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Buying Vs. Renting: Vacation Homes

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Buying Vs. Renting: Vacation Homes

Buying Vs. Renting: Vacation Homes

The apartment rental season has been hot over the past few weeks, so I haven’t had much time to blog. Here is a guest post from Michael, director of sales at BOND New York. Have a great Memorial Day weekend! —Bruno, aka NYC Apartment Agent

NEW YORK — These past few days, the weather was beautiful in New York City. As I walked around Manhattan, I heard many people talking about their summer plans which involved either buying or renting houses in the Hamptons, the Jersey Shore or Fire Island.

In years past, you could buy a home at the beach by putting a small amount down (often less than 10 percent) and then finance the rest over 30 years. Conventional wisdom was that the payments worked out to be about the same every month as they would have if you had rented the property, but you had an appreciating asset.

Well, the good ol’ days of 2005-2007 are long gone.

The banks now require 20 to 30 percent down on vacation homes, jumbo loans (those of $730,000 or more) are nearly impossible to obtain on vacation homes or investment properties, and banks are taking a good, hard look at the buyer’s income to debt ratio.

As the article below describes, it seems as though conventional wisdom has done a 360-degree about-face and it may be time to rent your summer home this year.

I hope you enjoy the article as much as I did; I look forward to seeing you at the beach and as always, if you or someone you know is thinking about buying, selling or renting property in New York, please let me know.

NYTimes.com: Financing a Vacation Home

Financing a Vacation Home

Financing a Vacation Home

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Written by Bruno

2011.05.26 at 18:44

Posted in New York, real estate, sales

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