After years of visiting your favorite coastal location, you may decide to buy your very own beach home. Since this is a big investment, make sure you’ve asked all the right questions before making the purchase final. Here are just a few you may need answers to.

What to Ask Before Purchasing a Beach House

Where should I buy one?

If you plan to visit your beach home once a month or season, it will make more sense to get a place within relatively close driving distance. If you have intentions of renting it out for some of the year, a more popular travel destination with a growing need for vacation homes will help to maintain your extra income.

Most importantly, the place you choose should be conducive to your personality and lifestyle. If you prefer a peaceful, relaxing vacation away from people, a beach home next to popular tourist spots and entertainment zones probably won’t offer a positive experience.

What costs are involved?

Purchasing a second home often requires a bigger down payment and higher interest rates. In addition to the mortgage, you'll also need an insurance policy with special coverage for flooding and hurricane protection. 

In addition, factor in property taxes, homeowner's association fees, and yearly maintenance and repair bills when making your budget. 

Do I want to use it as a rental property?

Since you’ll only use the beach home for a fraction of the year, it can make sense to rent it out the rest of the time. However, there could be long vacancy gaps, especially in the first few years. 

You'll need to decide what type of clientele you want to rent your property before you buy. A family with kids will have different preferences than young college kids or child-free couples.

Will it affect my taxes?

A second home is considered a personal-use property as long as it isn’t rented out more than 15 days a year. In this case, all you would have to do is list the mortgage interest and property taxes along with your first property.

If you rent the house for more than this time, it is considered a rental property, and you will have to claim all rental fees as income. However, you can also deduct any operating expenses, such as utilities, repairs, insurance, and management for the number of days it was rented.

If you are ready to commit to your dream beach home, Sugar Sands Realty & Management will help you find the perfect spot. From weekend vacations to seasonal stays, they manage and sell beautiful beachfront real estate along the sparkling Orange Beach and Gulf Shores, AL. Call (251) 974-1672 or visit their website to find your new home today.