If you are a fan of the relaxing and recreational lifestyle of Gulf Shores Alabama area, maybe now is the time to take a hard look at the pros and cons of investing in property in this area.
We’ve always believed investing in vacation rental properties exposes the buyer to lower risks than many other types of real estate investments. Homes in a top-notch tourist destination like Gulf Shores remain in high demand and attract a steady flow of interested inquiries and guests. Thus, property owners are able to charge competitively high market rates.
Multiple factors combine that indicate your investment is a relatively safe bet – high rental incomes, property appreciation, tax advantages, etc.
Here are the 5 biggest reminders of why investment property in Gulf Shores may be a great fit for you.
1) Profit and Appreciation.
Vacation properties are more likely to grow in value simply by being located in a popular destination like the Gulf Shores area. There are a finite number of beaches and a limited amount of coastline. The rules of supply and demand apply. But remember – there are no guarantees when it comes to property appreciation.
2) Tax Deductions.
Many people who own second homes prefer to keep them unoccupied when not being used for personal enjoyment. If you allow and charge rent for occupancy for no more than two weeks per year, the interest on the mortgage and the property taxes are fully deductible from your gross income. Always check with your tax consultant for final determinations.
3) Rental Income.
If you decide to rent your home, but personally use the property as well, you’ll need to determine whether you’re eligible to deduct operating expenses. To determine this, add up the days you rented the property. If you occupied the property fewer than 10% of the days you rented it or for less than two weeks – whichever is greater – you can deduct all of the operating expenses of the home including interest, utilities, cleaning fees, lawn maintenance, and management fees. Again, consult a professional for clarifications.
4) Familiarity and Convenience.
Returning to the same place time and after time can be comforting as you become familiar and comfortable with the location and the surrounding amenities. Likewise, having a place of your own with familiar possession and supplies simplifies packing and planning.
5) Head start on Retirement.
One common goal of retirement is to have a place of retreat to help us better cope with the things we dislike about our current residence. Think snow. Think freezing temperatures. Locating and buying a second home in Gulf Shores prior to retirement helps you to experience the area’s benefits before retirement. You’ll have an investment property and still have the opportunity to correct or amend your retirement plans. Plus, it could always be a great common location for large family gatherings and reunions.
Whatever your stage in life, Kris Powell and Century 21 Meyer Real Estate can help locate the perfect property for investment, pre-retirement, vacations or family reunions. We really know and love the area and would appreciate the opportunity to show you around.