Thursday, June 25, 2020

Are Vacation Homes a Good Investment?

If you haven’t been thinking about a second home or an investment property yet, this year has been bringing it to everyone’s attention. This brings a big question to the forefront, though, are vacation homes a good investment? Let’s take a look at some of the reasons a vacation home can be a great investment and a few things you will want to be aware of as you start to make these big decisions.

Investment Property vs. Vacation Property

One of the first things you need to figure out when deciding if a vacation home is a good investment is how the property will be used. An easy way to think about it is that a vacation property will primarily be used for your enjoyment. You can still rent it out occasionally should you want to, but there is a limit on how many nights it can be rented before it becomes an investment property. Investment properties are purchased with the intent to make money. You may still vacation in your investment property, but its primary function will be to provide a place for others to stay and for you to earn an income.

Once you decide what your intention with the vacation property at Lake of the Ozarks will be, you can now start to look at the advantages versus realistic expectations.

The Advantages of Owning a Vacation Home

If you have been to Lake of the Ozarks several times, you realize quickly what an amazing place it is, which may spark your interest in owning a vacation home here. Here are a few perks that come from owning a vacation home at Lake of the Ozarks!

You can write off a lot of your expenses - The specifics of what can be written off need to be discussed with your accountant or tax professional, but there are several items such as mortgage interest, mortgage insurance, depreciation, etc.)

You can make an extra income - if you use this property as an investment property, you can take advantage of the additional revenue stream that it can bring. This will depend on the time of year and location, obviously, but it can certainly be a lucrative step if you play your cards right.

You have a ready-made vacation destination - if you love vacationing at Lake of the Ozarks, it could be a really easy decision for you to get a vacation home here. You will easily have your own getaway spot, whether that is for personal vacations or as a place to host parties, friends, a family reunion, and more.

You have a potential retirement home - this is also a common reason and advantage to buying a home in a vacation destination. Not only will you have a nice little nest egg, but you will also have a place to retire to if you so wish. Vacation homes are considered a great long-term wealth investment, and even if you decided to sell the home later and use the cash to cover your retirement plans, you would be winning.

Realities to Be Aware Of

Obviously, with any new endeavor, there will be aspects of it that require more effort or could put you out a bit. Owning a second home, whether a vacation home or an investment property is going to require some additional time and resources from you - and you can’t determine that this is going to be a good investment without being aware of them.

Property management - One thing to consider when purchasing a second home, especially an investment property, is who will manage it. Either you will be making trips to the Lake after every guest to clean up and fix repairs, or you can hire a short-term rental property manager to care for your place. The average charge for a short-term rental property company is 15-40% which can eat through your extra income pretty quick.

You will have to find your own clients - unless, as mentioned above, you go through a property manager, you will have to market your vacation rental strategically on your own. This can include listing your home on the most popular platforms, making it look beautiful through staging, and even running occasional discounts.

You will need to afford the additional mortgage - it is said that if you can’t afford to pay the mortgage without the renters, you may not be ready for the investment. Having an additional mortgage on a Lake of the Ozarks home is going to be an additional responsibility. Not to mention all of the other costs and fees that are tied into owning an additional home.

Ready to Invest?

Whether you are aiming to make a good investment financially or emotionally - owning a vacation home at Lake of the Ozarks can be an awesome next step in your life. 2020 has been THE year for interest rates and home loans, so if you’ve been pondering the purchase, this is the year to make that investment and lock down an amazing rate.

If you still aren’t sure whether a vacation home is the right investment for you, it is said that 11% of the mega-wealthy consider real estate to be one of the top ways they made their fortunes. In fact, of all of the ways these ultra-rich individuals made their fortunes, real estate outpaced everything else 3 to 1. If you’re ready to make the investment, Team Lasson is ready to assist! Visit our website to submit an application and we will be in contact with you soon to get your pre-approval rolling.

For Lake area news, resources and tips on financial services, please 




Michael Lasson
Senior Loan Officer
NMLS #: 493712

4655 B Osage Beach Parkway
Osage Beach, MO 65065






**The postings on this site are my own and do not necessarily represent First State Bank of St Charles’s positions, strategies, or opinions.

Posted by at No comments:
Labels:
Location: Osage Beach, MO, USA

Thursday, June 18, 2020

How Much Vacation Home Can I Afford?

When purchasing a vacation home at Lake of the Ozarks, one of the first questions to ask yourself is how much can you afford to put into a second home. You already have a pretty good idea of the costs involved with your current home, but it’s important to not just look at the monthly mortgage payment. In addition to a monthly mortgage payment, you will also need to figure out the upfront home buying costs, the closing costs, and the regular homeownership expenses. Here is a quick overview of costs that come up through the start of your mortgage and how to prepare for these when you are purchasing your second home at Lake of the Ozarks.


Upfront Buying Costs

Your monthly mortgage payment is only one piece of the puzzle when you are figuring out how much you can afford to pay for a vacation home. A few of these are going to be the Inspection and Appraisal fees, the earnest money, and the down payment.

Earnest Money - this is your initial deposit on your home. It can be beneficial because if your offer is accepted, it can put weight behind your purchase. Also, if your offer is one of many bids, the earnest money put down could give you some advantages with the seller’s decision.

Down Payment - generally, the more you pay down, the better your mortgage rate can be. A 20% down payment is ideal, but down payments can be higher or lower than that depending on the loan program you qualify for and how much you have saved for the down payment.

Closing Costs

A good rule of thumb is that your final closing costs will typically range from 2-4% of the total loan amount. Here is a quick overview of what can be included in closing costs - depending on many factors:

  • Mortgage Origination Fees
  • Attorney's Fees
  • Inspections and Surveys
  • Title Insurance and Title Search
  • Recording Fees
  • Appraisal Fees

Expenses Associated with Homeownership

There can be many additional costs included with owning a home, some are obvious, some may get forgotten while you are working through your budget. It’s important to be informed on all of the costs of homeownership before committing, so let’s take a look at some of these:
  • Mortgage Insurance
  • Home Owner’s Insurance
  • Utilities
  • Repairs
  • Property Taxes
  • Home Owner Association Dues

Now is the Time to Buy

2020 has been a great year for both buying a home or refinancing your current real estate. If you have been thinking about buying a home, but you need to know how much you can afford to spend on one, let Team Lasson help! Visit our website, fill out an application, and we can get a preapproval ready for you. This will give you a good idea about how much you can afford to spend on a home. We look forward to assisting you through this exciting process and can’t wait to help you get the keys to your new vacation home through our mortgage services at Lake of the Ozarks.

For Lake area news, resources and tips on financial services, please 
Michael Lasson
Senior Loan Officer
NMLS #: 493712

4655 B Osage Beach Parkway
Osage Beach, MO 65065

Direct: (573) 746-7211





**The postings on this site are my own and do not necessarily represent First State Bank of St Charles’s positions, strategies, or opinions.












Posted by



at





No comments:
  


















Labels:
,
,
,







Location:
Osage Beach, MO, USA










          

        

          

        

Wednesday, June 10, 2020


          

        










Important Aspects of Interest Rates










Interest rates can seem a bit mysterious. It is an illustrious number that is created based on carefully curated aspects of your life. The interest rate can hold a huge weight, as it determines how much money you will be spending on your loan over the lifetime of it. Team Lasson believes that this is truly the best time to secure a loan or refinance your home. So we are covering a few aspects of interest rates that you may find very interesting.



Interest Rates Can Be Volatile
The thing about interest rates is that at any given point in the year, they can be high or low. This means that when the rates are low, you will want to take advantage of them! Within a loan that you already have, your interest rate will stay the same, so long as you do not have an adjustable-rate mortgage (ARM). 

Mortgages All Around
What makes mortgages so interesting is how many people have them. Having a home mortgage is not limited to certain classes or to people who only make a specific amount of money. In fact, it may surprise you to find out that even the very wealthy people still get mortgages on their homes. 

Income vs. Assets
It may be surprising, but the money that you make every month is more important than your assets. Obviously, having money in the bank can be a very helpful asset when buying a home, but when lenders are looking at the details that make up your financial situation, the monthly income is considered more stable than having assets.

Fun Facts About Mortgages
1. It was 1968, and mortgage rates were over 8.5%. For perspective, right now, a good average is in the 3.5% range (maybe a little higher or lower depending on factors). However, through 1967, the rates went down to 7% and homeowners were able to buy a home that was 15-20% larger for the same monthly payment!

2. As if the 60’s interest rates did not seem crazy enough, in 1981, mortgage rates reached 18.63%! If you are curious how that affected a monthly payment, a $300,000 home with a 30-year mortgage would be approximately $4,676 a month compared to roughly $1,347 a month now for that same property.

The average mortgage rate for the past 50 years is just over 8%, which is making the interest rates of today look REALLY good. 


Getting a New Mortgage or Refinancing
If you have been thinking about refinancing your home or purchasing a vacation home at Lake of the Ozarks, there truly is no time like the present. We have been busy keeping up with the current demand as so many are trying to secure the best interest rates they can, but we cannot imagine doing anything else!We are so honored to be serving Lake of the Ozarks with our mortgage services, as well as assisting home buyers on their journey to buying a new home. Visit our website to learn more about us, as well as fill out an application to get started. We can get a pre-approval ready for you, and this will make the home buying process so much easier. We look forward to welcoming you home!

For Lake area news, resources and tips on financial services, please 




Michael Lasson
Senior Loan Officer
NMLS #: 493712

4655 B Osage Beach Parkway
Osage Beach, MO 65065






**The postings on this site are my own and do not necessarily represent First State Bank of St Charles’s positions, strategies, or opinions.











Posted by



at





No comments:
  


















Labels:
,







Location:
Osage Beach, MO, USA










          

        

          

        

Tuesday, June 2, 2020


          

        










The Best Time to Buy a Lake Home










The question that is burning on everyone’s mind, "When is the best time to buy a Lake home?” There are many factors at play when it comes to choosing a time to buy, and they could depend on the market, what is available, and even the interest rates. Let’s take a look at some of these factors to help guide you into the best choice for you and your buying needs.

Things to Remember When Buying During Peak Season
There can be many highlights to purchasing a home during the peak season. For the Lake area, peak season runs from Memorial Day to Labor Day, with a little padding on the ends. One of the most popular reasons for purchasing during the peak season is because there are generally more homes on the market. However, this year is a little different. Not only are there often more to choose from during the peak buying season, but due to current events, the interest rates are fantastic. 

There are, of course, a few cons to purchasing a vacation home at Lake of the Ozarks during the busy Summer season. Greater demand can also bring more competition, and more competition can increase the price of a home. Homes also sell a lot faster during the peak season as everyone wants to get a contract on their favorite listing before any others do. You may also find the prices are higher during the peak season because of the higher competition. 

Things to Remember When Buying During the Off-Season
Off-season at Lake of the Ozarks is through the later Fall months into early Spring. Obviously, there is still traffic all through the year as different hobbyists and homeowners enjoy the quiet serenity of the Lake through those months, but it is definitely more toned down. Some of the pros of buying during the off-season are that you can generally get a home with very little competition. Most people are not thinking about buying a vacation home at Lake of the Ozarks during the Winter, so you should not have the same level of bidding wars during this time of the year. Purchasing a Lake home during the Winter also allows you to see what the area looks like when things are slower and more relaxed. Granted, with the holidays happening there is still a lot going on at the Lake, but it is certainly not like busy Summer weekends. 

Some downsides to purchasing a vacation home in the Winter can be as simple as not being able to tour the home when scheduled because of weather. Lake levels are also generally lower through the off-season and the wildlife and plants are hibernating, so the environment definitely has a different feel than it does during the hustle-bustle of Summer.

When Do You Want to Buy?
In the end, the best time to buy a vacation home at Lake of the Ozarks comes down to two things. 
  • When are you ready to buy?
  • What homes are available?

If you have the money ready, and there are a few homes on the market that look like they could be perfect for you, then NOW is the best time to buy! Team Lasson has been assisting so many homebuyers as they secure their dream vacation homes this Summer. Interest rates have been phenomenal, so if you have been considering the purchase of a vacation home, there is no time like the present. You can visit our website to learn more about us at Lake of the Ozarks or fill out an application to get started!

For Lake area news, resources and tips on financial services, please 



Michael Lasson
Senior Loan Officer
NMLS #: 493712

4655 B Osage Beach Parkway
Osage Beach, MO 65065






**The postings on this site are my own and do not necessarily represent First State Bank of St Charles’s positions, strategies, or opinions.











Posted by



at





No comments:
  


















Labels:
,
,
,







Location:
Osage Beach, MO, USA










        

      









Subscribe to:
Posts (Atom)