Why Second Homes are Getting Smaller and Smaller

When it comes to second homes for the affluent, you’re going to come across a lot of luxury homes for sale – especially small ones! But why is that? Here we’re going to talk about why smaller homes are showing up in some of the most exclusive communities and what you can do to make sure you snag one. Always remember, you really do get what you pay for, so if you see something about a timeshare or a deal that seems too good to be true, it probably is. Make sure you work with a luxury realtor that understands the area, the market and your needs as a buyer before you put down money on a home.

Less is More When it Comes to Oakville Real Estate

While most of us have gotten used to bigger and bigger homes, sometimes less is more! Many Baby Boomers are looking for homes that are more manageable, economical, and in better locations. This is like many developers to build smaller 1500 ft.² or less homes in resort areas – places where exclusivity is at a premium, but there’s just no bigger lots left to build on. They’re targeting the “spendthrift affluent”; this might seem a little bit of a misnomer, but more and more people are realizing that they have to save something if they want to be comfortable in retirement.

Built to Ease Tension

The reason that these new homes are smaller, however, isn’t just about saving money. Many resorts and exclusive communities are trying to find ways to maximize profits by selling more land, but without upsetting current residents who paid much more for their property. These may be billed as “retirement cottages”, “vacation cottages”, or vacation houses; but whatever they’re called they do pretty much the same thing: provide desirable housing in desirable locations without upsetting current owners and their property values.

Smaller Homes Don’t Bring Down Sales Prices

Imagine if you paid $1.5 million for your home: you probably wouldn’t be very happy with somebody paying $500,000 next-door, would you? By selling smaller homes near beautiful golf courses and amenities, developers are able to get the most bang for their buck without freaking people out. First-generation homes appraisal values remain high, new people get to move into the area, and the developers make more money. Everyone pretty much wins in this situation.

Cabins and Cottages the Thing to Watch

With more and more Canadians getting into the real estate game, especially the luxury real estate and luxury homes for sale market, cabins and cottages may just be the thing to watch. Baby Boomers want to maintain the current level of amenities that they’ve become accustomed to, and they’re not going to go gently into the dark night of the nursing home either. Talking with a luxury realtor or luxury real estate agent in your area can help you understand the investment opportunities locally and nationally. Make sure you do your research, understand the risks, and talk with a professional before you think about investing.

By Brad Miller of The Goodale Miller Team. Goodale Miller, located in Oakville, Ontario is the #1 team in Canada for Century 21 8 years running, specializing in Oakville luxury real estate.  To learn more visit http://www.goodalemillerteam.com

What Mortgage is Right for Your Luxury Real Estate?

Whether you’re just starting out, middle aged or nearing retirement there are different mortgage options that will work best for your luxury real estate. Here we’re going to explore how to finance homes for sale that you want to buy and how to figure out which is right for you. Let’s get started!

Luxury Home Still need Financing!

While you might be buying luxury real estate, you’re going to still need that down payment and financing available for it. It’s not always a smart move for your credit to pay outright with cash, even if you can afford to. You’ll also slowly build equity in your home that you can borrow against as time goes on. If you want something that you can build and borrow against, you can never go wrong with luxury real estate.

First Time Homebuyer

It’s always exciting being a first time homebuyer! There are many luxury homes for sale right now and you can get great deals… but how are you going to finance it? The best kind of mortgage for a young or first time home buyer is going to be a low down payment long term (20 to 25 year) conventional mortgage – you should always put down the MAX possible amount when you buy real estate, this way your payments will be lower and you’ll be able to pay off faster. The mortgage rules changed in 2012 to a max length of 25 years, which is more than enough time to pay off your mortgage.

Middle Age and Home Hoppers

If you want to buy luxury real estate (especially if you’re upgrading from a different kind of home), you’re going to want to look at your current situation. Do you own your home outright and just want to find a new home? If so, you can take out a home equity loan (second mortgage) to buy your next home – once your current home sells you’ll be able to pay it off and you won’t be stuck in the same house until you can sell it.

Retirement Mortgages

If you’re buying luxury real estate prior to retirement, opt for a shorter repayment term. You’ve been saving all that money all this time for a reason! Most Baby Boomers and older have been taking out 15 year fixed rate mortgages more now than ever before. With interest rates so low it’s a great time to finance luxury real estate.

Whatever you do, it’s important to be aware of your options. If you’re just starting out a long term fixed rate conventional mortgage is going to give you a great chance to buy luxury homes for sale. If you’re middle aged you’ll want to go for a mid-range mortgage, and if you’re retiring short term mortgages 15 years and under are the best option for you. Whatever you do, talk to a financial consultant and work with a luxury realtor to make sure you’re getting the most for your money.

The Goodale Miller Team is the #1 team in Canada for Century 21 11 years running.  To learn more visit http://www.goodalemillerteam.com