Jeffrey Brown
speaker
36 appearances
1 recordings
1 series
first heard Sep 2017
last heard Sep 2017
Jeffrey Brown’s voice in public audio — every appearance, attributed to the second.
Trend
recordings per month · last 12 monthsNo recordings in the last 12 months.Older appearances are listed below; set an alert to hear about the next one.
Appearances
Well, the people I interviewed, most of them suggested that you buy because it's a place you really want to have.
You want to have it for vacations or maybe for a retirement home someday.
They cautioned against buying a second home purely as an investment, unless you're really a pro at this and you know what you're doing and want to spend a lot of time working at it.
I think the common denominator from the people I interviewed was being overly optimistic about finances.
So people buy a home and they look at the big costs, the mortgage, the down payment, taxes and insurance and things like that.
And then they look at the rental rates and they say, well, if I can rent it 15 or 20 weeks a year, I'll make money on it and pay for my vacation home.
And what actually happens is that the costs are higher than that because you have breakdowns and repairs and cleaning and maybe a fairly high
commissions for brokers who get you renters and that sort of thing.
Even the online outfits that people rent through now can charge pretty high fees.
So the big mistake is not counting all of those things in and then overestimating the rental income.
You assume if you can rent it half the year, you'll make a lot of money, but you may not rent it half the year.
There are renters who bow out at the last minute.
or weeks that just don't appeal to people.
It's difficult to get the money right, and you need to have a big buffer to make these calculations work.
Well, the people I talked to suggested finding a hot location, obviously, a place that people want to go.
So if you're looking for a winter location, Florida is a good place because you can be fairly assured of warm weather in Florida, whereas some of the other southern states you can't.
but you also need to look at the competition on the market.
So if there's a huge building boom going on, it may mean there'll be a glut of vacation rentals and you won't get the rental income that you're counting on.
It needs to be all of those things, plus a place that you want to go yourself if you're going to use it as a personal vacation place and not just as a rental property.
Well, this is right.
Showing 1–20 of 36 · page 1 of 2
Next →