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7 Tips To Buying A St John Investment Vacation Property

7 Tips To Buying A St John Investment Vacation Property


You’ve done the hard work for years, and now are looking to make a sound investment.  You want to make one that will bring you and your family great times and special memories – the purchase of a vacation property.  But in order to make that investment sound there are seven things that are essential to making the right decision.  Check out our list below:

1. Location! Location! Location!

This principle is really no different from the investment you made in your primary residence.  Conditions within a property can always be fixed.  What cannot be fixed is a property that is located within an area that is rapidly depreciating.  These are almost always a very poor investment.  Before you buy, learn all you can about a neighborhood and any development plans that are currently in the works.

2. Consider the Financial Responsibility

Do you plan on occupying your vacation home exclusively as a home away from home?  Or are you planning on renting it out during times you know you will not be there?  You must also consider that your new vacation property may also have a homeowner’s association with regular dues.  You may also have to have the property insured for floods if it is in a beach area, and keep in mind the usual utility expenses, cleaning services, and landscaping services.

3. Know That Loan Requirements are Different

Second homes and investment properties are different from your primary residence as they often require as much as a 20% down payment.  It is typical for mortgage insurance to not be available for these types of properties.  If you plan on using potential rental income from the property to help you to qualify for the loan, you will need to provide around two years of verifiable experience as a property manager.  You should also know that home equity financing or mortgage financing is not available for certain types of properties such as time-shares, boarding homes, condominiums, and bed and breakfasts.

st john property investment4. Chat Up Your New Neighbors

If you have any chance at all to talk to your potential new neighbors before you make an investment, do it.  Ask them what they like – and dislike – about the location of the property and the neighborhood in general.  Perhaps the area floods when rains are torrential?  Are police and emergency vehicle sirens constantly going off after 10 PM at night?  Have there been an inordinate amount of thefts and burglaries in the area over the last year or so?  They also might be a source of good news.  A corner liquor store may have been recently bought out and is under contract to be replaced with a modern office building, in effect, increasing the property value.

Neighbors can be a great source of information on a variety of subjects, and can provide all of the detail that is not included in those real estate brochures.  This information could very well save you a lot of time and money.

5. Check Comparable Sales Prices

In the age of the internet, this is easier than you might think, as all you have to do is enter the property address and/or neighborhood and city information to  Here you can check out the sales history of a property and the sales prices of comparable homes.  This will allow you to get a good feel for the mortgage costs, potential yields on renting the property out, and get a better idea of the real value of a home.

st john property investment6. Crunch the Numbers

The best property investors will look at numerous income and expense scenarios before taking the plunge.  There are at least three possible scenarios to look at, best case, neutral, and worst case.  If you can stay comfortable with the worst case scenario numbers for five years, you can afford the property.  One of the assumptions for worst case should be the complete loss of your primary income.  Another worst case scenario is a loss of up to 40% in the value of the property, and increase in interest rates.

7. Know Area Rental Rates and How to Market Your Vacation Home

If you are like many investors and want this to be a source of income, you can check the rental rates for similar properties through  This is also an excellent place to market your property once you have closed on a deal.  You can also market your rental property on a number of other sites including  The more places you market your property, the more visible it will be to people.

If you follow this sound advice, you are much more likely to have the St John vacation home of your dreams.  You can also avoid a potential money pit nightmare that you will soon regret that could undermine all of the hard work you have done to get to this point in life.

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