The Latin adage, caveat emptor, which translates ‘let the buyer beware’ is exemplified by a recent article from the Inman News Service. It chronicles the tale of second home buyers who were sadly surprised when arriving for their first winter stay at a remote mountain cottage, that the fireplace insert they had assumed stayed with the cabin, in fact, did not. Beyond reaffirming that buyers should take nothing for granted, unless it is stated in the sales contract, it also brings to mind the old saying about the word ‘assume’.

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Look, up in the air, it’s a bird, it’s a plane, no it’s Richard Branson, piloting his new start-up, Virgin Money USA.

In his new venture, daredevil adventurer, businessman, and philanthropist Branson has taken the plunge into the U.S. real estate market. For anyone who has followed Branson’s storied career, it should come as no surprise that he would jump into a housing market that is still falling. They laughed when he launched Virgin Airlines as a low cost no frill carrier serving the UK to US market. Other brash entries into other markets have been similarly ridiculed at the outset. The unlikely success of his many risky ventures has defied many of the naysayers. His new business model is designed to take advantage of the current downturn in the U.S. housing market and the resulting mortgage and credit crisis that is making buying properties more difficult.

Is this guy delusional, or, as he has often been in the past, a visionary? See for yourself in this article from Realty Times that details Virgin Money, USA and what it offers to both buyers and sellers of U.S. properties.

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House flipping has been getting a lot of attention in the media lately, and most of it is definitely not kind. Many investors who took out multiple loans to purchase properties intending to flip them, ended up getting stuck when the market started to stall. Many of the properties purchased by these investors are now in default or have already been foreclosed on.

But house flipping has been around for longer than the current boom-bust cycle. People have been buying fixer-uppers cheap, fixing them, and then reselling them for decades. It was looked on as an honest way to make a living. You’d find a nice neighborhood that had one or two properties that were run-down and often vacant (many times the owners had passed away and the heirs didn’t really want anything to do with the property). They were considered eyesores by others in the neighborhood. You’d track down the owner, make them an offer, and purchase the home at a good price. Then you’d go in and remodel the place to meet the needs of the current market. Then you’d sell the home for a nice profit, maybe $10,000 or so. The neighborhood came out a winner because it got rid of the eyesore and increased everyone’s property values.

For more on this type of house flipping, click here for an article from Minneapolis Real Estate Blog.

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With more and more baby boomers swelling the ranks of retirees in the U.S., health-related home amenities are on the rise. Many of the newly retired boomers plan very active retirements and are choosing to live in communities that offer a wide variety of recreational activities. In many cases, they are outfitting their homes and vacation getaways with exercise equipment. The New York Times has an article on the phenomenon.

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If you own or are buying a second home, you should be aware that, as written, current tax laws encourage second home ownership by allowing deductions for mortgage interest, property taxes and other expenses on vacation homes. The Washington Post offers a detailed look at how buying and owning second homes can result in tax benefits.

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