3 Tips for Investing in Rental Property and Vacation Homes
February 8, 2016 Real Estate NewsOnly a decade ago, buying beach real estate for a vacation home could only happen in dreams. Now, with the economy growing steadily, job security on the rise, and pent up demand, competitive mortgage prices and affordable real estate prices have prevailed. Best of all, they’ll continue to prevail through 2016. In other words, there’s no better time than the present to buy real estate to supplement your income. But while it may be the perfect season to buy beach property, don’t let the positive vibes of the market dictate your real estate buying decisions. You don’t want to rush, because if you do, you could make costly mistakes. Investing in rental homes is a lot more complicated than you would think. That being said, it doesn’t have to be so confusing. Here are three essential tips that can help you buy the rental home you’ve always wanted:
- Location Matters As obvious as it sounds, you need to know why you’re going into real estate in the first place — why you want even want the second property to begin with. Are you looking to buy a vacation home that you plan to rent out while you’re not there? Are you looking for a rental property to supplement your income? If you’re looking to buy a getaway home, you’re going to need to purchase it in an area that’s both accessible to everyone in your family, but also offers a variety of activities that cater to all ages and interests. If you plan to rent it out, finding a property in a desirable location is essential. There are over 115 housing units in the U.S., so it’s important to choose wisely!
- Budget Wisely While it may seem like a good idea at the time to consider real estate listings and luxury homes a bit out of your budget, it’s not that great of an idea. Instead, buy smart and if necessary, invest in repairs, additions, and renovations. If you blow all of your budget on luxury homes, you won’t be able to afford property improvements, which means smaller profits.
- Get Help It’s OK if you’re not a real estate whiz. That’s what the experts are for. Finding a good real estate agent is an essential part of finding the property that’s not only the best investment, but the best choice for you and your family. There are approximately 2 million active real estate agents in the U.S., which makes finding a good real estate agent all the more simple.