There's no better time than now to buy that Vacation / Retirement Property in Delaware
The sales of vacation homes skyrocketed last year. A recent study also revealed that 25% of those surveyed said they’d likely buy a second home, such as a vacation or beach house, to use during retirement. For many Baby Boomers, the idea of finally purchasing that vacation home makes more and more sense as the economy improves and the housing market recovers.
If you are thinking about purchasing that second home, now may be the perfect time. Prices in Southern Delaware are still great. If you decide to lease the property until you’re ready to occupy it full time, the rental market in our area is always very strong. And you can still get a great mortgage interest rate.
Don't count on current mortgage rates lasting forever…
The interest rate for a 30 year fixed rate mortgage at the beginning of June was about 4.2%. However, FreddieMac predicts that mortgage rates will steadily climb over the next six quarters.
Let’s assume you want to purchase a home for $500,000 with a 20% down payment ($100,000). That would leave you with a $400,000 mortgage. What happens if you wait to buy this dream house?
Prices are projected to increase over the next year and a half. However, for this example, let’s assume prices remain the same. Your mortgage payment will still increase as mortgage rates climb to more historically normal levels.
The Rehoboth Beachteam combines 6 decades of trusted Lewes and Rehoboth Beach real estate experience. We have helped hundreds of buyers throughout the years. Please call us at 302.542.5534 or email to firstname.lastname@example.org with any questions about our area or the real estate market in general.