Why Now May Be the Best Time to Spring for That Second Property, Vacation Home, or Getaway Pad
Let’s face it: 2020 wasn’t a good year for anyone. Yet that doesn’t mean there aren’t opportunities out there for the financially secure buyer that wants to add to his or her real-estate portfolio in terms of a vacation home or second property.
Whether you need to get away from it all or you want to potentially monetize a future asset that you enjoy from time to time, we’ve conducted some research as to why now might be the best market opportunity for you to make a move.
Naturally, a second home assumes you are in a stable enough position to handle such a financial obligation. If that is the case, there are multiple opportunities out there for you to explore in terms of maximizing your asset. Gone are the days of waiting for the future appreciation to kick in and here to stay are the sharing economy and a crowd-wary public.
- Rates are Low
Depending on your credit score and where you look for a loan (if you need one), rates are historically low.
Partially due to the economic crisis of the past year or so and also partly due to the continuing practice by many central monetary agencies of keeping rates low for years prior, getting a major loan for a second-property is more cost-effective now than at any point ever. If investing is seen as a combination of timing and opportunity, then this would appear to be the right moment to seize on that dream of a second home or vacation property.
- People Are Eager to Sell
Economic uncertainty often gives rise to a need for financial security for many people. One easy route to achieve this is to sell a primary or second home.
The only problem is that there is a reason this is a trend common to times of economic downturn: More than one person is doing it. Because multiple people are trying to cash out on a major asset like a house during an economic downturn, the market’s prices naturally dip reflecting the inflated supply of houses on the market. This is particularly prominent in major cities that have enjoyed boom years for the past decade and a half, but it is also common in vacation homes and other ancillary properties that are nice-to-have but otherwise monetizable assets during times of economic instability.
- Multiple Monetization Methods
Unlike in the past, investors now have multiple routes to take when it comes to renting out a home as a residence or as a vacation spot. Gone are the days of agencies and time shares with Airbnb and others taking this space and transforming it in less than a decade.
A vacation home could be a solid investment in the coming years if the trend towards shying away from large crowds and hotels continues after the COVID-19 pandemic has abated but, regardless, there will always be a market demand for vacation properties in tourist destinations and visitor-friendly locales.
- Self-Fulfillment
If you’ve always had the dream of owning a second home or a vacation property, and you are in the financial position to do so, then there is rarely such a time as now.
Why? You have the convergence of dreams with wise financial decisions – something that doesn’t often go together – and you should do yourself the favor and seize the day so to speak. Historically low rates combined with high volumes in many real estate markets means that you have the choice of some of the best properties out there and waiting could possibly cost you money in the future. Whether you look at it as an investment or just another asset among many, there’s no better time to buy than right now.
- Appreciating Vacation Home Values
One reliable aspect of the real-estate market that investors have turned to time and time again to help convince them of making a purchase is the reality that, more often than not, home values tend to trend upward. Combine this with low rates and you could transform a market steal into a savvy investment vehicle that also provides you with a place to get away from it all.