We all know Maine is—as our slogan declares—“The Way Life Should Be.” Serene. Laid-back. Like a carefree dream from your childhood. Do you yearn to experience that wonderful, get-away-from-it-all life in your own second home or vacation home in Maine? Thanks to still-super-low interest rates and the complete reimagining of our world brought on by the past year’s events, there has never been a better, smarter time for you to make your dream a reality. Here are a few important things to think about as you seize the opportunity and make it everything it can be…
Location, Location, Location
One of the million-and-one reasons why having a second home or vacation home in Maine is the perfect escape—apart from its sheer, undeniable awesomeness—is serenity and safety. In fact, U.S. News & World Report JUST named Maine “The #1 Safest State in the U.S.” From dreamlike ponds and lakes to the gorgeous unfolding of the magnificent natural world, vacation home areas in central Maine such as the Belgrade Lakes Region and the Kennebec River Valley will offer you a tranquil second-home experience unlike any other.
Key Benefits of Buying Your Second Home
Aside from the opportunity to enjoy unmatched rest and relaxation, there are also practical advantages to buying a second home or vacation home in Maine. As has been proven dramatically over the past fifteen years—and PARTICULARLY over the past two—buying this type of home is an excellent investment. According to the Maine Association of Realtors, the median sales price of a home in Maine has skyrocketed 28 percent in just the past year. Even better, your second home or vacation home in Maine could pay for itself. By renting it out during the off-season or when you are on vacation elsewhere, you could create a significant additional income stream for yourself. And many homeowners who own a second home use their rental income to pay for upkeep, for home improvements, or even for the mortgage on their first home. You will likely enjoy tax breaks, as well.
While there are lots of “upsides” to buying a second home or vacation home in Maine, there are some real-world considerations to be aware of too. One is you are likely going to need a larger down payment than was required for your first home. While some lenders may allow for as little as 10 percent down, 20 to 25 percent is more typical. In addition, you’ll still need to pay all fees associated with a standard first-home mortgage, like the appraisal fee, inspections, title search and other closing costs.