Now is probably the best time to find a great buy on a North Georgia Mountain property. Prices on homes and land have come down from their highs of a few years ago. If you have always dreamed of owning a home up here in the beautiful mountains now is the time for you to make it happen.
The real estate properties up here have always been a great investment because of demand. People have discovered the fresh air, clean water, friendly people and the slower pace of mountain life. I promise once you arrive you will see why so many call this home.
The lending industry has tightened up and it is more important than ever for buyers to have knowledge of their finances, credit rating and ability to obtain a loan. Getting pre-qualified by your lender will help you negotiate the best deal with the seller. Information is power in any major purchase that you make for example many lenders now require buyers to put down at least 20 percent on a home or you will pay for (PMI) private mortgage insurance.
Using your vacation home as a short term rental is a great way to cover some of the expenses, but know ahead of time what the lender will charge you for interest if you choose this route. The lenders will also consider projected vacancy rates to determine if you will qualify for the loan. In addition, the home owner's insurance policy cost will be higher for a rental. Then there is the matter of a rental management company charging you a fee (up to 35%) to keep it rented, cleaned etc...
I recommend professional tax advice to determine if renting your vacation home makes sense for you. Also ask about the 1031 exchange opportunity. It is a super way to save on taxes when it comes time to sell your investment.
It may be the best time in years to buy and the timing is right for you to get a bargain up here, but the door will only be open for a short while. Don't let it switch back over to a sellers market before you buy.
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