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Earlier this week, it was reported by the National Association of Realtors vacation and investment home sales decreased to 30% of total home sales in 2008 due to tightening credit, the declining real estate market and the recession. Interestingly, more than four out of ten investment buyers, and more than three in 10 vacation home buyers paid cash for their properties, according to NAR. Paying cash usually equates to a lower purchase price, therefore, it appears there are some financially savvy investors out there taking advantage of the opportunities created by the steep decline in the real estate market. NAR stated that a large percentage of the buyers indicated that portfolio diversification was the reason for their purchase.
The article is available at http://www.realtor.org/.
In 2008, 30% of all home sales were for investment or second homes, down from 40% in 2005, the peak year for the real estate market. The time to buy financial assets is when everyone else is selling. If you have ever wanted to own a vacation or an investment property, now may be a good time to further research this opportunity.