Saving vs Buying Fractional in 2009
I am anxious to see how this 2009 summer second home real estate selling season turns out. The negative news that we were bombarded with over the last 8 months seems to be dying down. The US stock market is up 30% from its bear market low in less than 2months. Spending is still down, but I think that is a postive in that. The postive is that the fractional sales model will become more attractive and with more money in the bank, the consumer will have more power to purchase that fraction in a luxury holiday home.
June 2, 2009 at 9:29 am
I think what the market needs is some certainty in terms of valuations. Many people would buy a second home or a fractional home to use for leisure if they knew that they will at least not lose money on it.
As soon as the market calms down I think we will see customers buying for leisure, with people looking for profit still waiting by the sidelines. Which is great news for fractional, which is suited just for that…
June 4, 2009 at 3:24 am
You are completely right about valuations. Most people who will purchase a second or holiday home do it first for the enjoyment of the property and the holiday. If you think the prices are going down in the next few months what is the incentive to buy now?