Things to consider in buying a waterfront vacation home
Things to consider when buying any waterfront vacation home.
Is there a view?
Views really do matter. An unobstructed Ocean view adds as much as 60% to the value of a home per the Journal of Real Estate Finance and Economics. Proximity to Golf courses or a park can add as much as 20% to a homes value. This is per an article by a much published author named Soren Anderson, a writer from Manchester College.
Consider the recreational activities…
The What and the When.
For example in a Ski resort area, your options are limited due to weather considerations and the total amount of activities available is definitely less.
*In the Keys and in most Florida Gulf or Atlantic communities, about the only thing you cannot do year round are mountain climbing and white water rafting.
Nearby Medical and shopping options
These are very important considerations. If there is an accident, how far away is a hospital?
If you need groceries or restaurants, what is nearby?
Oftentimes vacation properties can be secluded and don’t offer easy access to the above. At first being remote can seem as desirable, but in the end it can grow old quickly.
This also affects home values by the way. If you can have the vacation feel and recreation, yet have amenities nearby, the prices go up.
How much room do you need?
If you own a home with nearby recreation and sightseeing, expect people to come out of the woodwork. Everyone will be your friend. Larger homes, with more bedrooms, a 3/2 and up always rent better. So if you can, get a home with extra space.
Type of Construction or is it built to last.
The age of the home will determine the building code that it was built to. In the Keys newer homes have to be built to strict specs as to wind handling characteristics.
Also, look for low maintenance homes.
SDome homes in the waterfront areas are made of concrete block and have pea-rock for yards and the outside is stucco over concrete or frame. This means lower maintenance, which is very important for an absentee owner.
Finding renters
Does the home have good rental potential and is there local rental management available?
This is a very important consideration, both for long term and short term vacation rentals.
Remember, even if you don’t want to rent, this can be an important consideration for a future buyer or if your situation changes.
Home maintenance.
Are there nearby electricians, plumbers, appliance stores and general contractors.
If anything does happen, the prices to have things repaired or replaced will be less if there is competition and service people are nearby.
Check with the REALTOR you are talking with to get a Vendor list of who the Real Estate company uses to service their rentals and offices.
Rules and Regulations
Make sure you are clear on and have copies of any deed restrictions or condo docs as to what is allowed and what is not. Too many rules can be appetizing for some but a turnoff for future buyers. For example if you have children who will want to use the property in the future as a college break, lots of communities can prohibit it.
In conclusion, Vacation homes can offer good investment potential from an appreciation aspect and income potential from renters.
Income potential.
As Florida grows (it is on pace to be the 2nd largest state in the USA by 2010) we will have more people looking to vacation here. This will drive prices up and make rental occupancy rates climb even more.
Is there a view?
Views really do matter. An unobstructed Ocean view adds as much as 60% to the value of a home per the Journal of Real Estate Finance and Economics. Proximity to Golf courses or a park can add as much as 20% to a homes value. This is per an article by a much published author named Soren Anderson, a writer from Manchester College.
Consider the recreational activities…
The What and the When.
For example in a Ski resort area, your options are limited due to weather considerations and the total amount of activities available is definitely less.
*In the Keys and in most Florida Gulf or Atlantic communities, about the only thing you cannot do year round are mountain climbing and white water rafting.
Nearby Medical and shopping options
These are very important considerations. If there is an accident, how far away is a hospital?
If you need groceries or restaurants, what is nearby?
Oftentimes vacation properties can be secluded and don’t offer easy access to the above. At first being remote can seem as desirable, but in the end it can grow old quickly.
This also affects home values by the way. If you can have the vacation feel and recreation, yet have amenities nearby, the prices go up.
How much room do you need?
If you own a home with nearby recreation and sightseeing, expect people to come out of the woodwork. Everyone will be your friend. Larger homes, with more bedrooms, a 3/2 and up always rent better. So if you can, get a home with extra space.
Type of Construction or is it built to last.
The age of the home will determine the building code that it was built to. In the Keys newer homes have to be built to strict specs as to wind handling characteristics.
Also, look for low maintenance homes.
SDome homes in the waterfront areas are made of concrete block and have pea-rock for yards and the outside is stucco over concrete or frame. This means lower maintenance, which is very important for an absentee owner.
Finding renters
Does the home have good rental potential and is there local rental management available?
This is a very important consideration, both for long term and short term vacation rentals.
Remember, even if you don’t want to rent, this can be an important consideration for a future buyer or if your situation changes.
Home maintenance.
Are there nearby electricians, plumbers, appliance stores and general contractors.
If anything does happen, the prices to have things repaired or replaced will be less if there is competition and service people are nearby.
Check with the REALTOR you are talking with to get a Vendor list of who the Real Estate company uses to service their rentals and offices.
Rules and Regulations
Make sure you are clear on and have copies of any deed restrictions or condo docs as to what is allowed and what is not. Too many rules can be appetizing for some but a turnoff for future buyers. For example if you have children who will want to use the property in the future as a college break, lots of communities can prohibit it.
In conclusion, Vacation homes can offer good investment potential from an appreciation aspect and income potential from renters.
Income potential.
As Florida grows (it is on pace to be the 2nd largest state in the USA by 2010) we will have more people looking to vacation here. This will drive prices up and make rental occupancy rates climb even more.