Why Buy a Second Home in Lake Placid and What to Consider
If you've been pining for a second home, you're not alone. In fact, vacation home sales rose 44 percent year-over-year in the third quarter of 2020 alone according to the National Association of RELATORS®. With mortgage rates still at historically low levels, now may be just the time, and we have just the place: Lake Placid. Here's why the second home market is booming and what you should consider before your next real estate purchase.
Should I buy a second home?
First, it's important to consider the pros and cons of buying a second home.
- A second home gives you an escape – If last year showed us anything it's how essential getting away from it all can be and a second home would give you that opportunity.
- Use as an investment property – While it's not as easy as HGTV makes it seem, if you have the skills or a partner who does, flipping an investment property can be lucrative in the right circumstances.
- Gain vacation home rental income – Some might consider this the best of both worlds; use the home when you want and earn money through rentals when you're away.
- It could be double trouble – You'll have double the costs for home insurance, taxes, utilities, maintenance, and so on. Not to mention flipping can be hard to oversee from afar.
- Could limit your wanderlust – If you love the freedom of traveling to new places, owning a second home could hamper that if you have limited travel time and need to get your money's worth from the property.
- Rentals can be risky– Vacation rental income certainly isn't guaranteed, not to mention you'll incur more cleaning and maintenance costs when you do rent. Plus, you'll need to know the local rental laws in the area as well as HOA rules or condo bylaws to make sure you're compliant.
Why Buy a Vacation Home in Lake Placid?
You may be asking, of all the locations in the country, why Lake Placid in the Adirondacks? There are so many reasons, we've actually written a blog on why you should move to the Adirondacks! But to start, Lake Placid is the perfect vacation getaway any season. You can experience amazing outdoor adventures in the summer and winter, quietly immerse yourself in the natural beauty of the area, and enjoy a lifestyle that recharges and relaxes you at the same time!
Second Home Mortgage Rates
Over half of all buyers use a mortgage to finance their second home according to the National Association of Realtors. Yet while the mortgage rates are currently low, as mentioned above, there are some differences from financing a primary residence.
What you should know about financing a second home:
- At least a 10 percent down payment is required
- Higher credit score requirements
- Higher mortgage rates than a primary residence yet lower than if the second home is a rental or investment property
- The property must be occupied by the owner at least part of year
We live, work and play here ourselves so you won't find an expert team who knows the Adirondacks and Lake Placid real estate market better. If you're considering renting your home, we can make it much easier than navigating the details and finding renters yourself. Learn more about our current vacation rentals in Lake Placid or contact our real estate team at Merrill L. Thomas, Inc to find your perfect second home today!