Mobile Bay Real Estate: 5 Reasons Buying Vacation Home Is A Good Idea
With the stock market in turmoil, many people are looking for alternative investments. Most of us are scared to death of jumping into the market right now and wondering what to do with their nest egg...other than sticking it under the mattress.
Christine Karpinski, director of Owner Community for HomeAway.com (an online vacation home rental marketplace) and author of How to Rent Vacation Properties by Owner, 2nd Edition: The Complete Guide to Buy, Manage, Furnish, Rent, Maintain and Advertise Your Vacation Rental Investment, says buying a vacation home is an excellent home is a good investment right now.
Mobile Bay home values are down right now, but history shows they always rebound, making a vacation home a great long-term investment. Christine doesn't recommend buying with the thought of flipping it in a year, but buying as a long term investment.
You are probably asking why buying a vacation home is a good investment.
First, there are deals to be had. Prices are lower than a few years ago during the peak of the housing bubble. The excessive number of foreclosures is also keeping prices down and inventory up, making sellers more negotiable.
Interest rates also remain reasonably low, with rates hovering 6-6.5 percent. If you have good credit, there is mortgage money to be had.
Below are Christine Karpinski's 5 Reasons Why the Vacation Home Rental Market Is Holding Strong...Even in our Weak Economy
1. It's easy for consumers to find information on vacation homes. By visiting respectable websites travelers can quickly find the vacation home that's right for them. HomeAway's network of vacation rentals includes over 300,000 properties all over the world, making it possible for almost anyone to find one within a two- to three-hour driving distance from their home.
2. Vacation homes tend to be less expensive than hotel rooms. This is especially true if you're traveling with extended family or a group of friends. HomeAway recently contrasted a three-bedroom vacation rental private condo in Orlando with a popular three-star hotel and found that the condo was cheaper by more than $1,700! "That's a big difference, and in a tenuous economy it seems even bigger," notes Karpinski.
3. When airfare gets expensive, people start taking road trips instead. Even with gas prices relatively high, it's still far cheaper to drive a couple hundred miles to your mountain cabin than to fly to some lavish vacation destination. "Even with the bad economy, people need to take vacations," says Karpinski. "In fact, psychologically, they may need to get away more than ever. A fairly inexpensive stay in a nearby vacation home is the perfect solution."
4. The weak dollar makes U.S. tourist destinations attractive to European travelers, whose currency is still strong. "On my recent trip to Hawaii, I noticed a lot of German tourists," notes Karpinski. "And when I speak to many of the vacation homeowners I work with, they confirm that they've encountered a surprisingly high number of European travelers lately."
5. Business travelers still need a place to stay. When corporations must meet with business associates-who increasingly hail from overseas-they need good lodging solutions. Enter the vacation home. "More and more executives are putting their guests up in vacation homes instead of cramped, impersonal hotel rooms," notes Karpinski. "It's a far more comfortable option; plus many companies work out deals with homeowners whereby they can get ‘volume discounts.' It's a win/win for all parties involved."
Learn more about buying a Mobile Bay vacation home by visiting JudySells.com or give us a call, 251-990-0569.