By MARYANN HAGGERTY
Published: April 28, 2011
IT might be easier if you just paid cash for that vacation house.
There is loan money available for second-home purchases, but expect bigger down payments, higher interest rates and other standards tighter than on a principal residence — and those standards are tight already. In addition, there are quirks specific to vacation markets.
Vacation-home purchases accounted for 10 percent of home sales last year, according to a National Association of Realtors survey released this spring. Investment purchases accounted for 17 percent — but sometimes the line between the two is a bit blurry. That’s down sharply from the height of the real estate boom in 2005, when vacation and investment sales accounted for 40 percent combined.
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4 comments
May 3, 2011 at 5:11 am
ArrowCreek Homes
Michael,
We’re seeing the same trend with JUMBO loans out here in West — bigger downpayments, stringent rules.
I agree, it’s a bit blurry: “Vacation-home purchases accounted for 10 percent of home sales last year, according to a National Association of Realtors survey released this spring. Investment purchases accounted for 17 percent — but sometimes the line between the two is a bit blurry.”
I think the number is higher esp. with cash buyers/investors who’s steadily been investing since 2009.
-Joe
May 3, 2011 at 2:49 pm
jb
Just read in interesting article in Fortune about how new building remains really really low. Inventory levels are high now, but with rental prices starting to increase, they suggest potential buyers will start getting off the fence:
http://finance.fortune.cnn.com/2011/03/28/real-estate-its-time-to-buy-again/
How’s the rental market in the east end?
May 5, 2011 at 10:47 am
mike
WORD IS THAT RENTAL BUSINESS IS MIXED, AT BEST. LOTS OF AGENTS WANT TO SAY “OH, IT’S FABULOUS!’, BUT WE KNOW WHAT “FABULOUS” MEANS IN AGENT SPEAK.
May 15, 2011 at 8:46 pm
Financing a Vacation Home – New York Times | Ways To Sell
[...] than on a principal residence — and those standards are tight already. In addition, there [...] Hamptons Actual Estate Blog admin posted at 2011-2-11 Category: Real Estate Selling [...]