| Banks and Loans in an Economic Downturn | | | | weeks at a time. This way you can make any |
| If you have considered a vacation home or a | | | | weekend a vacation. Imagine getting away 10 or |
| second home then this could be just the time to | | | | 12 times per year rather than once, it's a great |
| make a purchase. With the economy struggling | | | | stress buster. Make a list of things you really like |
| and the giant portfolio of foreclosed properties | | | | to do. If you like to fish then look for property in |
| you can really find some bargains. Some of the | | | | an area that has rivers and lakes. Do you like to |
| smaller banks are under orders to bring their loan | | | | ride bikes? If you like tour riding then find |
| portfolios back within standards. These financial | | | | somewhere that has scenic highways. Look in the |
| institutions have way too many bank owned | | | | areas where they have hills and forest trails if you |
| properties or pending foreclosures on the books | | | | are a mountain biker. Do you like to relax and |
| and they are ready to deal. | | | | read? Try a mountain region with great views or |
| The downside is financing. If you don't have cash | | | | something on a large lake, the ocean, or an |
| to offer then you have to get financing and it's | | | | intracoastal waterway home. Mountain views and |
| not as easy as it was 2 years ago. Obviously the | | | | rippling water are very relaxing, it never gets old. |
| bank you buy from is better off if they have | | | | Speaking of intracoastal property, if you like |
| someone paying for the home but some of them | | | | boating then you can move inland to less |
| are restricted and can't write new deals now. If | | | | expensive property as long as it has an inlet. |
| you have good credit you should be able to get a | | | | Generally the inlets that run to the intracoastal |
| loan for your vacation property but it generally | | | | areas will be much cheaper than property on the |
| requires a larger down payment and a better | | | | intracoastal and definitely less than on the ocean |
| credit score. You will most likely end up getting a | | | | itself. |
| loan through a larger bank. You will also want to | | | | Other Considerations |
| consider the total cost of ownership including | | | | Some other things you should consider are how |
| insurance and higher property taxes since you | | | | far from a major city you are comfortable. Do |
| won't qualify for any type of homestead | | | | you want to be close to fast food or a major |
| exemption if you aren't living in the home full time. | | | | grocery store? Do you like fine dining or will you |
| How To Choose Your Property | | | | prepare meals? Do you have health issues that |
| If you want to really get some use out of your | | | | require medical facilities to be close by? Are you |
| vacation home then you should pick an area that | | | | handy or will you rely on a local handyman for |
| you like to spend time but it's not too far to drive | | | | repairs? Do you need cell phone service? There |
| in one day. If you are a teacher or have a similar | | | | are plenty of locations that don't have good cell |
| job that you get summers off or a month or | | | | reception and buying a home on the "good" side |
| more at one time then you can consider some | | | | of a hill or mountain can make all the difference in |
| long distance options but less than a day's drive is | | | | the world. |
| more practical for those that only get 1 or 2 | | | | |