a second home, then look at the tax deductions you can avail of and compare this to the deductions you would be entitled to if you rented the property some of the time. Lenders have certain rules regarding second homes so those must be taken into account too.
• Shop around for good bargains by keeping an open mind about locations. Some of the best bargains for summer homes are not where you envisioned them to be. The lower price will enable you to have a better margin of profit later if you can accommodate the adjustment in location. However, you do have to consider that for optimum use, you don’t want a place too far from where you live most of the year. Hence, a house and lot in Baguio City would be most optimal especially if you live in Manila.
Once you have decided on a place and have consulted both family and experts, you can go ahead with your plans. One last consideration though: think about the possibility of later converting this home into your primary residence. Many people retire and decide to make their summer home their primary residence. If you think this might be the case with you in the future, then choose real estate in Baguio City that you can transition to smoothly and factor in your space requirements – including the fact that you just may have visitors staying with you during summers. After all, the place was originally intended as a second home for summer.