Thinking About A Second Home?
The Current Market Is Allowing More Atlantan’s To Treat Themselves To The Solitude And Splendor Of A Second Home Or Vacation Home – With More Options And Better Deals Than Anytime In Recent Memory
Today there are over 7 million vacation homes in the United States. With interest rates extremely low and hundreds of very desirable vacation home opportunities within a 2-5 hour drive from Atlanta, your dream of owning a vacation home may be easier than you think.
Whether you dream of a mountain lodge or a beach house on the Gulf of Mexico or off the coast of South Carolina, there are many options to choose from, and Robert Whitfield can help you.
According to Walter Molony a spokesman for the National Association of Realtors (NAR), sales of second homes hit a new record in 2006, with over one million buyer purchasing vacation homes. In 2007, second homes and vacation homes accounted for more than 12 percent of all home sales. A NAR study found that the typical vacation home buyer in todays market is 46 years old, with a median annual income of $99,000.
“There are some great deals to be made in real estate right now,” said Molony, citing the large number of homes on the market, low interest rates and a 2.5 percent decline in home prices in 2007. “Buyers, especially financially fit baby boomers, are looking to diversify their portfolios. Historically speaking, real estate typically appreciates in value considerably over the years making it an excellent long term investment,” he said.
NAR reports that about 60 percent of vacation homes buyers choose locations within easy driving distance of where they live, with the average distance being about 220 miles, just a 4 to 5 hour drive. Because of Atlanta’s close proximity to the North GA and Blue Ridge mountains and even sections of the Gulf of Mexico, there are wonderful options that are anywhere from one to three hours away.
There has been a surge of interest in vacation home communities anchored among scenic natural settings, near a gorgeous mountain range, or the sandy beaches of a clear lake or sea coast.
Things To Consider Before Buying
Location, Location!
Select homes that are near outdoor recreation attractions and nature, especially those with or near breathtaking views – and homes where the return has been historically high. Properties along the Gulf Coast are popular with Atlantan’s and continue to have a great resale and return on investment potential.
Talk To Your Lender!
Lenders may require a larger down payment and charge a higher rate for second homes. To keep your costs down, you may want to consider financing a portion of your vation home with a home equity loan on your primary home. Home equity loans have lower rates than conventional mortgages. Robert can not only help you find a great vacation home, but refer a great home equity lender with some of the lowest rates around as well.
Check With Your Insurance Agent
Premiums for homeowners insurance for vacation homes are usually higher than your primary home, especially if you are far from a fire hydrant or fire station, or, you plan to rent the home out while you aren’t using it.
Consult With Your Tax Adviser
Have your tax adviser explain all the tax issues that pertain to a second home especially if you plan to rent it out, and if you don’t treat it as an investment property.
For more information, contact Robert Whitfield, Broker/Owner Advantage Realtors