Top 5 Things to Know about Buying a Destin FL Vacation Property
Are you ready to buy Destin FL vacation property? The time may be right for the purchase according to some. Economists are saying that although some home prices in the hardest hit areas could still fall a bit more, the worst is over. Here is what you should consider if you are in the market for Destin FL vacation property.
- Shop for the Destin FL vacation property as if you were planning to rent it. The rental possibilities will affect the value if you decide to sell the home. If the home has a homeowner’s association, make certain that short-term rentals are allowed. A bathroom for every bedroom in the home is preferred by many renters, so keep this in mind.
- The interest rate you pay on a loan for the Destin FL vacation property will depend on how the home is used. If it is going to be used as a second home, the interest rate will be comparable to a first home. However, if it will be used as rental property, investment rates are typically charged. The interest rate may be as much as 1% higher and the down payment can be 25%.
- Prices are still very competitive with the low from five years ago. In many areas where second homes are popular, prices are lower than they were in 2006. One example is single-family homes in Napa, CA, which are down 47% from the 2006 cost.
- Do not count on buying a Destin FL vacation property as a way of paying your bills. The average time property rents is 17 weeks per year. The additional expenses will include insurance, maintenance and cleaning. Depending on how far away your main home is from the vacation property, there may be management expenses as well. The amount the home rents for will need to be considered to determine if you will break even.
- There are tax benefits associated with the Destin FL vacation property purchased. If you rent the property for two weeks or less, the money received does not have to be reported. The operating costs and the property tax and interest can be deducted