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Would you purchase a vacation home before your primary residence?

It is not very common to see buyers in our market purchase a vacation home before their primary residence, but according to an article by Anna Bahney in CNN Business, with median home prices in cities like New York and San Francisco hovering around $1 million, some first-time buyers are choosing to remain renters in their home city an buying a vacation property in a more affordable area instead.

Why people are buying vacation homes — before they’ve even bought a first home

Second homes aren’t just for the very rich.

With median home prices in cities like New York and San Francisco hovering around $1 million, some first-time buyers are choosing to remain renters in their home city and they’re buying a vacation property in a more affordable area instead.
“I’m seeing this more and more,” said Svetlin Krastev, an investment advisor with Black Sea Gold Advisors, in Kingston, New York. “People want to have exposure to real estate, but it would take all of their assets to get a residence in the city.”
Bart Higgins, founder of an innovation consultancy firm, rents a four-bedroom converted warehouse in Brooklyn’s Fort Greene neighborhood with his wife and twin five-year-olds. The couple pays $5,300 a month.
“If I was going to buy that, it would be between $2 to $3 million,” he said. “I would have to manifest $600,000 in cash. I can’t get my head around it. I can’t find a way to rationalize that burden.”
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