Whatever your reason for considering the purchase of a second home in Sunset Beach, it is a huge investment. How do you know purchasing a second home is right for you? How can you determine if it is the best investment of your money?
How Do You Know if You’re Ready to Purchase a Second Home in Sunset Beach?
Consider Your Reason
The first step to determining if a second home in Sunset Beach is a good investment for you personally is to determine the purpose for purchasing.
To Own a Vacation Home
Consider your plans for vacationing in Sunset Beach. Do you plan to come ot the beach once or twice a year? Is it realistic to plan to be at the vacation home at least once a month or even every weekend? You want to ensure your usage of the property makes sense for the price you are paying. If you calculate the average cost of your favorite hotel or a great vacation rental times the number of stays in a year, versus what you will pay in property taxes, a vacation property mortgage, maintenance, utilities, etc. If the cost comes out even or about the same, purchasing a vacation home could be a great plan.
To Become an Investment Property Owner
If you plan to rent the property at all, it is a good idea to know the investment property laws for North Carolina. Most locations require that a homeowner who plans to rent out their vacation home more than 11 times purchase the home as an investment property. Many vacation homebuyers have plans of letting their home make money for them while not using it to help pay for the house.
Investment property loans will come with more qualifying requirements. This includes providing proof of projected rental income. It also includes a larger down payment compared to other loan types. Investment property loans also come with higher interest rates than other loans.
Using your home as a rental when you are not there is a great way to offset the cost of a vacation home, but it comes with a lot more work than many people realize. It is imperative to know what is required of you as a landlord and all of the other factors of opening your home to strangers before stepping into the vacation rental business. There are a lot of benefits to owning an investment property, and there are several things to learn before becoming an investment property owner. It is not something to be stepped into lightly with a dream in your hand. Some common considerations to start with include:
- cleaning
- running the rental schedule
- business taxes
- permits
- local and neighborhood restrictions for investment properties
- advertising and keeping a steady stream of bookings
- supervision while not in the home
- Someone is available near the property in case an emergency happens
- locking up items you don’t want guests to use
- risk of damage to the property
Owning real estate is one of the most stable investments to make in America. Before you purchase another property, you want ot ensure it is a choice that makes sense with your budget. A home increases in value with time, but it is a steady earning structure that takes time. You want to make sure you are truly ready.
If you are considering purchasing a home in Sunset Beach, please contact us. We are here to help you with any Sunset Beach real estate needs, both buying and selling properties.
“Karen and Frank Baker are patient and professional. They listen to what you want in a home and find it. It took me a few years to get to the “I’m ready to buy” point, but Karen and Frank stuck with me and never pressured me. We found my perfect home and I’m happy…..” – Sunset Beach and Beyond testimonial
Let the team at Sunset Beach and Beyond help you find your ideal Sunset Beach home. We are experts in Sunset Beach real estate.