Investing in Real Estate: Is it a Good Option for You?
For those with inactive cash just sitting in the bank, real estate investment is one of the smartest ways to make it work for you. It is a smart investment because with each mortgage payment, your personal equity increases. A vacation home doesn’t necessarily have to be as grand as your home, so you can be more flexible and search for off-market properties and foreclosures. Plus, there are various tax incentives for things like any interest paid on home improvements.
If you're looking to dive into real estate investment by purchasing a vacation home, look to these tips from Huntington at Hunter's Ridge.
Before You Begin Looking at Listings
So we know that real estate is a good investment -- but are you ready to buy? Ask yourself:
Do I have enough time to find an investment property and maintain it?
Do I have the money not only for a mortgage, but also for other costs such as insurance and property management if I cannot rent it out?
Is this investment property something that will bring me enjoyment as well as side income?
Most people working nine-to-five don’t have enough time to invest in a venture like this, which makes it the perfect opportunity for those in retirement. To offset the risk of not being able to rent your property, finding a perfect location is key. And the easiest way to make sure the property has more than monetary value is to find a vacation home you can also enjoy.
Why a Florida Vacation Home is Perfect for Retirees
If you are reaching retirement and interested in making an investment in real estate, finding a Florida vacation home is a great option. First and foremost, Florida is a vacation destination. In 2017, 31.1 million tourists visited the Sunshine State just during the first three months of the year. That is the highest number of visitors during any quarter in state history and a 2.5 percent jump over the first quarter of 2016.
If you own a rental property in Florida, you too can take advantage of all that sweet tourist cash flowing in. Plus, you also have the advantage of being able to use the home yourself when you want it. As you near retirement, you finally have the time to travel whenever you want. How great would it be to escape the January cold and spend a few weeks in order to enjoy the Florida warmth?
Finding a Vacation Home that Suits You
You want to find a vacation home that fits both your lifestyle and needs. The first thing to consider is location. How will you get there? Do you plan to drive or fly? If you need to fly, you will want to pick an area with convenient access to an airport. If driving is doable, you can look at more rural locations, especially if that suits your interests. You may also consider purchasing a vacation home with friends so you can share the cost of the mortgage and any maintenance expenses.
Your interests are the next thing to consider. What would you like to do when spending time on your property? If you are a beach person, finding a place with beach access doesn’t just make it perfect for you, but it also makes it a more attractive location for renters. However, notice we say beach access, not necessarily beach front. Remember that insurance rates go up in hazardous locations that are more susceptible to natural disasters. A place that is biking distance to the beach can be just as fun and attractive without risking floods.
Investing in real estate is a great way to increase your personal equity. A Florida vacation home is perfect for retirees as they have plenty of opportunities to rent it out to tourists while also being able to enjoy the property themselves. When finding the right property, retirees should look for a place that fits both their lifestyle and needs by looking for a good location and taking their interests into consideration.
Huntington at Hunter's Ridge is a tranquil, maintenance free community for adults age 55+. If you wish to learn more about our available homes and the amenities we offer, please get in touch by calling (386) 200-6597.