Rehoboth Beach Condo Investments
Rehoboth Beach House vary, typically the closer to the Beach the higher the rental income. However, even a 2 bedroom unit on Route 1 purchased for $140,000 t0 $200,000 can command up to $1300 per week in season .
Rehoboth Condos For Sale
There has never been a better time to buy that Rehoboth Beach House. With today’s current interest rates at historic lows and home prices being driven down from a harsh economy, it is the opportune time to invest in that second home. Rehoboth Delaware is noted as a haven for retirees. The low property taxes and no sales tax is a perfect scenario for today’s retirees. The influx to Rehoboth has not only been attributed to retirees home purchases but also the second home/beach home purchase. The current low prices and high rental rates have opened a investment option for today’s buyers.
The idea of retiring to these second homes in the future keeps driving the Rehoboth Beach Real Estate market. Buyers can now purchase a home, rent it out for 13 weeks of summer season, and sometimes profit while still be able to utilize the remaining weeks. The influx of retirees is making the Rehoboth area a year round resort. This is evident by the numerous businesses staying open year round.
Rehoboth Beach House Buying
The closer to that Atlantic Ocean Sand the more you will pay for that Rehoboth Beach House. However, special interest must be paid to the details of each and every property. Would you like to rent out that beach house or Condo???? Check the HOA/condo docs to assure its allowed. Is the garage apartment able to be rented??? Must check with city to assure its grandfathered…. no new ones are permitted.. . Many homes in Rehoboth are on leased land and have a term limit attached to the house. What does that mean to the buyer??? The owner must pack and leave at the end of the term and or take his house with him. There are no guarantees that the new lease will be renewed/increased etc….unless it has been contracted.
Rehoboth Beach House Financing
Buying that Rehoboth Beach House calls for financial planning. There are big differences with loan programs depending on why you are purchasing. Will it be your primary home??? If yes…. that allows the lowest down pmt. and interest rate. Then you have second homes…. min. required down pmt. is 20% of purchase price and the interest rate is comparable to primary homes. Second homes are homes that you will use personally for a portions of the year. Therefore, third homes or investment properties are difficult to finance and carry a higher interest rates.
Rehoboth Beach House Investment or Second Home?
For Example, does you and your potential beach home qualify as a second home or investment rate loan??? This depends on 3 things.
1. Is this your second home and will you be using it personally a portion of the year?
2. Distance from your primary home?
3.Is the property broken down into separate apt. and does it have multiple meters signifying commercial aspects.
In conclusion, be sure to analyze these items and discuss with your mortgage broker to assure a smooth transaction and unexpected twists.