Buying a vacation home is something that many aspire to achieve. Now that you have decided you’re ready to buy a vacation home, whether it’s for your own personal use or as an investment, consider the following tips to ensure you get the largest return on investment for your hard-earned money. Next, be sure your home is equipped with a New Jersey Vacation Home Insurance program to protect it from a list of perils, including theft, robbery, storm damage, and more.
Know What you can Afford
Naturally, being able to afford a vacation home is the first step in deciding which one to purchase. As a rule of thumb, you need a 20 percent down payment, and your monthly outlay for houses and cars to go no higher than 36 percent of your income, says How Stuff Works. You can also use a mortgage calculator to determine how much the bank will lend you. It is also important to consider homeowner’s association fees, taxes, insurance, and maintenance fees when factoring in the cost of your prospective home.
While these may be attractive to some, there is a lot of room for scammers. Even in a great economy, timeshares are still difficult to sell.
Work with an Agent
Work with an agent who knows the area and understand the market. This way, you are sure to get a great deal in an ideal location. While resort towns and vacation spots are beautiful, there are always some downsides to the location. Let an objective real estate agent guide you through the process.
Rent it Out
Buy a home that is in an ideal location. It will be easier to rent and will supply you with extra income each month. Furthermore, make sure there are plenty of accommodations for potential renters including comfortable beds, sleeper sofas, beach access, beautiful views, televisions, internet, etc.
At Tri-State Insurance Agency, we want to ensure the safety of your assets. Our specialty coverage for high-net worth individuals seeks to protect your valuable properties to give you peace of mind with adequate coverage. For more information, call us today at (888) 990-0526.