As the summer vacation season winds down, many people are already envisioning what their 2024 summer vacations will look like, and where they will spend them building new memories with family and friends.
Others, even with higher mortgage rates and selling prices, envision owning property at their preferred vacation destinations.
If you are in the market to buy a dream vacation home now could be a good time, depending on your situation, to get started. Here’s why.
Demand is Still Strong
Coming out of the pandemic, many people have redefined how and where they want to spend their free time, while others have transitioned to remote work and want to combine where they work with where they live.
In many cases, those locations that were once considered vacation destinations have become primary residences.
Whether you are looking for a second home for your vacation destination or looking to be at the beach or mountains for your primary residence, you’ll have competition, which could lengthen your homebuying timeline.
Many Communities Only Allow Construction During the Offseason
If you already have a lot, or intend to purchase land to build on, you will likely need to have construction on a new home, or renovations, completed by the beginning of the 2024 vacation season. Many popular tourist destinations have moratoriums on construction during the busy season.
Drastic Rate Reductions Are Unlikely
If you are waiting on rates to plummet back to record levels, you won’t be buying your vacation home anytime soon. While rates could fluctuate and come down some, if the opportunity to purchase or build your vacation home presents itself and you can afford it, waiting on rate reductions could cause you to miss out.
You Can Take Advantage of a Full 2024 Rental Season
If you plan to help pay off your vacation home by renting it out during the prime summer season at the beach or even this winter in the mountains, you’ll want to have time to furnish the property, set up property management and maintenance relationships, and work with your accountant or tax advisor on potential benefits of renting your property out.
Whichever route you take to becoming a vacation home owner, proper planning and building an experienced team around you for the search process, obtaining a mortgage, and managing your investment is key. Speak with your mortgage lender, real estate agent and accountant or tax advisor to formulate a successful strategy and long-term plan.
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