One of the investment options everyone is looking for nowadays is vacation rental properties. More than 36% of the homes that was bought during the 2000s are serving as vacation rental properties. Especially in areas such as Hawaii, these have become very common. Sea pines real estate has properties in major locations that can serve as a great option for investment. Vacation Rental Managers Association website http://www.vrma.com/trends predicts that more than 22% of the travelers prefer to stay in rental homes rather than expensive hotels. These holiday homes provide a great source for alternate investment and also attracts an income from the rental amount as well.
If you are looking to invest in a vacation home, here are the steps you are supposed to follow. First, choose the area or region where you would like to buy the property. The location should also serve as a fantastic vacation spot. The property should be located in a pleasant, easily accessible location so that it can attract many guests. Think about your family’s preference for a vacation spot as you can stay there as well. Beaches, where people can ski or snorkel, are some of the best options available. Therefore, choosing your location is the most important step for buying a property.
Do lots of research about the market conditions presently in the area that you have chosen. Look out for properties that are on sale right now on a website or newspaper so that you can understand the price in the market and plan your savings accordingly. Apart from the location, you have chosen, look for areas that are very close the location as well. Use websites such as CyberRentals to check out the pricing in each area. You can also check what kind of returns you might expect for the investment you are making while you are checking out these websites.
Consider the rental income you can expect from these homes. A weekly rental in the margin of 10 to 20 percent higher than the mortgage payments will be a good idea. Therefore, consider if your home can generate at least 25 percent of the money you are investing a year for buying the property. While you are calculating these, think about the costs involved in maintaining the property as well as other expenses involved such as utility bills and repairs. Look for local real estate agents who can manage your properties when you are away and costs involved for doing so.
Another important step is to check your credit report and ensure that you are in a position to take the mortgage. Check your annual payments along with the income you make per year. This will help you to evaluate your finances and understand your affordability as well. Consulting with a loan officer can also be of great help for you. To understand the facility associated with the property book the property near your chosen location for a couple of weeks and experience how it is.
While buying a property is a great idea, lot of research and consideration has to be done before investing in it.