Living Easy in the Islands

There's nothing like owning a second home. I know because I'm fortunate to have one on an out island and I get a lot of enjoyment out of it. I spend just about every weekend there. Second home ownership may be daunting, but you couldn't ask for a better time to buy. Prices have fallen in the Bahamas' Out Islands in recent years because of the economy. If you're not in a position to consider another home purchase, think about buying a piece of vacant property with the intention of one day building a holiday cottage.

The prices probably won't get better and some of the banks are offering their lowest lending rates in a long time. I think property is still the best investment you can make. In addition, several vendors offer owner financing.

A home near a beach will serve as a great holiday get away, especially if you have children or grandchildren. It will save you time and money in terms of travel and accommodation and you won't get caught in the trap of paying exorbitant hotel rates or air fares during peak travel seasons.

And it can figure into your retirement plans, giving you a choice of a place to retire, away from the hustle and bustle of the “city.”

Many homeowners make their second home their primary home when they retire, selling their primary home. The money from the sale provides a tidy retirement nest egg.

Now, having said that, owning a second home is a big financial responsibility. You have to pay for the upkeep and someone has to look after it, call a plumber, mow the grass, and board it up in the event of a hurricane and so on.

You can rent the home to help offset costs, but it's unlikely it will actually cover your costs when a large mortgage is involved.

However, if you are able to do it, nothing beats having a home away from home.

(Mike Lightbourn is president of Coldwell Banker Lightbourn Realty)

* Your leading Bahamas real estate source.