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Since it’s officially summer, thoughts turn to vacation and
vacation real estate. As mentioned in
earlier newsletters, there are deals to be made in Ocean City and the Delaware
shore. Builders who have overbuilt are
giving incredible incentives to sell inventory. Some of the deals include condo fees paid for a year and
financing bought down to very attractive rates. If you are concerned about the market, lessen your risk and buy
with a friend. Shared equity
partnerships are becoming more commonplace.
Sharing a vacation property you can’t utilize all the time makes perfect
sense. By the same token, if you are
interested in selling an interest in a vacation home you own, let us know and
we’ll publish it in the next newsletter.
We already have clients interested in a sharing arrangement, and often
prepare the agreements based on the parties’ wishes.
The most popular form of ownership is an LLC, but there are
different ways to own and title the property, depending on circumstance.
As of this writing, (July 11) interest rates are still
hovering in the mid 6 range (6.375-6.625) for thirty year fixed, and ARMS are
as low as the low 5’s for one year adjustables, to high 5’s for 3-5 year
adjustables. Carefully watch the bond
market. With stocks falling, funds
often move to bonds. When bonds start
moving up, interest rates move down, so the current stock market might be good
news for the mortgage market.
We’ll
see.
In both cases, documenting and recording their interest would preserve the rights of the injured party. In brother builder’s case, he can argue that part performance gives credence to the argument that there was a contract, even though no written contract exists. But it will not be an easy case to win.
Buyers get on your feet and get moving. There won’t be a better time to have your
pick of properties and interest rates that are extremely attractive.
FHA/VA is the way to go for little or no
down payment.
As always, call or email me your questions. You can reach me
at 410 884 1160 x 3007 or email at tee.tillman@colonytitle.com. We want to be your law firm and title
company.
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