To the list of the crazy things you’ve done on vacation–ride in strangers’ limos, get hitched–could another be in the cards? Say, shopping for Maine vacation rentals?
Maybe, but we’d hardly call it foolish.
According to The Boston Globe, prices for vacation homes in Maine have slipped nearly 16 percent. The trend is echoed in New Hampshire (27 percent decline) and Cape Cod (20 percent fall).
Could it be time to go on a vacation for your next vacation?
If you’re looking for an investment property or particularly fond of an area, the move makes sense. How many times have you visited the same house in the same region every year and said, “If only we had a home here?”
With mortgage rates still low, serious buyers could very well seize the vacation home of their dreams. As with any purchase, it’s crucial to take a sober look at the finances, determine needs versus wants and define the ultimate use of the property.
Will it be a retirement home or a source of rental income? If the latter, study the going rates in the area. The Bridgton vacation rental pictured lists for $2,100 a week, for example. Could you price yours for a similar rate and still have enough to cover your primary mortgage?
These are issues to consider during your “research” trip.
Somewhere in between the house hunting and talking to the lenders, though, make sure to squeeze time in for equally important tasks … like teaching your kids how to play croquet.