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Purchasing a Vacation Home in Florida
It’s no surprise Florida is a popular spot for many vacationers, retirees, and investors. The sunny beach-side state offers affordable homes for purchase that are likely to maintain their value because of an ever-increasing demand. However, there are several things to consider before buying a second home in Florida.
Getting Started
If you're ready to buy a vacation home, you more than likely will need some expendable income, a good credit score, your first mortgage paid off, and free time to devote to maintenance. Before beginning your search, be sure to establish a price range that is reflective of your budget, as the goal is to escape from responsibility and everyday stressors, not bring more on. Ask yourself how often you will use your vacation home and if you will rent it out or not, and factor travel time into the equation as well.
Lifestyle Considerations
It’s important that you pick a vacation home that suits your lifestyle. If you are retired, for example, perhaps a one-level home with very few sets of stairs would suit your needs best. In terms of renting potential, windows with a view and proximity to the town and beach are crucial. Before making an offer, ensure you want to spend a significant amount of future time in the community by renting in the area first. Only then will you know if you can commit and possibly benefit from extended stays. Be aware of the seasonal weather and tourism trends.
Tax Matters
Like it or not, taxes are a component of purchasing a second home. You will likely be taxed on any income earned from rent and can probably go on to deduct operating expenses. These would include interest, utilities, cleaning fees, lawn maintenance, a homeowner’s association, marketing, and repairs. While buying outside of city limits may help lower your tax bill, your homeowner's insurance is likely to still be high if your home is near the water because of the risk of storm damage. Either way, only work with a trustworthy local real estate company like Team Stacey because they will be caught up on all of the pertinent laws.
Establishing Your Venture
It can be really smart to make money on your vacation home when you aren’t there, so long as you go about things professionally. For many investment property owners, this begins with establishing the venture as an LLC. ZenBusiness.com notes that an LLC helps to protect your personal assets, plus it provides some tax perks. Also, if you don’t live close by, it’s important to hire an experienced and trustworthy property manager. That agent will work to keep your property rented and in top condition, so the money steadily rolls in and it’s a joy to own.
Buying in Florida
Florida is a top vacation destination for many reasons, one of which is the year-round warm weather. You will find great beaches such as Naples and Fort Myers Beach. The state is also home to America’s first space station (Kennedy Space Center), where tourists can take tours and learn about aircraft. There are several theme parks including Disney World and Universal, both of which offer endless entertainment. While Miami and Orlando provide a rich nightlife, the Everglades National Park is full of wildlife and is a bird watcher’s delight. One can even scuba dive, surf, boat, swim, collect seashells, and eat all the fresh seafood desired.
Owning a residence in Florida means escaping the winter and also having a place for family and friends to gather. Depending on travel time, you may be able to get away for the weekend at the drop of the hat with only some light packing. Whether you’re using your home for vacation or as an investment, your prospects are bright as long as the price is right.
For a hassle-free home buying experience, connect with an experienced real estate pro at Team Stacey!