Buying a vacation home can be a fantastic investment, generating long-term returns and improving your family’s quality of life. To pay for the mortgage, many people assume they’ll be able to rent out their vacation home when it isn’t being used. While this is strategy can be successful, there are some things you’ll have to consider before buying a property.
4 Things to Consider Before Buying a Vacation Home
1. The Long-Term Cost
Real estate does tend to increase in value over time, but the market is unpredictable. Before making an offer on a vacation home, be sure you can afford it in the long term, and don’t think of it as a short-term investment.
2. The Local Rules
Some municipalities prohibit short-term rentals entirely, while others place strict guidelines on property owners. If you’re planning on renting out your vacation home, check to make sure whether the local regulations allow it.
3. Calculate All the Expenses
In addition to the mortgage payment, you’ll also have to pay property taxes, insurance, and regular maintenance costs. If you want to rent it out, you’ll also have to cover the cost of advertising, cleaning between tenants, and furnishing the house.
4. Local Rental Rates
The amount of rent you can charge depends on the location and size of your property, as well as the local market. Balancing the costs of owning the property against the amount of rent you’ll probably collect can help you decide whether the investment is worthwhile.
As the leading vacation home specialists in Gulf Shores, Sugar Sands Realty & Management, Inc offers beautiful beachfront properties located along Alabama’s beautiful coast. Their highly experienced agents know the area better than anyone and will help you find a vacation home perfect for your needs. Visit their website to start browsing properties for sale today, get more tips on Twitter, or call (251) 974-1672 to speak with one of the area’s top agents.