The Herron Team

Summer is finally here, here in the Northwest!  The Sun is warming our faces and our spirits.  This time of year a lot of people start thinking about vacations! 

If you have ever dreamed of owning a vacation home, there is good news.  Vacation home sales are up and with interest rates the lowest since Nixon’s time, it may be the time to take the plunge!  According to the National Association of Realtors (NAR), vacation home sales recovered in 2009.  NAR’s “Investment and Vacation Home Buyers Survey” indicates that in 2009, vacation home sales rose 7.9% nationally to 553,000, up from 513,000 in 2008. 

Prices for vacation homes are good as well.  You are more likely to get more home for your money.  In 2004 the average vacation home was $190,000 and hit a high in 2005 of $204,100.  Today those same homes are selling for the average of $169,000.   This all means, if you are purchasing a vacation home that you are likely to retire to, you may get a few extras that you would of missed out on a few years ago. 

Still not convinced!  Good prices, low interest rates, but you are still scratching your head.  Think about the added tax benefits.  If you take out a mortgage to buy, construct a second home, the interest is tax deductible.  If you rent out your home for 15 days or more per year, you can deduct your taxes, interest and operating expenses.  Talk to your tax professional about all the ways your vacation home can be working for you, in the “off season”.

If you have any questions about buying or selling a vacation home, please let us know.

Are you ready to make the move from Renter to Homeowner, or maybe your ready to “move up”.  Both of these are great decisions given all the new tax credits.  But you better hurry, the tax credits will expire April 30th!   If you are a first time homebuyer, this also includes those who have not owned a home in the past 3 years, you qualify for up to $8,000 tax credit.  If you are a “move up buyer” you must have used the home you are selling as your principle residence in the last 5 consecutive years of the last 8.  “Move up” buyers qualify for up to $6,500 tax credit.   Sound to good to be true?  Yes and No.  The tax credit does NOT need to be repaid if you live in the home for at least 3 years, move before the 3 years is up and you will have to pay it back. 

Are you ready to take advantage of these tax credits?  The Herron Team is available to assist you in lifes next move.  Give us a call or visit our website.