There are Plenty of Reasons to Buy a Second Home at the Beach
Buying a home while prices are sliding is not an easy decision. After all, you never know when things will bottom out. But if your goal is to have a second home for your family to enjoy and then use it as a retirement home in five or ten years, and you can afford to buy now, today’s tepid housing market may offer a great opportunity to put your plans in motion early. Here’s why.
First, home prices won’t weaken forever, and they most certainly will be much higher in 10 years. Waterfront and resort properties and those with spectacular views- just the features you dream of for a retirement home – can be expected to rise the fastest. Yet for even prime properties in today’s market, competing bids are rare, and sellers are eager to deal. You have bargaining power and you have time to research your purchase. Mortgage rates remain low for those with good credit. Equally important: a cottage in the mountains or a house on the beach where you plan to spend the rest of your days doesn’t have to be subjected to the same rigorous evaluation as other investments. In theory, your retirement house won’t be sold until you are not here to worry about it anymore. You are buying a lifestyle not a bond.
Such thinking resonates with millions of people in their 40’s, 50’s and 60’s who are keeping the second-home market alive. Last year, even as sales of primary residences fell, vacation-home sales rose nearly 5% says the National Association of Realtors. The typical buyer of a vacation home was 44; a third of those people said they plan to move to their home fulltime later on.
No need to be rash however. The whole point of buying in a soft market is having the time to think things through. Here are some reasons that buying a vacation home now to live in later makes sense for you:
ROOTS: When you buy before you’ve retired, you start making the area part of your life right away. This helps to build a social network, which will ease the transition when you move in your home fulltime.
FAMILY CONNECTIONS: Kids grow up and change jobs and cities. One way to bring the entire family together more often is by living in a fun and familiar house in a great location.
YOU CAN RENT TO OWN: In the long term, prices are going to go up. By not acting soon, you risk eventually being priced out of the market. If money is tight, consider buying now and collecting years of rent to defray your costs. Many homes remain too expensive for this plan. But for the first time in years, home prices have slipped enough in some regions for the math to work. The trick is getting over our fears. With retirement facing all of us sooner or later, now is the time to buy and enjoy a vacation home.
Susan B. Garcia
Prudential Carolina Real Estate
Isle of Plams, SC 29451
843-886-8110
The thoughts on this website do not necessarily reflect those of Carolina One Real Estate.
Prudential Carolina Real Estate | 877-663-3456
1400 Palm Blvd Suite E, Isle of Palms, SC 29451
info@palmettobeaches.com