Second Homes Offer Value - 08/27/09
For Immediate Release
8:00A.M. PT, August 27, 2009
Fredrick J. Bond, SVP/Mortgage Division Manager
(San Luis Obispo,
A survey from the National Association of Realtors (NAR) shows that 80 precent of second home purchasers say now is a good time to buy real estate. That's even higher than the percentage seeing opportunities in the market for primary residences. Typically people start thinking about owning a second home when they're in their 40's, and the market has been dominated by purchasers aged 50 to 59 in recent years.
Ten of millions of Americans are in that age group, and thos numbers will keep interest in second homes high in coming years, NAR predicts. Lenders generally expect second home buyers to have larger down payments than primary residence purchasers, however. A higher interest rate also may be charged when buying a property you won't be living in every day
Many vacation property buyers say they'd rather put their money in real estate now than in the stock market. Of course, they also look forward to spending time in their second home. Before considering properties it's important to be clear as to how you intend to use your second home. You'll make different purchase choices depending on whether you're going for a vacation spot or rental unit.