For many, buying an investment property is a lifelong dream. But before you sign the dotted line, there are a few things that you should consider. Read on for a beginner’s guide to property investment. Afterward, if your research has you feeling overwhelmed, contact us at Pam Harrington Exclusives. With over 40 years of vacation rental and real estate experience, we are proud to be the No. 1 source for prime and luxury realty in the South Carolina Lowcountry.
4 Things to Consider Before Buying an Investment Property
1. Choose Your Location Wisely
The location of your vacation home is crucial. You may not plan to stay there year-round, but if you want to make the most of your investment property, it should be somewhere that you wouldn’t mind vacationing year-round.
If you want to use your home for family getaways, choose an area that is accessible for everyone. You’ll want plenty of activities for different age groups. Beautiful year-round weather, a rich history, and pristine beaches are a few reasons that Kiawah Island and Seabrook Island have multiple seasons of rental demand.
2. Try it Before You Buy It
It’s always wise to spend some time living in an area before signing on the dotted line, especially if you plan to rent out your property. Visiting during different seasons will give you a firm understanding of the weather, atmosphere, and crowd patterns. Your local knowledge of things like needing to book a dinner reservation during busy season or arriving at the beach before noon are the same things that your potential renters will encounter. Local expertise will give you an edge over your competitors.
3. Educate Yourself on the Property Taxes & Insurance
The cost of ownership is another critical factor to consider when buying a vacation home. You should include all overhead costs in your budget, including property taxes and homeowners insurance. Using a mortgage calculator can help you determine what is affordable as well as totaling the monthly costs of repairs, maintenance, and fixed expenses like gas and electric. You don’t want to buy your dream vacation home and realize you’re in over your head!
4. Have a Plan
Buying a rental property is worth the investment if you use it for rental income, frequent getaways, or retirement. Remember to always have a plan in mind. If you purchase a home and can’t be there enough, the maintenance and financial strain may be overwhelming. Keep in mind your adult children, relatives, parents, or friends who can also take advantage of your second home when you’re not around.
Consult the Experts in the Area
If you choose to work with a firm, make it one of the most respected in the area. When you are thinking about buying an investment property, our real estate agents at Pam Harrington Exclusives can assist with every part of the process. With access to the top properties in the best Charleston neighborhoods, we can help secure the rental property of your dreams. Once you have your perfect home, we can also take care of your management needs. We will advertise your rental, book reservations, and be the first point of contact for all your guests’ needs.