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Why Summer Can Be a Great Time to Buy a Vacation Home

Do you usually spend your summer vacation in or near the same location? Do you go there often, staying in a hotel or an Air B&B? Do you have to rent a car when you get there? Are you one of the many people who work from home and have the flexibility to work where you live? Do you have money to invest?

 

All of these could be reasons why buying a vacation home is right for you. Summer is a popular time to buy a vacation home, so if you’re ready to “go for it,” start the process NOW, and beat the competition. Owning a vacation home is an investment in your future and your lifestyle. If this is one of your goals this year, you still have time to buy and enjoy spending the summer in your vacation home.

 

How a Professional Can Help You Find the Right One

To get started, reach out to a trusted real estate professional. A local real estate advisor can help you find a home in your desired location. A professional has the knowledge and resources to help you understand the market, what homes are available and at what price points, and more. They can also walk you through all the perks of owning a second home and how it can benefit you.

 

More About Reasons to Buy

recent article from the National Association of Realtors (NAR) states, “… the top reasons that homeowners cited for purchasing a second home were to diversify their investments, earn money renting, and use as a vacation home.”

  • Save money. Invest in your future. If you have delayed trips for personal or health reasons, there could be a unique opportunity to use the flexibility that comes with the money saved while not traveling to invest in your future by buying a vacation home.
  • Earn money by renting part of the year.
  • Diversify your investments.
  • Make it possible to vacation in your favorite getaway spot more often.
  • Work from home. Live where you work. If you are one of many people who now work from homeand have added flexibility in where you live, why not work from the place where you like to vacation — the place where you want to live? You may be able to make it a second home rather than just the destination for a trip.

 

The Time of Year to Buy

The best time to buy a vacation home might depend on where and when you like to vacation. Is your dream destination on the beach enjoying the surf, in the south soaking up the sun when it’s cold at home, escaping the summer heat in a mountain cabin, being near to ski resorts lakes or hiking trails?

Avoiding peak seasons makes sense in supply and demand terms. Peak season is when the area in which you’re looking is at its finest. Aim for the final weeks of the high season to make your offer or hold off until just after peak season ends but start looking much earlier.

If you’re looking for a summer vacation home, the time between Labor Day and Thanksgiving is the perfect window of opportunity to close. You’ll still take possession early enough in the year to be able to get a glimpse of what future summers there will be like, and you’ll also have a chance to do any needed repairs before winter sets in. Then you’ll have winter to do what you need to do to make the place your own.

 

If you’re looking at a winter vacation home, spring is the best time to make an offer. While owners may still be renting or occupying their vacation homes, most will have placed their properties on the market. Just don’t wait too long to make your offer. Some owners board up their properties for the off season, making it harder to get viewings.

 

When the Time Is Right Financially

Before buying a vacation home, there are other considerations you need to think about. First and foremost is whether you will be able to use it enough to make it worthwhile for you financially. Even if you buy a vacation home and plan to rent it out to defray expenses, that means your time there will be limited. While you may love a cottage on a lake in fall, not everyone else does. If you can’t afford to spend the 4th of July at your own cottage, this may not be the time to buy.

 

You will have duplicate expenses. You’re going to need two of everything, unless you want to treat every weekend you spend at your vacation home like a camping trip. You’ll also have a second set of bills for property taxes, insurance, yard maintenance, internet, and cleaning costs.

 

On the other hand, if you’ve been thinking about buying a vacation home for a while, you know you can afford to invest in a second property, and you have long-term plans to use it as a home base while you travel in retirement, or you want your family to have the freedom of a cabin in great outdoors while they’re growing up, this might be the right time to make it happen. Your loan officer and real estate professional will help you make sure it’s a sound investment.

 

Demand for vacation homes is extremely high in certain areas, despite increased fears of inflation and rising interest rates, and the inventory of homes listed for sale remains at historic lows. Cash buyers can be a large percentage of the buyers in a second-home market. Ultimately, whether or not this is a good time to buy a vacation home depends on the market where you are looking.

‘Don’t Wait Too Long’

Those that plan to retire in a few years should consider buying now, before before prices and interest rates rise. There are zero predictions of prices dropping or crashing. Some buyers — especially those who live in areas with a high cost of living — purchase a vacation home or investment property in the area while renting their primary residence.

Good Returns on Rental Homes

If you’re interested in buying a vacation home due to the post-pandemic travel boom, you’re not alone.

Proactive real estate investors are purchasing a vacation home to earn some extra money. The average cash-on-cash returns of vacation homes make them a good intestment. Also, vacation homes are considered domestic leisure destinations, which makes them recession resistant.

 

To determine if now is the best time for you to invest in a vacation home, contact your Citywide Home Mortgage Team for expert loan advice. Call (866) 508-5515 or click on  [email protected] We can also connect you with a real estate professional who is an expert in the area and type of home you are looking for.

 

Sources:

Why Summer Is a Great Time To Buy a Vacation Home – Keeping Current Matters

Best Time to Buy a House: Best Month, Season and Why? | Zillow