So you’ve spent some time in a resort and discovered a property you’d quite like to invest in. It’s likely you had a great experience wherever you were and you’d be keen to head back there some time, preferably in the same property. In addition, you might have considered the prospect as being profitable to you and other holiday goers. These are the first thoughts of a property investor, as well as an avid resort fan.
It’s time to prepare yourself for the investment process, in the hope that you cherish many years with your new beach house. Here are five ways you can make the most of your new property.
Consider any Additional Costs
It’s essential that you know all the costs associated with running the property on top of the loan itself. It’s no help knowing you can afford the loan but not the total running costs. You will need to cover maintenance, taxes, insurance and utilities, as well as a property manager if you spend the majority of your time at least an hour away from the property.
Talk to others who live in the area to get a better idea of the running costs and prices for property services. There are many different factors that determine the maintenance requirements of a property, so take these all into account before you invest. Also, always base your assessment on the worst-case scenario and don’t risk any leeway when it comes to costs. When maintaining your property, you’ll want to look at the services available to you in your local area (perhaps similar to Mr. Greenway, operating out of Memphis, TN) that can help with things like plumbing, AC repairs, and more.
Choose Someone Who Knows the Area
Why would someone not want to buy a home in a picturesque little village away from the hustle and bustle of city life? It all seems too good to be true for some and they’d often be right. That’s because, despite the stunning scenery, tranquil stream, winding country roads, and a short journey to the coast, you can’t guarantee everything will stay as it looks throughout the year.
A real estate agent can tell you when things change in the local area, whether it’s road closures or even the busiest tourist months. You could also get in touch with local home builders, such as Wright Homes in Utah, to find out more information on the area and the kind of homes you could invest in. Remember that every holiday location, as beautiful as it may be, has its pitfalls. But, by knowing the right people, they could be avoided.
Do Research on All Four Seasons
Even if you have set your heart on this particular location after a few weeks in the height of summer, it’s important to see what the area is like during the other seasons as well. Roads may become impassable at some points during the year as maintenance for potholes takes place while the beach may be completely deserted as a result of high tides and harsh weather conditions.
You should rent different properties throughout the year as well to get a better idea of how the community copes with changes throughout the year. If you’re hoping for financial gain, it’s no use investing in a property that offers much lower rental fees outside of the summer months.
Only Purchase What You Can Afford
You can use the endless amounts of mortgage calculators available on the internet nowadays to give you a better idea of what you can afford. All you need to do is enter your earnings and what you owe before you are provided with examples of what the banks will offer you.
There are now stringent applicant requirements imposed by banks since crazy lending prices lead to hard financial times for the country. You’ll need to consider down payments and the percentage of your income that goes towards the mortgage.
Look for affordable home builders like Hyde Homes who specialize in creating cost-effective and efficient homes that are tailored to the needs of the homeowner. You can also negotiate closing costs and other fees. When negotiating, be sure to keep an eye out for special offers and discounts that can lower the overall cost of your dream home.
Just remember that, when looking for something you can afford, it’s no problem starting small and making your way up as an investor. In fact, this is the recommended route to take.
Don’t Treat Your Holiday Home as PURELY an investment
This is the biggest mistake first-time investors make because the money you’re likely to make back won’t be anything compared to what you could get on other investments. If you do buy a holiday home, it should be because you were genuinely attracted to the idea of living in it during your resort holidays.
You need to enjoy the area as a whole otherwise it won’t seem like money well spent. You need to have the same devotion to the property as you would if you were keen on staying there, caring for it and improving it if necessary.