Follow these steps and begin searching for the beachfront cottage of your dreams. | 418 N Casey Key Rd.
You’ve been dreaming of the perfect beach cottage, a serene retreat where each morning you are greeted by blue skies and the sound of waves crashing against the shore. For those considering it, buying a second home is a big decision. Here are some steps to help you prepare and determine if a second home in Sarasota, Manatee or Charlotte county can become a reality.
1. Determine if a second home fits within your budget
There’s a saying, “Don’t fall in love with something if it can’t love you back.” Before you start pining away for your beach cottage on Palm Island, assess your financial situation. Beyond a second mortgage alone, look at the cost of your homeowner’s insurance and yearly property taxes. For primary residences, Florida’s Homestead Exemption reduces property taxes but the same is not true of second homes. It’s also a good idea to consult with an accountant to determine how owning a second home will affect your income taxes. However, depending on how it’s used, you may also qualify for tax benefits.
In addition, monthly fees don’t go away just because you do – consider the cost of water, electric, HOA, and trash removal. And don’t forget to add the cost of a security and alarm monitoring system to your budget.
If you plan to only visit for part of the year or use it as a rental property, you may want to hire a property manager. Especially in the case of waterfront properties, homes receive more abuse from the elements than the average property, so extra measures should be taken to manage and protect them.
“A major advantage of hiring a skilled property management firm is the benefit of not having to deal with the day-to-day intricacies associated with the property,” explained Jamie Styers, Director of the Michael Saunders & Company Rental Division. “We are hands-on and manage inspections, maintenance, repairs, cleaning, tenant screening, lease preparations and much more.”
2. Scout for the right location
When determining where to buy, visit the location in question to really get a feel for what it’s like to live there. Along Florida’s Gulf Coast, our neighborhoods, areas and islands each have their own personality. Consider your preferred lifestyle and find an area to match what you love. To really experience it first hand, it’s a good idea to rent before buying. Speak with local residents and ask them about their experiences living in the area. Find out the types of people who are moving to that neighborhood and even what it’s like off-season. Also, review travel time and expenses and compare it with how often you plan to use the home.
Lakewood Ranch is highly desirable for those who love the country club lifestyle. | 6638 The Masters Ave, Lakewood Ranch
3. Investigate the cost of insurance
Once you know the general area you want to buy in, contact your current insurer and start a conversation to find out the cost of insurance on a second home. Especially if you are thinking of a residence near the water, you can expect higher premiums. For those who take out a mortgage, it’s likely that you’ll be required to get title insurance. Finally, if you are thinking of renting your second home, you may also want to consider liability insurance.
4. Start your home (re)search
After you’ve carefully reviewed your potential expenses and narrowed it down to your choice of county, area, or neighborhood, get in touch with a Realtor® and start the search for your ideal home.
If you are thinking of doubling it as a vacation rental, keep in mind that not all homes can be used as rental property. Check with the homeowner or condo associations for their rules as they apply to renting. And don’t forget, there’s more to the rental process than acting as a landlord.
“Beyond tenant screening and lease preparations,” explained Styers, “We provide an owner with pricing and marketing strategies and cross market the property between our regional offices and sales agents.”
If buying a second home is on the cards for you, let Michael Saunders & Company help you reach your goals. Our full range of services from MSC Residential, MSC Mortgage, MSC Title, and MSC Rental will make your home buying experience, seamless, stress-free, and rewarding. Start your search for Sarasota real estate today.