Housing Slump Actually Benefits
Vacation Home Owners
REAL ESTATE TRENDS, LOCATION MAKE WATERFRONT
LIVING A POPULAR INVESTMENT
Despite the highly
publicized downturn in U.S. real estate following the Freddie
and Fannie bailout and housing bubble burst, local homeowners
are discovering a silver lining in a stormy real estate market.
Falling interest rates and a burgeoning buyer's market have made
vacation home ownership more affordable and accessible than ever
before. Second-home properties, especially those located in sought-after
waterfront communities, tend to have a more stable appreciation
record and higher return on investment than traditional real estate;
not to mention coming with a tempting bonus: relaxation and rejuvenation.
As interest rates continue to drop in the wake
of the subprime mortgage crisis, consumers are finding it increasingly
affordable to invest in second-home vacation properties, an opportunity
few could have imagined just five years ago. Couple these low
mortgage rates with the increased supply of homes and developers
eager to attract potential homebuyers and the time appears ripe
for investing in second-home properties.
Waterfront properties in particular have become
major targets for second-home ownership. The proximity to the
water, opportunity for recreational activities and long list of
luxury amenities make waterfront communities highly attractive
vacation destinations. Steady demand has kept these scenic properties
largely unaffected by the plummeting home prices that have affected
inland areas.
National surveys report that nearly two out of
three baby boomers express a desire to live on or near the water
in their retirement years. That could amount to over 50 million
homeowners flocking to waterfront communities. As these individuals
reach financial maturity and approach retirement age in the coming
decade, demand for waterfront properties is projected to soar.
Despite this increased demand, rising fuel costs
and overdevelopment of coastal areas are causing vacationers to
look closer to home for luxury waterfront living.
And investors seem to agree. As consumer confidence
in the stock market continues to wane, homeowners are looking
for alternative investment opportunities that bring intrinsic
value as well as positive financial returns.
Southwest Michigan lake homes and waterfront real estate
investments in general fit neatly into that category.
Not only are home values projected to rebound steadily
over the next few years, but vacation home ownership offers an
incentive that stocks and bonds simply cannot deliver: an opportunity
to enjoy your investment with the people you care about most.
BACK
