Friday, May 16, 2014

Turning your Vacation Home into an Investment

A vacation home at Bethany Beach is a source of great joy and can be a good investment that can be leveraged by renting out the property, when you are not using it personally . The act of turning a vacation home into an investment property has the added advantage of getting tax breaks along with the extra income that it brings in. A property is recognized as an ‘investment’ according to IRS Pub 527, if it is rented out for more than 14 days in a year or 10 percent of 365 days, whichever being the most.

What to consider?

People who are keen on investing in a beachfront property must figure out the maintenance costs and other related details like tax and insurance. A beach house is prone to wear and tear owing to the  sand and salt that it has to withstand, which means it will need a coat of paint every two or three years.

The thought of building a beach house from scratch can be an exciting prospect which again will need time and effort on your part along with the limitations of sticking to the budget. This is where a real estate agent comes in handy as they can help you acquire that beautiful beach house with little to no efforts.

The location of a beach home is crucial for it to make a great rental. A beach house  that suits the needs of an average vacationer should be fully furnished and must be ideally located within walking distance from the beach. Although such properties tend to cost more, they do make up for great rentals that bring in more money.

The low interest rates and easy mortgage programs in the state of Delaware, particularly around the Bethany Beach is a good reason to buy that lovely beachfront property you have been dreaming of. Steve Morgan at Fairfax Mortgage Investment, Inc. is a Bethany beach lender and a mortgage broker who can help you realize your wish of acquiring the best beach property to spend some quality time with your loved ones.




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