Twice As Nice: How To Buy A Second Home
Posted on: 29 July 2019
Second homes are not necessarily luxury purchases. Just as stocks and bonds can gain in value, so can a second home. Additionally, a second home might turn out to be an income producer. To help you in your quest for a second home, read on and learn about finances, location, and getting some professional support for your search.
Financial Considerations
Just as those about to buy a primary residence are advised, second home buyers need to speak to a lender and find out how much they can afford to spend on a home. Get prequalifed and preapproved and you'll have a range of home prices to define your search. Additionally, you'll have more confidence that your offers will be accepted and that the mortgage doesn't become a burden. If you choose your home well, you might be able to rent the home out when you are not using it. Buying for investment purposes can involve tax implications, so be sure to speak to a tax accountant if you plan to put your home on the vacation rental market. When budgeting for your second home, be sure to plan for higher maintenance costs due to climate and heavy use. Additionally, some resort areas have higher property taxes and homeowner's insurance policies can cost more.
Location Considerations
Whether you plan to use your home as an investment, a vacation getaway, or as a vacation rental, it pays to think carefully about the location. You can cover all those bases by locating a home in a resort area that your family loves and that attracts both tourists and newcomers. Long-term renters can create less wear and tear on a home, but weekly vacationers can provide a higher level of income. When considering location, think about the following points:
- Convenience – You are far more likely to use a second home that is within driving distance to your primary residence.
- Necessities – If you are going to rent your second home out to others, consider nearby grocery stores and other shopping.
- Attractions – The closer your second home is to the water, the ski lodge, the amusement park, etc., the more interest you will have from renters.
Get Professional Support
Speak to a local real estate agent and get a referral for an agent in the target area. Agents who are familiar with the area can provide inside knowledge on good neighborhoods, homeowner association restrictions, upcoming building projects, and more. To learn more about purchasing a second home, speak to an real estate agent.
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