NAR's Second Homes Report Shows Investors, Others Still Buying
November2007
Vacation-home sales rose 4.7 percent to a record 1.07
million in 2006 from 1.02 million in 2005, while
investment-home sales fell sharply, down 28.9 percent
to 1.65 million in 2006 from a record 2.32 million in
2005. 14 percent… of all home sales were vacation
homes, up from a 12 percent share in 2005, the survey
found.
Vacation-home buyers
NAR reports the rise in vacation-home sales is based on demographic and lifestyle factors, with "only modest interest in renting their properties to others."
According to the survey, the typical vacation-home buyer in 2006 was 44 years old, had a median household income of $102,200, and purchased a property that was a median of 215 miles from their primary residence.
"The demographics favor vacation-home sales because large numbers of consumers are in the prime buying ages, and buyers want recreational property for personal use -- investment is a secondary consideration," Lereah said.
In terms of location, 29 percent of vacation homes were purchased in rural areas… with one-quarter of vacation homes were purchased in the Northeast…
Investment-home buyers
Investment-home buyers in 2005 were a median age of 39, earned an income of $90,250, and bought a home that was fairly close to their primary residence -- a median of 22 miles.
"The drop in investment prices comes as no surprise, but for vacation-home prices to edge down in a record market is a bit puzzling," Lereah said. "It may result from a large dumping of inventory on the market by speculators, especially in the condo sector, with long-term, second-home buyers taking advantage of the glut and buying at negotiated discounts. This underscores that housing should always be viewed as a long-term investment, providing solid returns over time."
Even with the cautions on speculative investment, 12 percent of investment buyers plan to sell in one year or less, although some may be adding value by renovating.
Published: May 1, 2007
The 10 Warning Signs of Predatory Lending
By: The Mortgage Bankers Association Updated: 4:09 p.m. ET April 1, 2007
Is someone misleading you about a loan and its costs?
The questions below are a good way for you to know if someone could be misleading you about a loan and its costs to you. Just because you answer “yes” to these questions does not mean you are or have been a victim of predatory lending. But, if you answer “yes” to some of the questions, we recommend you contact the appropriate state agency for more
information and guidance.
1. Were you encouraged to include false
information on your loan application?
2. Were you asked to leave signature lines or
any other important line-item of any form
blank? Did the lender or broker alter any
information you entered on your loan
application?
3. Check your loan file. Are any of the following
disclosures missing?
— Good Faith Estimate
— Special Information Booklet
— Truth in Lending
— HUD-1 Settlement Statement
4. Have you refinanced your loan several
times, and in each instance increased either your monthly payment and/or the total amount you owe on your home?
5. Do your documents reveal that your interest
rate calculation will change to require you to
pay “daily interest” in instances when your
payments are late?
6. Is your loan amount on the loan you obtained
higher than the value of the home?
7. Did you incur any unexpected costs at
settlement that were not explained to you
prior to the settlement?
8. After settlement, were you surprised to find
that the monthly payments on your mortgage
loan were higher than you anticipated based
on the initial disclosures?
9. If you have a balloon loan (one in which after
a series of low payments the entire loan
balance is due in a large lump sum) will you
need to obtain another loan to finance that
final lump-sum amount?
10. Were you required to buy credit insurance,
insurance that will repay the debt if you die
or become disabled? (Note: Credit
insurance is optional and will not affect your
loan decision if you decline to buy it. It can,
however, add considerable cost to the loan
transaction. You, not the lender, should
decide whether or not to add these charges
to your loan.
How many building elements of this home do you recognize?
Vacation-home buyers
NAR reports the rise in vacation-home sales is based on demographic and lifestyle factors, with "only modest interest in renting their properties to others."
According to the survey, the typical vacation-home buyer in 2006 was 44 years old, had a median household income of $102,200, and purchased a property that was a median of 215 miles from their primary residence.
"The demographics favor vacation-home sales because large numbers of consumers are in the prime buying ages, and buyers want recreational property for personal use -- investment is a secondary consideration," Lereah said.
In terms of location, 29 percent of vacation homes were purchased in rural areas… with one-quarter of vacation homes were purchased in the Northeast…
Investment-home buyers
Investment-home buyers in 2005 were a median age of 39, earned an income of $90,250, and bought a home that was fairly close to their primary residence -- a median of 22 miles.
"The drop in investment prices comes as no surprise, but for vacation-home prices to edge down in a record market is a bit puzzling," Lereah said. "It may result from a large dumping of inventory on the market by speculators, especially in the condo sector, with long-term, second-home buyers taking advantage of the glut and buying at negotiated discounts. This underscores that housing should always be viewed as a long-term investment, providing solid returns over time."
Even with the cautions on speculative investment, 12 percent of investment buyers plan to sell in one year or less, although some may be adding value by renovating.
Published: May 1, 2007
| “Don’t wait to buy real estate -
buy real estate and wait… There’s not going to be a depression unless we create it.” ~Mark Victor Hansen |
The 10 Warning Signs of Predatory Lending
By: The Mortgage Bankers Association Updated: 4:09 p.m. ET April 1, 2007
Is someone misleading you about a loan and its costs?
The questions below are a good way for you to know if someone could be misleading you about a loan and its costs to you. Just because you answer “yes” to these questions does not mean you are or have been a victim of predatory lending. But, if you answer “yes” to some of the questions, we recommend you contact the appropriate state agency for more
information and guidance.
1. Were you encouraged to include false
information on your loan application?
2. Were you asked to leave signature lines or
any other important line-item of any form
blank? Did the lender or broker alter any
information you entered on your loan
application?
3. Check your loan file. Are any of the following
disclosures missing?
— Good Faith Estimate
— Special Information Booklet
— Truth in Lending
— HUD-1 Settlement Statement
4. Have you refinanced your loan several
times, and in each instance increased either your monthly payment and/or the total amount you owe on your home?
5. Do your documents reveal that your interest
rate calculation will change to require you to
pay “daily interest” in instances when your
payments are late?
6. Is your loan amount on the loan you obtained
higher than the value of the home?
7. Did you incur any unexpected costs at
settlement that were not explained to you
prior to the settlement?
8. After settlement, were you surprised to find
that the monthly payments on your mortgage
loan were higher than you anticipated based
on the initial disclosures?
9. If you have a balloon loan (one in which after
a series of low payments the entire loan
balance is due in a large lump sum) will you
need to obtain another loan to finance that
final lump-sum amount?
10. Were you required to buy credit insurance,
insurance that will repay the debt if you die
or become disabled? (Note: Credit
insurance is optional and will not affect your
loan decision if you decline to buy it. It can,
however, add considerable cost to the loan
transaction. You, not the lender, should
decide whether or not to add these charges
to your loan.
Fantastic former 12th century chapel and priory for sale between Poitiers and Limoges in the Vienne region of France. The whole building extends to 450 sq m and is in good condition. Located in the village of Journet the property includes cellars, seven bedrooms, eight main reception rooms, a small library, bathrooms, kitchen, double garage and further attics capable of conversion. The chapel’s porch is registered as a Historic Monument. It has central heating and a security system. The grounds extend to some 3000 sq m and is planted with a range of trees etc. Price: Euro 385,000 = USD $526,192.25 ( Call Lauren for more information about who to contact in France. One note: if you buy it you have to allow the Kermode Team to vacation in the chapel for 2 weeks each year ) ☺ |
How many building elements of this home do you recognize?