Vacation homes are a popular investment due to the unique and exciting benefits they provide. Buying additional real estate offers a reliable and excellent return on investment while providing a possibility for rental income and a place to vacation. As you shop around for beachfront real estate, make the most of your investment using some of the following important considerations.

3 Tips for Buying a Vacation Home

1. Determine Your Budget & Stick to It

Build a budget so you know what you can afford. Give yourself a limit and stick to it so that your investment does not become a stressor. Calculate what your mortgage will be and know what you can put down on a property. Don’t forget about additional costs such as closing costs, home insurance, taxes, HOA fees, utility bills, and maintenance. If you include the rental income in your budget, calculate on the conservative side to be safe.

2. Choose a Location

Location is the most important factor when shopping for real estate, and this is especially true with an investment property. If you want to rent out your property, either for short term or long term, then the location will be a significant factor in how much you can charge. Factors such as the school district may not be as important in a second home, but others will matter, such as amenity access, convenient shopping, and proximity to the water.

3. Avoid Timeshares

Timeshares may seem like a smart deal upfront, but it is important to remember that they are not an investment. You’ll spend a lot of money on a property you barely use and have little control over when you can use it. Instead, you can buy your own property to get your investment back through rental income or an eventual sale, and you’ll have complete control over it. If you don’t want the maintenance of a home, consider buying a condo.

Sugar Sand Realty & Management in Orange Beach, AL, knows the areas and vacation homes along the Gulf Coast of Alabama extremely well. Their agents can help you find your dream home and will manage your vacation rental on your behalf. They will hear your goals, then help you make them a reality. Learn more about them online and call (251) 974-1672 to schedule a consultation.