Investment Opportunities in Coastal Homes
All local tax assessors handle property taxes differently. If you hang on to a home for several years, you may be slammed with hike in property taxes. In these unstable economic times, many local tax assessors have chosen to either lower property taxes or freeze them for an undisclosed period of time. As the economy begins to rebound, the local tax assessor has the authority to reevaluate the milage on the property taxes and raise them. This will be based on local economies within different markets. A lot of hot real estate markets have seen property taxes escalate every a couple of years as a means of suppressing the demand in the area to control growth.
If you plan on making the home your primary residence, you will pay lower taxes than someone who uses the home as a secondary home. Primary homeowners usually pay about half in taxes of what a secondary homeowner would pay. Speak to the local tax assessors office about what the tax rate will be. Once you renovate the home, the tax value will be reevaluated and likely raised to reflect the increased value.
A lot of empty coastal homes and foreclosures have been lacking maintenance. You ought to be capable of negotiating a lower price on the purchase of the home to offset the work needed. Coastal homes have very rigorous zoning and building codes, so it's suggested that you talk to a few local building contractors who can lead you in your renovation attempts. Whenever you have to replace the roof, you'll in all probability have to replace more than just the roofing covering. A few upgrades to the framework such as roof straps may be required to bring the home up to code. Replacement windows and doors will likely call for upgrades to high impact wind rated windows and doors which can easily cost more than expected.
When speaking to your building contractors for renovation estimates, a good idea would be to double the cost and double the time frame. There will likely be delays due to weather, material shipments, and other unforeseen problems that will affect both cost and repair time.
If you are planning on renting out your coastal home to vacationers, you should do your homework on the local economy. Call around to local property management offices to determine what similar homes are renting for on a daily, weekend, and weekly rate. Ask them about their management fees and what is included as part of their service. Services like housekeeping before and after tenants are usually included.
When forecasting your rental income for your coastal home, determining the length of the vacation season is important. Regions such as Florida and other southern states will likely rent out 9 to 12 months a year. Meanwhile coastal homes in Maine and other northern states may only rent out 5 to 6 months a year.
Whenever you're looking for investment opportunities in coastal homes it's suggested that you start by browsing the internet. Internet real estate advertising services and local real estate internet sites offer listings, photographs, and even virtual tours online. When you discover the coastal home that meets your needs, you'll be able to call or email the agent or seller with whatever questions you may have.
Hubert Miles is the founder of Coastal Homes US, an online marketing service that provides Coastal Homes and Coastal Homes For Sale available in the US and Canada.