Maybe you’ve been coming to the shores of Lake Michigan for years and are finally ready to take the plunge and purchase a place of your own. Or perhaps you’re a local resident looking to take advantage of the high demand for seasonal accommodations. Purchasing a second home can fulfill a variety of personal and economic goals, and, as property values stabilize, now is a great time to do so.
However, any home is a major purchase, and—especially if you consider your purchase an investment—care should be taken to ensure you’re making the best choices when it comes to location and financing. In this part one of this series, we'll explore reasons why many buyers choose to purchase a second home.
Still on the fence, read more about things to consider when buying a second home.
Key Factors to Consider When Buying a Second Home – Part I: Reasons to Buy a Second Home
If you’ve ever vacationed along the Lakeshore, you probably don’t need a reason for wanting to purchase a second home in one of these idyllic communities. But if you are still on the fence, consider the following motivations and financial incentives for investing in a vacation property or second residence in Northern or Western Michigan.
Awash in beautiful summer homes and a beloved destination for vacationers from the Midwest and beyond, vacation may be the top reason for purchasing a second home.
If you are looking for a way to ground your annual tradition for your family and generations to come, purchasing a vacation house can create a home away from home, and a place where you, your children, and your grandchildren can make memories that will last a lifetime.
More than having a place to gather with family or simply get away from the daily grind, purchasing a vacation home can make economic sense. Instead of paying someone else to stay in their property, your dollars can generate more value by being invested in an appreciating asset—one that can be handed down and enjoyed by future generations.
Read more on where to buy a vacation home in Michigan: Top Lakeshore Destinations.
With stock market uncertainty, many investors are considering investing in real estate for its near-guaranteed returns and tax advantages. In fact, in the past 20 years, sale prices of homes have nearly doubled, a value increase of nearly $170,000 on average once inflation is factored in.
In addition to appreciation, an investment rental property can be a good passive income source—one that can offer the added benefit of doubling as your own vacation home. According to Bridge Michigan, vacation rentals currently average about $400 per night in Traverse City or Williamsburg, $450 a night in Charlevoix, and $368 a night in Frankfort.
Your vacation/investment property can serve an additional role: retirement residence. If you are looking to downsize in the future and relocate to a more idyllic location, leaving behind the hustle and bustle of your current life, a vacation home on the shore can become the perfect place to do just that. A natural draw for grandchildren, ensure regular visits from family while living out your retirement years the way you’ve always dreamed of living.
Beyond its scenic beauty, Michigan’s Lakeshore can be a wonderful place to retire full-time or part-time. Walkable towns, local dining and shopping and breathtaking views make our shore towns wonderful places to call home.
Considering the life of a snowbird in your retirement? Local airports, including Gerald R. Ford International Airport in Grand Rapids and Cherry Capital Airport in Traverse City, offer nonstop and connecting flights to many sunny destinations, including Miami, Orlando, Tampa, Houston, and Phoenix.
Buy a Second Home in Michigan Today
If you are considering buying a second home along the Lakeshore, we can help. Our lenders are familiar with local real estate conditions, know our area’s premier real estate agents, and have years of experience finding cost-effective solutions for both Michigan residents and welcomed visitors looking to invest or put down roots in our picturesque region.
Ready to apply for a home loan? Want to discuss your options? Speak to a West Shore lender today—your dreams of owning a second home could be closer than you think!