So you’ve got your eye on a beach property. Here’s what you need before you take the plunge and buy a second home:
- Assess your budget
Do the math and figure out if you can cover all the costs. If something happens, say you get into an accident and end up in the hospital, lose your job or all of the above? Will you have enough funds to keep paying for the mortgage payments on top of your monthly costs?
- Ask about the rules
Before you take a look at a number of properties, know if there are any set rules against rentals. A lot of cities have one. It’s going to put a dent in your plans if these rules apply to the property so ask.
- Be realistic with the rental rate
You might not want to shoot for sky-high fees if you want to attract regular business. Go for a reasonable rate and you won’t run out of tenants.
- Pick a place you love
If you’ve always loved spending weekends at Lake Ozarks, then it makes sense to buy a second home right in that area. Ask a local realtor to help you take a look around Lake of the Ozarks real estate properties and get a feel for what your buying options are.
Get some help
If you live a good few hours away, then you need someone to look in on the property. If repairs need to be done or if you need someone to take care of your renters, your caretaker can handle all these in your stead.
- Pay taxes
You won’t get to keep your rental income tax-free, says U.S. News. However, if you don’t earn enough after all the expenses have been taken out, you could get a tax-break or liability. Ask a realtor or lawyer to learn more.