Destin, Florida is a popular vacation area that offers many advantages to those interested in buying property. However, like purchasing a property anywhere, buyers must be careful to avoid some common mistakes that can make or break your investment. Making careful consideration of several different factors can ensure that your decision will be a successful purchase.
1. Buying Over-budget
With so many beautiful properties on the market in Destin, FL, buyers may be tempted to go over their pre-determined budgets in order to get a house that’s closer to the water or has more desirable amenities. However, this action can be a trap that can get you into financial difficulties immediately. Calculate your ability to afford a property carefully and resist the urge to go over budget. The better plan is to choose a property you can easily afford and add on amenities as you become comfortable with the payment.
2. Be Realistic About Additional Costs
Homeowner’s association fees, special assessments, taxes and special types of insurance can quickly add significant amounts to your purchase. Many buyers are taken surprise by these additional costs and may have a difficult time working them into their available budget. Always research any additional fees that may be part of your purchase. Consider any improvements that may cause an increase in taxes and whether special insurance, such as flood insurance or hurricane insurance, must be added to your regular expenses.
3. Don’t Skimp on the Down Payment
Many developers in Florida offer special deals to increase sales of their properties, but this can be problematical for many buyers. A low down payment increases the monthly mortgage payment, and the buyer may find their purchase puts a significant crimp in their monthly budget. Avoid this problem by making your down payment as large as possible to keep monthly costs manageable.
4. Don’t Avoid the Inspection
Having the property inspected is an additional cost that can save you from significant financial outlays later. If a major system has a problem, the inspector will indicate how serious it is or whether you should take a pass on the property altogether. The money spent for a professional inspection can easily be made up by negotiating with the seller.
5. Keep Other Purchases in Line
Having new property is a heady feeling that can lead you into making other purchases of new furniture, new cars and other items that quickly become budget breakers. Resist upgrading other areas of your life until you have worked your new property into the budget comfortably. Then, you can begin to add other items as the need arises.