Do you fantasize about getting a place on the water? A lot of people do, whether it’s a bungalow, cottage or luxury home.
Transforming that dream into reality requires the same skills as buying any other home — along with some specialized knowledge.
If it’s going to be a second home or vacation home rather than your primary residence, you’ll need a solid credit rating — and enough cash flow to comfortably make 2 mortgages, along with a nice cash cushion.
You also need to keep an eye out for issues that are beach specific:
- Is the home in a flood plain?
- Will you need additional insurance?
- Do coastal laws allow you to rebuild if the house is lost to the forces of Mother Nature?
You might even be able to make a little money by renting to other vacationers who dream of a summer place at the beach. But this income may be offset by new expenses, such as hiring someone local, perhaps a caretaker, to look in on your property from time to time.
If you want to stop dreaming and start planning, consider these factors as you plan for that beach house.
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