Thanks to aging Baby Boomers, the market for vacation properties is hotter than ever. But before you start shopping, here are some things to consider.
Location. Obviously, it’s got to be in an area you love. But make sure it’s also easy to get to. If it’s more than three hours away or involves bad roads or unpleasant boat trips, chances are you won’t use it often.
Reason you're buying. If you are buying for personal use, buy where you want to be. If you’re buying for capital appreciation, look for local market growth potential. And if rental income is the goal, make sure the property’s in a popular area.
Seasonality. If your property depends on seasonal recreation, keep in mind that you’ll occasionally be disappointed. Ski cabins can suffer through snowless winters, and beach houses are prone to rain. Also, make sure roads are plowed year-round and ferries run in the off-season.
Cost. Obviously, a lot in the woods is less expensive than a beachfront condo. But building on your lot isn’t necessarily cheap (count on about $150 per square foot). And even if you buy an existing cottage, there are ongoing costs for maintenance, repairs, taxes, supplies, and insurance. Renting when you’re not there or fractional ownership can reduce the cost, but they can also impact financing.
Financing. In the past, purchasing a vacation home meant higher interest rates and less flexibility. But today, specialized lenders offer vacation home mortgages at mainstream rates, and if you have strong credit, you may even qualify for 5% down. However, many of the most affordable mortgages require year-round access and well/septic systems, and they don’t cover rental properties or fractional ownership.
Are you thinking about buying a vacation home in the next 12 months? If so, I invite you to call me so we can determine if this is the right time to buy, what type of properties fit within your budget and whether or not it’s worth the investment. As your mortgage professional, I have access to a wide range of vacation home mortgages and can provide you with the advice you need to avoid costly mistakes. Call me today at (905) 529-1199!
Lisette Amalfi Harris, AMP
Senior Mortgage Consultant/Owner
Mortgage Alliance o/a OAC Mortgages Inc
(905) 529-1199
TF: (877) 529-1199
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Mortgage Alliance Oac Mortgages
As a registered franchise of the Mortgage Alliance Network, we have a number of mortgage professionals who can bring you the choice, convenience, and counsel you need to get the RightMortgage®. Working with over 40 lenders (some offered exclusively through brokers) we'll provide unbiased guidance in your mortgage decision.
We are legislated by the Ministry of Finance FSCO and our brokerage license is 10928.
We are dedicated to educating our clients about their mortgage! We want you to be well informed and comfortable with the mortgage you have and the options available to you. This blog is intended to offer information, updates, current mortgage products and current rates.
Please provide your feedback and let us know if there is anything else we can provide to help you in your mortgage process.
We are legislated by the Ministry of Finance FSCO and our brokerage license is 10928.
We are dedicated to educating our clients about their mortgage! We want you to be well informed and comfortable with the mortgage you have and the options available to you. This blog is intended to offer information, updates, current mortgage products and current rates.
Please provide your feedback and let us know if there is anything else we can provide to help you in your mortgage process.
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