Southern Louisiana Vacation Homes

Southeast Louisiana Vacation Home


Buying A Vacation Home In Southeast Louisiana


Are you thinking of purchasing real estate close to the beauty of Lake Pontchartrain? Considering buying a home in Covington or Mandeville? Does your family have dreams of a getaway in an area that they love?

There are several steps that a homeowner can take to ensure that the process of buying a vacation home is free of stress and goes smoothly.

1. Decide on the type of home to match your lifestyle

You do not necessarily have to own a primary residence before choosing a vacation home. Maybe it’s wanting to buy a vacation condo and renting in the city, or living is chosen, tax and finance options are similar.

2. Decide how it will be used

The property can be for:

  • Investment
  • Primary residence
  • Second home

For tax and financing reasons, consider how the home will be owned and used. If it is your primary residence, for example, you might be able to purchase it with as little as a 3 percent down payment; this is if your loan does not exceed a certain amount.

A second home can be used at any time; however, lenders do not want to see it rented out. Buy it for 20 percent down; present homeowners can qualify by using the cost of a primary home as well as secondary home cost. The tax benefits and rates of the mortgage will be the same as for your primary residence.

An investment property can be used as one wishes and rented out when not used. Rates can be somewhat higher than rates for secondary homes. Rental income can help an investor qualify for the loan as well as his primary home and cost of his investment home. Although tax may be less beneficial, the income from rental might offset this, making it more affordable.

3. Understand what your total costs will be

Determine what is affordable as well as the the money that will be available for the down payment, closing costs and a reserve. Make a plan to account for costs, that are not included by the lender, such as:

  • Cable, gas and electric
  • Travel costs to your new home
  • Furnishings
  • Maintenance costs, such as the pool, landscaping and cleaning

4. Become aware of monthly costs as well as transaction costs

You can see an example of a chart that shows you the difference between the costs of whether your home is a primary or secondary home or an investment. Zillow shows a chart which compares costs, depending on how the home is used.

Your local Realtor can help clarify the fees as well as advise on the types of vacation homes that are available. They will be aware of zoning rules regarding renting out your property.

If you buy a home or sell a home in the Southeast Louisiana area, your local Realtor knows the real estate in the area and can advise regarding the rules for renting the property out short-term as New Orleans is in an affordable housing crisis. They can help structure your offer on the home chosen as well as negotiate on your priorities in the actual deal.

If the time has come to buy a home Mandeville as an investment, primary residence or vacation home, you’ll be able to relax knowing that homework has been done and you have sought the help of an expert Realtor who knows this beautiful Louisiana neighborhood.