Investment Properties. Before making a commitment to invest in a second or vacation home in Asheville, here are a few things you may want to consider
1. How lenders see a primary residence as compared to and investment property ( one you as a borrower will not occupy.) This property generally needs to be at least 50 miles away from your current primary residence. “Owner occupied” or “ non-owner occupied” are definitions that do have some flexibility ( EX: This may not be the case in terms of a condo.) But, in any case, the underwriter needs to feel comfortable that it is indeed a second or vacation home.
2. Higher Risks? As you know, investment properties pose higher risks to banks. And probably, there will be an interest rate that reflects that risk.
3. Time Constraints. There are also time constraints to consider. For example, “Borrower shall occupy, establish, and use the Property as Borrower’s principal residence within 60 days after the execution of this Security Instrument and shall continue to occupy the Property as Borrower’s principal residence for at least one year after the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonably withheld, or unless extenuating circumstances exist which are beyond Borrower’s control.... “To quickly and easily assess investment property mortgages, you may wish to review the Investment Property Mortgages information pages at Freddie Mac.
4. Cost Outlays: Expenses for insurance, maintenance, utilities, security and marketing is substantial if you are aiming for a serious return on your money.
5. Location. Location, Location. According to MSN Money, Asheville tops the list of 10 Best Places to buy a second/vacation home. “Looking for vacation property that’s a good investment as well? These communities offer weather, scenery and active real estate markets,” says this report..
AND-- there’s nothing like Asheville and a view like this from your hot tub.
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