Recreation/Vacation If you’re thinking about buying recreation property or a vacation home, you’re not alone. The rate of second homeownership has jumped, as large numbers of Baby Boomers move into their prime wage-earning years. It is estimated that 6-10 percent of properties in the United States are second homes. That number is much higher in desirable vacation communities.
According to the U.S. Census Bureau, 32 percent of homes on Cape Cod are seasonal and prices have increased by more than 60 percent since 2000. Seasonal homes represent an even higher percentage on Cape May – 48 percent – and prices have increased by more than 70 percent since 2000, dwarfing the national average, which increased by about 32 percent.
The trend of second home/property ownership shows no signs of slowing. People in their 40s, 50s, 60s, and beyond are much more active than their parents. They’re seeking outlets for fun, and with two wage-earners at home who have more disposable income than ever, the trend of vacation real estate ownership will continue.
If you’re considering a recreational or vacation type purchase, where do you start?
► Location. Consider your personal tastes, interests, and hobbies when you’re choosing a second home or vacation property. For example, if you’re the type of person who thinks anything over a two-hour ride is long, you’ll have a fairly small geographic area in which to conduct your search. If you plan to use your recreation property for a couple of vacations every year and long holiday weekends, then you can extend your search to a larger radius. Many second homeowners purchase properties in their favorite vacation spots because they already enjoy the area and want to spend more time there.
► How much are you willing to spend? Prices can vary greatly. Up and coming communities are less expensive than established vacation hotspots which have seen explosive appreciation. Prices in these popular areas range from a home on the beach worth $1 million to the same-sized home a mile down the road worth half that price. Check current mortgage rates to get an idea of what your monthly payment might be. Don’t shy from jumping in the car and spending weekends looking for different vacation properties. Keep in mind, however, that other buyers may also be looking at the same properties that is drawing your attention, for the same reasons!
► Get more specific on your location. Is your dream vacation home near the lake or on the lake? Do you want to water ski on that lake? Is your dream vacation home a rustic cottage? Or is it property on a golf course? Perhaps it’s a ski chalet in the woods. Or would you like to build your own log cabin in a mountainous area? Or do you seek a quieter spot to kayak or fish? Or is the lake in the mountains so you can combine winter and summer sports? Is it in an area that is a plane ride away, but one in which you hope to retire? Maybe you wish to have Big Game Hunting or fly fishing near. This part of the process will take some time, but once you have narrowed the location down, be ready to make an offer. Often there are multiple buyers, and multiple offers on recreational properties.
► Contact Rob or Anise Morper. A terrific real estate agent can not only find you a great piece of property, but one that you can enjoy for many years. contact us !