Lake Havasu has long been a mecca for vacationers, especially in the Southwest USA. After coming out to our neck of the woods a few times, many people look at buying a second home here. Home ownership offers a couple of conveniences. #1 – You don’t have to worry about everything being rented out when you want to come to the river. And #2 – you can rent your property out when you are not using it for extra cash. Here are a few vacation home buying tips to help you in the Lake Havasu City real estate market.
Vacation Home Buying Tips
Check Your Finances
This should be an obvious first step. Do you own another home somewhere else? Are you still paying a mortgage on it? If you finance a second home, you need to be able to afford two mortgages. Make sure your income is steady and can hold up if the economy takes a turn. Plan on renting it out to help cover costs? You still must pay your mortgage if it sits empty. Also, banks put tighter restrictions on lending money for a second home versus a primary residence. For example, many banks require that your debt-to-income be no more than 42%. That means that your current mortgage payment, the proposed mortgage payment on the rental property and any other expenses cannot equal more than 42% of your monthly income.
Weekend Getaway or Rental Property?
Next, decide whether you keep the property in the family or make it a rental property instead. Some people only want themselves and people they know using it. It may even eventually become a retirement property. Others consider the possibility of adding to their investment portfolio by renting it out. Which option would you choose? Whichever way you go, consider keeping it for at least five years before even considering to sell it. That is how long it typically takes to absorb the cost of purchasing the property. However, if you plan on keeping it through retirement, that timeframe no longer matters.
Hire a Real Estate Pro Who Knows the Vacation Market
Finally, interview a few local Lake Havasu REALTORS® before hiring one. Ask them how many vacation/rental property buyers they have represented. What is the biggest challenge they found with their clients buying a second property? What did they do to overcome that challenge? How long have they worked in the Havasu real estate market? How will they be communicating with you? Write down questions you want answers to before talking to them. You need to feel comfortable with the person who will be representing your best interests in this real estate transaction. So, take as much time as you need to find “the one”.
Free Summer Movies in Lake Havasu
Just a reminder. You have one more week to take advantage of free summer movies in Lake Havasu. The Star Cinemas at The Shops at Lake Havasu offers a free family-friendly movie starting at 9:30 am from Monday to Thursday throughout the entire month of July. Last week was ‘The Smurfs”. This week features “Cloudy with a Chance of Meatballs”. To find out next week’s movie, visit Star Cinema’s Facebook page here.
Sunstone Real Estate Group at Coldwell Banker Realty, Lake Havasu City, AZ