Fred Newman of Keller Williams Provides Expert Real Estate Advice for Buying a Vacation Home

According to the Gulf Shores & Orange Beach website, Alabama’s white-sand beaches offer “adventure, fun, relaxation.”  But many people own a vacation home for leisure and as a smart investment.  According to Mashvisor, a real estate investment website that seeks to empower investors to find investment properties, Orange Beach, Alabama, is one of the top twenty best places to buy a vacation home in the U.S.  One of the reasons is the return on investment, which is close to 5%, when the vacation home is also used as an Airbnb rental.  The median property price in Orange Beach, AL, is $469,000.00. Airbnb rental income is $3,190.00, a return of 4.7%, whereas traditional rental income is $2,250.00, a return of only 1.8%.  

While owning a vacation home can make logical and financial sense, it’s not a decision to be entered into lightly. Whether you’re looking for leisure, investment or both, here are three  important things to consider before buying a vacation home:

1. Know the Area: Real estate experts like Fred Newman suggest spending time in the area first.  “Unlike hotels and timeshares, a vacation home does not give you the option to change destinations if you tire of the scenery, so be sure you can’t get enough of that place before you commit to buying there,” noted Newman.  

2. Know the Overhead: “Even if you have no intention of renting your vacation home, know your overhead, such as water, gas, electrical, trash removal, landscaping, and maintenance, because nothing ruins an ideal vacation home like being in over your head financially,” said Newman.

3. Know the Rental Potential: “Managed correctly, a smart vacation home purchase incorporates rental potential into the equation,” Newman said. “Allowing renters to use the vacation home while you’re away can offset your costs.  If you plan to use the vacation property infrequently, find a local property manager, who will maintain your home. I can assist you by directing you to one.”

If owning a vacation home is part of your overall investment strategy, Fred Newman can help you calculate your return on your investment.  If you plan to rent your vacation home, having a rental business plan is too important not to have an expert on your side.     

About Fred Newman, Keller Williams

Fred Newman assists homeowners and condo owners throughout Baldwin County, including Gulf Shores, Orange Beach, Fort Morgan, Foley, Summerdale, Robertsdale, Fairhope, Loxley, Daphne, and Spanish Fort Alabama. He works with both buyers and sellers. For more information, please call (251) 979-5600, or visit www.baldwinhomefinders.com.

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