At Jersey Cape Realty, we assist you in every step of the buying process. When you are searching for your beach house in Cape May, be sure to take advantage of every source of information available to you. Magazines like Exit Zero, Homes & Land, even Cape May.com show the latest listings currently for sale in Cape May.
If you would like a more direct approach, come into our office and one of our experienced real estate agents can guide you through the most updated information on beach houses for sale in Cape May.
Each opportunity to buy your own home at the Jersey Shore is unique. Elements like finding the best mortgage rates, title insurance, home owners insurance, and more are extremely important to a successful closing for when buying a vacation home. Your Jersey Cape Realty agent will assist you in every aspect of the home buying process. Have a question? Just ask! With our 25 years of experience, we have handled a multitude of home sales in Cape May.
According to MONEY Magazine in April of 2011, — Home prices continue to fall and there are some great deals for buyers looking for a vacation home in Cape May, NJ.
Here are four things to know before taking the leap when buying a vacation home in Cape May.
In many second-home hot spots, prices are still close to their five-year lows. According to Fiserv, single-home prices in Napa, Calif., for example, are down 47% from their 2006 peak; the average house in Ocean City, N.J., costs 24% less than it did in 2006. And though a few hard-hit markets like Las Vegas, Tucson, and Miami could fall a bit further, most economists believe the biggest declines are behind us.
Meanwhile, sales in places such as Myrtle Beach, S.C., and Palm Beach saw double-digit increases last year. “Now prices are starting to move up,” says Myrtle Beach broker Rod Smith.
You may think you’ll keep the retreat all to yourself, but it’s still smart to shop as if you’re going to rent to vacationers in Cape May. That’s because a home’s rental potential can affect its resale value. Jersey Cape Realty can show you how much rental income to expect from your Cape May vacation home.
Lenders have raised standards across the board, but they’re giving extra scrutiny to Cape May’s vacation homes. Use the property primarily as a second home and you’ll pay about the same mortgage rate as you would on a primary residence. If you need rental income to qualify for the loan, however, the house is treated as investment property — so you’ll have to plan for approximately 25% for the down payment and pay up to one percentage point more in interest.
Rent the house out for two weeks or less and you won’t have to report a cent of income to the IRS — and you can still deduct property taxes and mortgage interest.
Stay there for less than two weeks or 10% of rental days, whichever is greater, and you can deduct operating costs — everything from cleaning fees and maintenance to linens and repairs — in addition to interest and property tax. Use and rent a lot? You’ll have to allocate the write-offs between personal and rental use, so talk to your accountant before you buy your home in Cape May.