Logistics of Purchasing a Sanibel Beach House That are Good to Consider Before You Buy

Logistics of Purchasing a Sanibel Beach House That are Good to Consider Before You BuyReal estate is one of the best investments you can make, especially in America. It is one of the few things you can purchase that increases your net worth and makes you money while also being able to utilize the item and benefit from it. If you are considering purchasing a Sanibel beach home as a vacation home it can be a very beneficial investment. And though it seems like the dream situation to have a home away from home in the most beautiful spot in Florida, there are some things to consider before making this large investment.

Cost and Difference in Securing a Loan

Beach properties, not surprisingly, come with a much higher price tag than other properties especially if those beach properties are on desirable tropical islands just off the coast of Florida. The real estate on Sanibel Island comes at a much higher price point than other locations but it is well worth the investment because it is a dream property. However, if you use a mortgage to purchase a Sanibel beach home as a vacation property it is good to know that the process for securing a mortgage loan on a secondary home is a little bit different.

Often a lender will want to see higher levels of qualification from a borrower when lending money on a second home. This is because a second home is not seen as a necessity to life and as such a lender is taking a bigger risk and lending out money on a second property as compared to a primary residence. This can mean that a borrower will need to prove a higher credit score and maybe even a longer employment history as compared to qualifying for a loan on a primary home. You may also be looking at a higher down payment requirement or even a bit of a higher interest rate with the increase in risk. This is all because a lender wants to make sure that the borrower is well within their means to afford purchasing a second home especially if it is in an area where real estate prices are higher.


Insurance on a second home can be more expensive as compared to a primary home purchase. When your secondary home purchase is in an area like the beach it can be even more expensive for coverage. This is because of all of the potential harsh weather that a beach home can come across including flooding and harsh winds. It is always good to check into how much insurance will cost for a Sanibel vacation home on the beach including any extra supplemental insurance you may need like flood insurance which is not included in standard homeowners insurance. This is often what is called a hidden cost of homeownership just because homebuyers rarely factor it in when budgeting for the purchase of a home. Many times buyers only budget for the cost of a down payment, a mortgage, and closing costs and forget about other necessities of owning the home.

Hidden Costs

Speaking of hidden costs for homeownership you probably are well aware of all of the fine details of owning a home with your primary residence but you want to also factor in these costs with your second home. While you may not be running the energy quite as often it is still going to be a cost you will take on owning a second property. If you plan to rent out the property when you aren't there you also want to be aware of any costs to keep the home in comfortable condition for those renting your property. It is also good to note that there is a limitation on how many days you can rent your property to other people before it is considered an income property and not just a second home. This will bring with it more tax responsibility that some vacation homebuyers don't often think about. While you can still benefit from renting them out and it may even end up paying for itself it is so good to be aware of all of the costs and responsibilities of renting out your property.


No matter whether you keep your Sanibel dream vacation home to yourself or you decide to share it and rent it out you will need to maintain the home. There are extra maintenance responsibilities when renting out the home such as making sure there is someone always available nearby if there's an issue or deep cleaning in between each guest. All of these should be factored into whether it would be worth renting out the property. 

If your thought in purchasing a dream Sanibel vacation property is to be able to rent it out to be able to afford it then you will want to make sure you talk over with a financial professional a specific property you are looking at to ensure that this plan will work out. You want to make sure that you are able to generate enough income by charging a high enough rental price and through keeping your home rented to be able to make it work. If you are not already a financial or business-minded person it is always best to have somebody run through the numbers with you to ensure that you will be able to bring in enough money to help you make the payments on your dream vacation property. 

Purchasing real estate is a great way to build a wealth portfolio when you have done your homework and know that it is within your personal affordable financial means. Purchasing a vacation property in Sanibel is a dream come true for many people and a great way to enjoy one of the most amazing locations in Florida while increasing your net worth at the same time.

If you are considering a vacation home purchase on Sanibel Island I am here to help. Contact me anytime I can help you find a great property in an amazing location on the island. Let's talk about what type of home you are dreaming about and get started turning your dream into a reality. Contact me anytime with any Sanibel or Captiva Island real estate needs.

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