When is the best time to invest in a holiday home?
January will be coming to an end in a little over a week’s time. Being the first month of the year, people will often use most of their time making plans for the year. Is investing in a holiday home in your plans for 2021? Investing in a holiday home has several benefits but when is the right time to buy a holiday home?
1. When the property market is flat
When it comes to real estate, prices are often subject to change in holiday destination areas. This simply means available properties will cost more during the high season and when it comes to the low season, the prices go lower. There are several explanations for this including that during the low season, people do not have much money to spend on luxuries such as holiday homes. You could take advantage of such times to make a purchase on a holiday home as you are likely to get one at a great deal. Be sure to negotiate so as to get the best possible rates. Keep in mind that the risks are also lower when the market is flat compared to when the market is high.
2. When there are great lending rates
In many cases, people looking to purchase a holiday home will often need some financial help from lending institutions such as banks. It’s therefore, best to buy a holiday home during times when banks have upped their lending process to potential homeowners. This way you can get your funding with better interest rates. During these times when there are mortgage advances, you will be able to save more while you get the second home of your dreams.
3. When there are several holiday homes in stock
Due to the tough economic times following the pandemic, several homes have been put on the market. It’s something that happens a lot when the economy is struggling. This is great as it provides a variety for you to look keenly at and choose the holiday home of your dreams. Remember, a holiday home is basically a second home so you want it to have a lot of your favorite features inside and around it so that you feel comfortable while in it. During such times you will be able to get your money’s worth.
4. When you are financially stable
It goes without saying that you need quite an amount of money to purchase your dream holiday home. It’s a move that requires careful financial planning so it’s worth waiting till you are stable enough to pay mortgages consistently or to make that one-off purchase. Failure to this could see you lose the entire investment altogether. So, take time and monitor your finances, making sure all your investments are in place and that you can manage a good payment plan.
5. When you have done your research
It’s worth looking at different holiday destinations to see which place best suits your needs. Are you a beach person? Do you like the mountains or staying near rivers and lakes? Is the wild your favorite place to be in? Seeing that you want a holiday home, just like you would with your primary home, make sure it’s in the most suitable location for you. Is it near different amenities? How accessible is it by road? When you have conducted sufficient research on this, you are ready to buy your holiday home.
These five points will sure give you a hint as to when the best time for you to invest in a holiday home is. Once you have established this, feel free to contact us at Fractional Warehouse. We would love to guide you through the process of owning a holiday home.
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