Hackney's Houses

I've been saying it for some time now and will continue to do so as it is time to be investing in real estate for your future.  Historically low mortgage rates that I just can't see continuing to drop or stay around much longer...plentiful inventory...And sellers wanting to get their homes sold.  It's a wonderful equation as long as you don't get caught up in the emotional deer in the headlights roller coaster of everyone else. 

There is a rising trend recently in the purchase of second homes.  In 2006, vacation home sales rose nearly 5%.  The average buyer was 44 years old with nearly one third of those already making plans to make the vacation home their full time residence.

I have personally made a 2nd home purchase in La Paz, Mexico.  It's not a time share and offers full ownership.  International home purchases are also on the rise.

Below you'll find a list of 5 Beautiful Places to own 2nd home on a budget.  I've got contacts in all these markets and in La Paz.  If you are interested in any of these areas, or want to see if I've got a contact in my national referral list in an area you are seeking, drop me a line or give me a call.

5 Beautiful Places to Own on a Budget

1. White Mountains, Arizona

2.  Central Sierra Mountains, California

3.  South Padre Island, Texas

4.  Amelia Island, Florida

5.  Murrells Inlet and Surfside Beach, South Carolina

As a financial advisor for many years, I would joke with clients tongue in cheek that the best way to achieve financial success is to do the exact opposite of the rest of America.  Because of the enormous influence of the media and probably our natural tendencies as human beings, we tend to act like sheep when it comes to major decision making. 

The current real estate market is in many ways similar to the stock market of a few years back.  We all know to "buy low, sell high", but when push comes to shove and emotions get involved, that gets tossed out the window and people do the exact opposite.  Today's real estate market in our area is actually incredibly healthy and is offering buyers, whether first time or investors, incredible OPPORTUNITY!!! 

Phenomenal mortgage rates, plenty of inventory, and sellers who are freaking out that their house is sitting longer than two weeks on the market!!!  When it comes to negotiating a fantastic deal, this is called LEVERAGE, LEVERAGE, LEVERAGE!!!

If you are a first time buyer or looking to possibly pick up an investment piece, do be too quick to judge yourself and your capabilities.  Too many people just think they can't do it, yet never explore their options to see how easily they could make a purchase. 

Based on historics, which we know are cyclical, I know that your investment purchases now will be rewarded.

Here is a RE/MAX associates Top 10 Reasons on why It's A Great Time to Buy that I'd like to share with you....

Paul Pastore, a Platinum Club and Hall of Fame member with RE/MAX Achievers in Chandler, Ariz., shares his "Top 10 Reasons It's a Great Time To Buy."

Paul Pastore's Top 10 Reasons It's a Great Time To Buy:

1. Selection, selection, selection.
Regardless of price range, there are plenty of houses from which to choose. There's a great selection of attached homes, condos and townhouses. You can find large lots, small lots, and a lot that will accommodate your boat or RV. You have many options. When resale inventories are low, buyers are forced to make compromises. Not today.

2. No bidding wars.
In 2005, we knew one family who made offers on 10 homes. They lost the first nine to the feeding frenzy that existed in the market - other buyers bid the properties up substantially from the original listing prices. There were even escalation clauses where buyers authorized their agents to outbid other offers by thousands of dollars. There's no competitive bidding in the buyer's market of today.

3. You can make an offer.
A few years ago when you made an offer, the only question was how high above the list price you should reach in hopes of being the best offer on the table. Today the sell price vs. list price ratio is about 96 percent. Sellers won't be insulted if you "make them an offer they can't refuse."

4. Patience is tolerated.
In the hot seller's market, everything was rushed. You had to find a house before other buyers did, then hurry up and make the offer. Today, buyers can take their time. They can look at several homes and think about their decision for a while.

5. Due diligence is welcomed.
In this market, a buyer is encouraged to obtain a home inspection, termite inspection and appraisal. In 2005, many buyers waived these contingencies in order to gain an advantage.

6. Plenty of specs.
Buyers sometimes had to play games if they wanted a newly built home. There were lotteries and waiting lists. Some buyers even slept in their cars in order to get to the head of the line.

7. Repair requests are accepted.
After buyers complete a home inspection, they're allowed to submit a repair request to the sellers. But in the past, sellers often insisted the home be sold as-is. Many times, there were back-up buyers waiting for the primary buyers to upset the sellers, whose home was increasing in value almost daily.

8. Few, if any investors.
It's estimated that one third of all sales in 2005 were to investors. These buyers caused the market to inflate and affordability to decline. Mortgage fraud became commonplace. It's a great time to buy without having to compete with hundreds of prospective landlords.

9. Location, location, location.
Today's buyers can find homes closer to work. In this market, reasonably priced homes are within biking or walking distance to schools, rapid transit lines and relatives.

10. Real financing is available.
The "wink, wink" zero-down, no-doc, adjustable, sub-prime loans are gone. Fixed rates are back. FHA financing, first-time homeowner bond programs, and special loans for teachers or police officers are back in business. The bottom line: It's a great time to buy real estate!

Copyright © 2008 RE/MAX International Inc. 1/22/08