Spoil the Family with A Vacation Home!

Invest in a vacation home, and with just a couple hour drive you can be worlds away from the center of activity in Los Angeles. Opportunity abounds living in a metropolis like Los Angeles. This is one explanation for the greater LA area’s population of nearly 19 million and counting. Even for those of us that love living in this city and for those with a love-hate relationship with LA, we have all had those moments when you just want to get away from it all. We’ve all had those moments when you think you can’t drive another mile in stop and go traffic, or race another driver for the one open parking space, get another alignment after driving over the magically reappearing pot hole or overhearing one more conversation about someone obsessed in the quest for their 15 minutes of fame.

All things being equal, real estate is a great place to invest your money. There is not much room left in LA to make your fortune flipping properties. But if you go in for a little longer haul, as investments go, real estate provides a chance to earn a substantial return on your investment, tax benefits, a potential stream of revenue, growing equity, relatively low risk for high reward, insurable security, predictability, stability and even emotional rewards and riches like the joys of bonding with family, immediate and extended, making memories and providing comfort and security for our loved ones.
It is so easy to get caught up in day to day living and forget about what is really important and rewarding.


vacation home loan

So many people as their lives move forward acknowledge their regret for not having insisted on making time to be with and enjoy their family and friends, and really being present and available when they did spend that time together. We often hear people talk about some of their fondest childhood memories being vacations and family trips that hold fond and nostalgic memories and stories and the photos that bring us back to that spot. Today, because of expense, travel delays and concerns, time limitations, outside social obligations and plans, and sometimes just procrastination, many families and couples, or one time travel companions who shared a sense of wanderlust, have not been on a vacation or trip for years at a time.

It is amazing that within a 200 mile radius or just a couple hour drive outside of Los Angeles, there is such a varied range of geography, cultural diversity, endless recreational options, phenomenal weather and the feeling that you have traveled to some other world or distant location, exotic destination and steadily increasing property values with still amazingly low interest rates to finance their purchase. Now is your chance to make a sound financial investment. Buy a vacation home located at a destination that accommodates your personal preferences and pleasures. You can have a place to go to on holidays and weekends that is close enough to entice not only your nearly grown children or grandchildren, but also extended family and friends and their families. You have removed the inconvenience, expense and uncertainty of a long trip while you still feel relaxed and fresh. You have discovered how to jump off the hamster wheel and get away to adventure, new views and a different energy then we are accustomed to as Angelinos while still having all the comforts of home and a sense of community and knowing our neighbors, (possibly better than our LA neighbors).

Depending on your likes and dislikes, your hobbies or guilty pleasures, there is no end to the options in terms of the destination of a second home so nearby for those of us from Los Angeles. If you like the mountains, snow sports, hiking, water sports, you might think about a charming A-frame cabin in Big Bear or Lake Arrowhead. You like the desert, swimming or laying out by the pool, warm nights and barbequing as the sun comes down, golf, tennis, resort living, new age thinking, a growing arts community, you consider yourself a “foodie” or even enjoy a night out at the club or casino? What about a condo or townhome in Palm Springs or Palm Desert?

Maybe you want a place near the beach or on the strand, or boating is your thing. Ventura/Oxnard area is a mere 45 minutes outside of LA and just about that same distance from beautiful Santa Barbara and their artist community, their film festival that is growing every year in popularity and reputation and the growing number of wineries in the area. Santa Barbara is considered to have some of the greatest restaurants and chefs in the country that were first attracted to the popular wine country farther north in Sonoma. Ojai and their resorts and new age retreats, festivals and acclaimed artists is right up the way.

Maybe you are more attracted to the feel farther south like San Diego with Mexico right next door, great deep sea fishing, scenic views, and the attractions of city life and the Old Globe Theatre, one of the best zoos in the country, and a much more relaxed pace then LA. There are so many options, and in every way you will have invested wisely. Work with a professional realtor who will listen to your wants and needs and then secure your financing with a reputable loan broker like Elite Financial in Westlake Village, California.

If you’re looking to buy a vacation home, spend time figuring out what a vacation home purchase investment may involve. Even though it is a great investment, without reasearch it is very easy to realize owning a second home is no holiday. Here are two major factors to consider when you have decided to buy a vacation home.

Expect Stricter Mortgage Requirements when buying a second home.



Over half of of vacation-home buyers have a mortgage . If you plan to purchase a second home, prepare for more scrutiny from banks than you did when you purchased your primary residence. A low fico score could increase the mortgage rate drastically, require a larger down payment, or prevent a loan approval altogether. Just like buying a primary residence, speak to your local mortgage professional as soon as you can. They can help qualify you for the maximum amount, plan for unexpected circumtances, and find you the best mortgage rate. Mortgage brokers are great at finding the best deals. Elite Financial in Westlake Village, CA has over 25 years of experience that can guide you through the loan process.

As a very basic guide, you will qualify for the best mortgage rate if you have a fico score higher than 700 or could possibly obtain a mortgage loan that has a rate of one percent greater than the best rate possible.

Cost of Insurance



Again, like your first mortgage, many of the items needed to buy your first home as well as getting your loan approved will be needed with your second home purchase. One item is home owners insurance. Depending on where your looking to purchase, you might have to purchase flood
insurance or even earthquake insurance. Therefore, if you are purchasing in southern California, a local mortgage broker is the first person you should speak with. They often have relationships with insurance agents who are familiar with the area’s ins and outs.

The Insurance Information Institute says, if you plan to use your vacation home only for yourself, getting an insurance policy may be as simple as extending the policy you have for your primary residence. However, If you want to rent it out ever so often buy a separate rental dwelling policy. It can cost about 25 percent above your primary home’s policy. On average, a rental dwelling policy can reimburse the loss of rental income during the time you can’t rent it out for repairs. Again, talk to Elite Financial as they know several insurance agents who can provide you with details.