Again from NAR: “Eight in 10 second home buyers considered it a good time to invest in real estate, compared with 57 percent of primary residence buyers. A surprising 55 percent of vacation-home buyers and 66 percent of investment buyers said they were likely to purchase another property within two years.
“Second homes are really something of a misnomer because a fair number of respondents buy multiple properties,” Lereah said. Eighty-six percent of vacation buyers purchased one vacation home, 12 percent purchased two homes and 2 percent purchased three or more vacation properties.”
What happens to this market when fractional real estate ownership is introduced and the consumer is educated to this opportunity to own multiple homes at a fraction of the cost, upkeep and hassle? Think big things… like appreciation, 4 homes for the price of one, and an incredibly mobile retiree population.
Point-of-sale financing works…
What are VF developer clients saying about our point-of-sale financing program? This from developer Keith Brennan: “I wanted to thank you again for the role Vacation Finance have played in Waterford Estates Lodge Condo Hotel in South Bend. As you know this project was an untested concept in an untested market. When we began marketing the project there had not been a university/sports themed condo hotel in any market. The fact that we were marketing this concept primarily to buyers who were not familiar with the condo hotel market made it an even greater challenge. Our initial experience with lenders claiming the ability and desire to finance our buyers was very disappointing with national lenders changing commitment and programs erratically and local lenders that did not understand the concept/underwriting of this type of loan.
In the early days, closings units with financing created significant problems for our buyers, our sales team and I believe, presented a major obstacle to successful execution of our strategy. Once the Vacation Finance team became involved the issues surrounding financing became moot. Your understanding of the condo hotel market and the needs of various parties involved in these transactions has given us confidence in our ability to close deals. We now exclusively recommend Vacation Finance.”
Auto Lease Interest Rate? Who Cares?
What interest rate are you paying on your auto lease? Ask 100 consumers, and most wouldn’t even guess that they are paying an average of 9.0%! $30,000 Jeeps are sold based on a $299/mo payment – sign & drive. Vacation Finance is headquartered in Detroit. We know a thing or two about the car business around here. In the 1980’s hardly any consumer would lease (rent) a car. But as the sticker price increased, even Detroit innovated its financing program. So why do we still sell a $500,000 – ½ million dollar – home? That’s an intimidating figure. Its an elephant to eat all those zeros, and you know how to eat an elephant? One monthly payment at a time. Contact us, we have a better idea for your sales program. info@vacation-finance.com
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