Should You Invest In A Cottage?
26 October, 2020
Buying a Michigan cottage, an up north vacation location, is a dream of many that live in Michigan. Home to the Great Lakes, Michigan is also blessed with several bodies of water more inland, as well as the almost untouched and unspoiled beauty of the Upper Peninsula. Blessed with the option of driving north into basically a new state, many long time residents choose to vacation close, with generations of families sharing fond memories of their Michigan cottage. Because of the unique selling climate of 2020, you might feel like holding your assets close to your chest is the best option. But in reality, this may be the best time to buy the property of your dreams. Learn why, here and now.
The Perceived Housing Market Crash
There is this looming cloud that many financial people in the know continue to reference. They say it will be as big if not bigger than the crash of 2008, home values will plummet, and we will all be awash in our home loans that are now worth more than our house. Will this happen? Well historically, during election years, which we all know 2020 is, interest rates and the housing market in general tends to fluctuate. Interest rates are the lowest they have been in years, which bodes well for people looking to snap up a second property.
The Mortgage Moratoriums
In Michigan, there has been a freeze on payments regarding rent since March, which may end at the end of 2020. After this is over there will be thousands forced to make hard choices about where their money will be going. That might mean the second mortgage they took out to pay for their Michigan cottage, will be weighing more heavily on their wallets. Once banks start foreclosure proceedings, the timeline will quickly advance towards several homes on the market for less than normal value.
Second Home; First To Go
When people need cash, and with a sky-high unemployment rate people do need cash, the first item to go is an unnecessary second residence. Canadian citizens may even be part of the property dump, seeing as they cannot enter the United States for the foreseeable future. With those grim facts on the horizon, people are willing to part with otherwise amazing property. A seller’s quick loss can be your family’s gain.
Winter is Coming
This year’s market for Michigan cottages was red-hot. People sick of being cooped up in their respective residences, made a mad dash for water and serenity. After Labor Day, this selling season naturally wanes, and in a pandemic, even more so. As winter comes in, and in Michigan, it comes quickly, new cottages on the market no longer have the same competition. No longer will you be trying to outbid the highest, you may now be the only bidder. Use this to your advantage to really seek out what will be your dream set-up as opposed to your first option.
In the end, you can’t make more land. Michigan cottages will always be in high demand, but the conditions that have influenced the housing market of 2020, will hopefully never happen again. Take advantage now, if you are able.