So, you’ve decided to buy a home on the Crystal Coast of North Carolina? Congratulations! Buying a vacation home is exciting—just think of being able to vacation in your favorite beach spot any time you need a break from the big-city hustle and bustle or the quiet countryside. Here are a few ways that buying a vacation home differs from buying a primary residence, and some simply steps to make your search and buying transaction go much more smoothly.
1. Decide Where You Want to Buy
When finding the perfect location for your vacation home, identify a neighborhood that’s convenient to get to, offers easy access to attractions and amenities nearby, and will appeal to others (if you are thinking of renting). You’ll want to consider nearby highways and major roads, shopping centers and amenities, distances to beaches and parks, and distances to entertainment areas.
2. Determine What Type of Home to Buy
Single-family, townhome, or condo? Single-family homes offer more privacy and the added benefits of a yard, but are often larger, more expensive, and require more maintenance and upkeep. On the flip side, condos often feature amenities and included maintenance, but also offer less privacy and personal space and can include monthly maintenance fees.
3. Figure Out Your Financing
When buying a second home, you will likely need at least a 20% down payment, and unless you have the cash, you’ll also require a second loan. Many second-home buyers use a home-equity credit line on primary residences to help finance their vacation homes.
Keep in mind that if you plan on renting your home, there will typically be higher loan rates and a down payment starting at 30%. However, if you choose a “second-home” loan option with lower rates, you might not be allowed to rent your home.
Determine If It’s a Rental or Vacation Home
What’s the difference anyway? If you use the home for more than 14 days per year, or 10% of the time the home is rented, then it’s considered your vacation home. If you use for fewer than 14 days, then it’s a rental.
What’s cool about rental properties? You get to write off some of the mortgage interest, property taxes, utilities, insurance costs, depreciation, repair expenses, advertising, and any other rental costs.
4. Be Prepared to Be a Landlord
If you will be renting your home, be prepared for what comes with being a landlord! This means advertising and finding reliable tenants for your home. It means being able to repair any damages or make any repairs as they happen (including emergency repairs in the wee hours of the morning).
Another option is to find an expert local Realtor or property management company who will handle all of that for you.
5. Enjoy Your Vacation on the Crystal Coast!
And the last (and most important) step to owning a vacation home? Enjoying it! You put in the work, paid the money, and now it’s time to live the Crystal Coast lifestyle right on the beach.
Are You Ready to Buy Your Crystal Coast Vacation Home?
If you’re thinking of buying a vacation home on the Crystal Coast of North Carolina, then it’s time to contact Linda Rike Real Estate. We’re here to help you explore the area, discover beautiful neighborhoods, learn more about buying a home, and find the perfect vacation home in just the right location. Let’s get started today!