Who doesn’t want the ability to take a vacation any time of the year without worrying about a reservation? You are afforded this luxury when you own a Daytona Beach vacation home, a destination you can escape to at any time for relaxation and solace.
Not all vacation properties are equal, however. Before committing to such a long-term investment, there are questions you should ask first.
How Far Do You Want to Travel?
How far are you willing to travel to your vacation home? You may want a getaway destination that offers distinct scenery and a different lifestyle than you experience in your everyday home. In this case, flying to a different city or state may be acceptable to you and worth the change of scenery and new experiences.
Conversely, a vacation home near your primary residence may be the perfect getaway. You can check in on the property every week, for example, to make sure everything is intact. Settle for properties within 10-15 miles. They’ll be easier to reach, yet still afford you different experiences, especially if you choose a property in a completely different zone or neighborhood.
What Type of Lifestyle Do You Want?
Not every homebuyer wants a vacation home for the same reasons. Some just want a quiet place to relax, while others may want a location that is full of nearby attractions and entertaining nightlife. Assess your situation and lifestyle proclivities to find a property that works long-term.
You may want a home that gives you access to outdoor activities. In this case, it’s wise to choose a property near water bodies, the mountains, or camping sites. You can explore the sights and engage in fun recreation, without having to travel cross-country. Fun is just outside your front door.
If you want a place strictly for relaxing, a semi-remote location removed from the city hustle may better suit your needs. You can relax without the intrusions of loud noises or imposing neighbors, not to mention their barking dogs.
Can You Qualify for Another Loan?
The allure of owning a vacation home where you can relax sure sounds tempting, but can you really afford a second mortgage? There’s a lot of risk involved and lenders may be hesitant to offer such loans. They know people are more likely to default on their mortgage payments when they have more than one residence.
A determining factor is your debt-to-income ratio, a figure that’s calculated when you divide all your monthly debt payments from your gross monthly income. The higher this ratio is, the more likely you are to run into problems when making monthly payments. Shoot for a ratio as high as 43%—the highest ratio a borrower can have and still qualify for a mortgage.
There are many ways you can lower this ratio if you’re still worried about not qualifying. Probably the easiest way is to increase your monthly income, which could involve working overtime, getting a bonus or finding a higher-paying job. You might also consider adding a part-time job or generating additional income through a hobby. Paying off debt also helps lower this ratio—a feat you can achieve when you avoid unnecessary spending and stick to a budget every month.
Your life’s dream may be to find the perfect vacation getaway among homes for sale in Daytona Beach, FL, where family and friends can come together. This dream might be feasible if you know what type of property to purchase, consider the extra costs, and assess wants vs. needs. The help of an exclusive buyer’s agent can certainly make tracking down such beautiful properties a lot easier.
The exciting aspect of a Daytona Beach vacation home is that it offers flexibility. Even if you haven’t seen a property that ticks every checkbox for you, your exclusive buyer’s agent can help you find one you can transform into your dream vacation home. If you’re ready to find the perfect vacation home, contact a reputable real estate professional like Karen Wiles at The Buyer’s Agent of East Florida to begin your search.
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