It’s the right time to buy real estate. I know that from personal experience. Last year, I bought a foreclosed four bedroom two bath house in Marietta GA for $36,000. The previous owner had a $108,000 mortgage on the property. It was in reasonably good shape. I replaced the windows and gutters, added some kitchen cabinets, repainted and it is now renting for $900 per month. I’ll wait for real estate to rebound before selling it. Why not take advantage of the current foreclosure to acquire your log cabin vacation/retirement home?
I was inspired to write this article when I read an article in the Atlanta paper about a couple that did exactly that. The log cabin was located in Blue Ridge GA which is appropriately located in the Blue Ridge Mountains. They had rented cabins there previously. They loved the town and surrounding mountain and forested area. The couple had been looking to purchase a log cabin as a vacation home for around six years. The article didn’t mention the final price but they found the right cabin for the right price. They are now spending weekends fixing it up.
Even if you’re not ready yet to move to the mountains, if you’re considering retiring to a log cabin, now is the time to buy. The timing is right but what if you don’t have the money? In addition to the investment property, I also bought some land in the north Georgia mountains through my self directed IRA. The property is owned by the IRA and I suffer no tax impact until I take control upon retirement.
Another option is to rent out the cabin until you’re ready to retire. There is a solid rental market for log cabins. With prices so low, you can charge rent to cover the mortgage, taxes and maintenance. My sister and her husband own a summer home up north. They vacation there for two weeks in August. They rent it out for the remainder of the summer. Even with a relatively short vacation rental season, they make enough money to afford the mortgage. You keep the eventual property value increase and have your retirement log cabin when you’re ready.
As the adage goes, ‘buy low, sell high.’ Prices for foreclosed log cabins are very attractive. Like I said already, now is the time to buy.