If you haven't taken out the equity in your house yet, you may want to consider buying that second home or vacation home with the money. There are a number of advantages to owning a second home and now is good time to think about it. Prices have come down in most areas and there are many bargains still to be had.

When deciding where to buy, please consider the following questions.

• How long would you like to own the home? If you are just planning on owning your second home for just a few years it may not be worth the investment unless you know for sure you can turn it around and make a profit from it. You are better off renting in the area for a few years if you don't plan on staying around for a while. On the other hand if you plan on having the house for more than 5 years you may actually make money by buying the house. The house will hopefully have appreciated somewhat in the last 5 years and you would of saved all that money you would of put toward rentals, hotels, or b&bs in the area.
  
• How often do you visit the area? Make sure you like the area before you buy. Frequent visits back to the same location will let you know if you really want to live in that area. You may find after 4 or 5 visits you really don't want to have your second home there.
  
• Can you see yourself retiring to the area? If you seriously love a place enough to buy a second home than there is probably a good chance you may be retiring in the area. Is there a hospital or good medical facilities nearby? If you are close to retirement this question may play a significant role in where you buy your 2nd home.
  
• How many times a year do you think you can get to your new home? If you plan on buying a house and you're not going to rent it out, make sure you are going to be able to use it a few times during the year. No sense in buying a house you don't get much use out of.
• Who is going to look after the house when you aren't there? If you are visiting every weekend or every other weekend this may not be a concern but if you are only getting there 6 or 7 times a year you may want to consider a management company to look after your property or if you have great neighbors you can trust that is even better. Management companies can check on your properties, hire cleaners, hire a company to cut your grass and any other service you may need.
  

If you have been seriously considering buying a new home now just might be the best time to buy considering the amount of homes on the market, low interest rates, and the current low sale prices on homes.