This time of year is when many homeowners begin preparing their homes for winter weather. Some homeowners choose skip winter all together by escaping to a vacation home in a warmer climate. For those without a vacation home, now is the time to stock up on winter supplies; however, if you’re tired of shoveling snow, pre-heating the car, and bundling up before going anywhere, now may be the time to consider looking into a vacation home.
Taking advantage of the equity in your current home could help you in affording a second home. According to a 2018 Equity Report from ATTOM Data Solutions, “Nearly 14.5 million U.S. properties (are) equity rich — where the combined estimated amount of loans secured by the property was 50 percent or less of the property’s estimated market value — up by more than 433,000 from a year ago to a new high as far back as data is available, Q4 2013.The 14.5 million equity rich properties in Q3 2018 represented 25.7 percent of all properties with a mortgage.”
This means that over a quarter of Americans who have a mortgage would be able to use some of their home equity to make a significant down payment toward a vacation home, and many are doing just that! According to the same report by NAR, “33% of vacation buyers purchased in a beach area, 21% purchased on a lakefront, and 15% purchased a vacation home in the country.”
Many homeowners who are close to retirement will use some of their equity to purchase vacation homes, which may eventually become their permanent homes post-retirement!
Key Point
If you are a homeowner looking to take advantage of your home equity by investing in a vacation home, contact an us to discuss your options!