by Caroline Kirby
Depending on where you live, you’ve likely spent the better part of 2020 being stuck inside. Couple that with historically low mortgage rates and a change of scenery, and it’s no surprise that we’re all itching to get out of the quarantine bubbles we’ve been in. The desire to get out has led many to look at buying a vacation property.
Have you found yourself scanning real estate in your favorite vacation areas only to pull back and wonder if now is even the right time to make big purchases? There’s a case to be made for purchasing vacation property at this time; let’s look at why.
Although real estate is typically regarded as a sound investment, the Covid-19 pandemic and its effects on society and the economy have left many wondering if that still stands true. However, if you plan on keeping this new property for the long-term, it’s worth looking at the pros of making the purchase.
• Low Interest Rates: While the economy is expected to go through a few cycles in the coming years if your family has income stability, then making a purchase on a second home makes sense. With the right financial strategy in place, it could be a smart move. Discuss your options with your realtor and financial planner before making any big decisions.
• Supplement Costs by Renting: Do your research before relying solely on rentals for income, but just as you’re looking to get out, so are many others. If your vacation property is in a place with light travel restrictions, then with the right precautions, you could realistically rent out your place when you’re not using it. And don’t forget about the tax advantages if you rent!
• A Change of Scenery: As many people are able to work remotely or are schooling virtually, it may be nice to have a change of scenery and work or study from your vacation property. Additionally, if you live in a city or a highly-populated community, finding a vacation spot that is a little more isolated could also be comforting for those that are social distancing.
• More Space: Going off of the point above, many households are finding that they’re more crowded full-time with both partners now having to work from home. If that’s the case for your family, you know how important it is to have some space to get your work done and live comfortably.
• Off-Season Purchases May Yield a Deal: Many popular vacation areas were prohibited from renting short-term in an effort to help stop the spread of Covid-19. If you look at purchasing during off-peak tourism season, you may be in a better position to snag a deal.
These four reasons are a good introduction to why buying a vacation property is a good idea. However, know that vacation homes across the U.S. have been selling fast as many people are finding that they can work from anywhere while also hoping to get out of the cities where they live.
There’s no harm in looking— browse through LandHub.com’s current listings to see what’s out there!
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