2017 was a banner year for real estate, equities, and many commodities. All over vacationland people saw sales numbers increase and values in many areas as well saw an upward trend. Many of us have lived through boom and bust cycles in the economy and wonder when this Bull Market will end and in wondering we wonder where to put our money and whether or not we should buy vacation property. With all that being said, I want to offer some thoughts on buying recreational property, whether that is hunting land, a seasonal cabin, lake home, or lake lot.
When we get to the end of our life we most likely won’t be concerned with how much money we’ve made or what our net worth is. We will be concerned with what kind of human legacy we left behind. Most of us aren’t buying vacation property as a monetary investment, instead we are buying a place of retreat to spend time and make memories with those we love. We want to rejuvenate surrounded by our family and the natural beauty God has provided for us. That is why buying a cabin or recreational land may be the best thing we can do with our money this year.
Many people talk about how gold has never been worth zero, while other investments can loose all their value. Well, real estate may go up and down but it too will always be worth something, because land produces natural resources like timber, gravel, or row crops. While homes provide needed shelter and we will always need food and shelter, but we don’t always need gold.
The long-term average on home loans is 8.15% and today we are nowhere near that. Even for seasonal properties and land, the rates are significantly lower. Many people lament the fact that they didn’t refinance their mortgages or buy a home when rates where in the 2s but instead of thinking “should’ve, could’ve, would’ve,” you can take advantage of the great rates that are available Today, because today is all we have.
Many of us have benefitted from massive increases in our stock portfolios, 401k, or IRA plans. As a result we are able to look at our entire financial picture and see that we are able to buy. We have also seen increases in our home’s valuation and have a manageable payment thanks to the historically low interest rates. So, if you are able to and your budget can comfortably handle it, dive in and get some vacation property, because with everything coming together the way it has and vacation property still being affordable it really may be the best time to buy, ever.