Looking to buy a holiday home in today’s market? Get ready to pay all cash

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There are many good reasons to buy a country house… First, if you can afford it, you will have a certain place to escape when you need a break from your daily life. Plus, a home can be a good investment. Over time, it can rise in value, at which point you can sell it for a profit.

The vacation home can also be another source of income for you. If you are willing and able to rent out this house on a short-term basis (with sites like VRBO and Airbnb, it is now very easy to do this), you can make enough money to cover certain home ownership costs, Such as:

But buying a vacation home in the near future can be challenging. For one thing housing inventory is extremely limited nationwide. As such, it can be difficult for you to find a home that suits your needs or suits your budget. Home values ​​have also skyrocketed over the past year, so you may find that your money can now buy a lot less.

But these are not the only reasons why it might be difficult for you to buy a vacation home. Many buyers these days come up with cash offers on vacation properties. And if you need help mortgage lender to fund yours, which unfortunately puts you at an immediate disadvantage.

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Cash buyers take over

Vacation home sales are up 16% in 2020 compared to 2019, according to the National Association of Realtors. And as of April 2021, suburban real estate sales have already increased by 33% compared to the previous year.

Meanwhile, more and more buyers are purchasing holiday homes with cash. In fact, more than half of the vacation homes purchased this year through April were made with cash, compared with 22% of all existing home sales in the same time period.

Sellers tend to favor cash offers over mortgage-backed offers because they are more reliable. A mortgage can always fail, even if a given buyer has already received preliminary approval… And even if mortgages don’t fall, they can take weeks to close. Cash transactions can be completed in less time, which is good for merchants who want to move quickly.

This does not mean that if you are looking for a vacation home right now, you will not be successful if you cannot pay with cash. But cash buyers have a significant advantage. So losing the house to a cashier shouldn’t come as a shock.

Once the inventory of housing is available, it will be easier to buy a home across the board, and that extends to vacation properties as well. But if you don’t buy money with cash, it may take a lot of patience in the near future to find a place to escape.

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