Purchasing a second-home property in Santa Cruz area can be considered as a very calculative decision in the housing market today. Beach front property normally comes with significant amenities that offer enjoyment and entertainment for both you and the family. It can be used as a seasonal vacation or weekend getaway home. Considered as a long term investment, the second-home can be cost effective. As investment property, you get more money by renting it out for long term as a weekend rental or vacation rental. You may even convert it to a timeshare-property for you and the family to enjoy it occasionally. It just requires some Santa Cruz estate information. When you are ready to venture in purchasing second-home in Santa Cruz, here are some of the major steps to realize your dream:
Raise the required cash
This is the first factor to be considered when making a choice to purchase a second-home. In today's real estate industry, home-ownership can be quite affordable. The home rates are still ranging at a record breaking low. Moreover, mortgage interest-rates are still at an all-time low. Therefore, no matter the amount of money you are willing to invest, you will still find it affordable to buy a second-home in Santa Cruz. Check your bank records to figure out the amount of money in your savings, money market deposits accounts and checking.
After determining the available cash, get other creative ideas to raise more funds for your closing costs and down payment for your Santa Cruz second-home.
Get prequalified by the mortgage lenders
Get a reliable mortgage lender to initialize the prequalification process. They scrutinize your documents, review the amount of money you want to invest then give you a prequalification letter. The letter will guide you on the Santa Cruz second-home that will suit you depending on your current income, credit score and available down payment.
Decide on the suitable beach-front property
There are some factors to be considered when purchasing beach front property in Santa Cruz area. Although most beach-front homes are for a single family, there are some amazing townhouses and condominiums to choose from too. However, you must consider other extra costs that are associated with the kind of home you want. There are certain association fees linked with most townhouses and condos. Even some single family properties may have these costs. Single family property also includes landscaping, higher maintenance and other related costs.
Consider tax obligations
Second homes in Santa Cruz attract annual property taxes. Whether you plan to rent out your home as a vacation or long term rental, there are some income taxes involved. Your area real estate tax-consultant may advice you in making the correct choice.
Be prepared to rent it out
The beach front homes in Santa Cruz offer prime location to most renters. Most second homes in Santa Cruz are rented-out as a vacation property. Equally, there are also other long term rentals. It's upon you to decide on the most suitable method. For long term investments, the annual leases are very viable.