A few tips for investment buyers

With low mortgage rates, home values rising and rental demand remaining strong, investment buyers are holding their ground in the real estate market. Since 2014, sales to individual investors have made up roughly one-fifth of all sales and have risen each year.

According to the National Association of Realtors annual Investment and Vacation Home Buyers Survey, nearly 2 million vacation and investment properties were purchased in 2017.

With a steady stream of investment purchasers in the market, interested buyers should remember to turn to a Realtor (a member of the NAR, the National Association of Realtors) for advice before buying that vacation home or investment property. A Realtor is your expert professional when it comes to buying a home. He or she will help you find the right property that fits your budget and will negotiate on your behalf to ensure you get the best deal.

If you are considering buying a second home for your family’s vacation getaway or as an investment property for additional income, here are some important tips to keep in mind:

Call a professional. Realtors can help point to areas with the best properties for vacation or investment homes. NAR’s survey found that buyers typically purchased vacation property 200 miles from their primary residence. Even if you are familiar with the targeted search area, chances are you are not up to speed on local market conditions. That’s where a Realtor can come in and educate you on demand levels and future resale values in the area.

Get your finances in order. Getting a mortgage these days can be difficult, especially for second-home owners. Adding another mortgage is going to expand your debt-toincome ratio and you’ll likely need to make a substantial down payment on any secondhome purchase. So be ready to dive into some paperwork with your agent at your side to ensure you can find the best property within your budget at the most favorable terms.

Brush up on rental regulations. Many second-home owners rent out their properties to earn extra income. If you are planning to rent out a second home, be sure to understand the rules and regulations affiliated with rental agreements. Laws can vary from one town to another, so it is crucial that you understand all the local ordinances before you open the door to tenants in your home. Working with a Realtor will give you insights on the rules and laws of a property before you decide to make an offer.