Tips when buying a Second Home!
- Hire a 4 Sale Real Estate agent to guide you through the process. Let your agent know your criteria, activities, expectations and things you do and don’t want in this home.
- Don’t impulse buy! Ask yourself some questions first: What is affordable for your monthly budget? What fits your needs in this home? Are you looking at this home as a long-term transition into retirement or is this short-term and you would be selling at some point? The answers to these questions would determine what would be important to have access to in the immediate area and possibly assessing resale value in your purchasing decision.
- Get to know the area. Visit the place in the off-season. Ask locals about their points of view on this area.
- Think about what a second home requires from you; maintenance, driving route and time you will invest in addition to your primary residence. Would a townhome or condo work for you so you don’t have the year-round maintenance to worry about? Or, is privacy more important to you, so a single-family home is more what you want and you don’t mind the maintenance?
- Shop around for a mortgage. Nothing says you have to use your current mortgage lender, however, they know your history best. See what else is out there and make sure you are getting the best deal by comparing. Remember this is an additional expense each month and you want to make it easy on the pocket book.
- Remember to add up the expenses that come along with this second home such as: insurance, maintenance, risk for certain types of weather, upkeep and repairs. Get quotes and again, compare value to the dollar for your second home. Bundling on your current policy can help as well if they handle the area of your second home.
- There is the option of fractional or multiple owners (family or friends) to share in and enjoy the second home as a vacation/getaway home. Consider how much time you would be actually spending there and what is the best option for you.
- Check out tax benefits. If you do rental of the home, depending on how many days a year, you can write off things like maintenance and cleaning. You may have to claim the rent as income, again, depending on how many days a year you rent the home out.
- Speaking of renting, you may rent out your second home for extra income and this would cover monthly costs for you. However, being a landlord comes with responsibilities and laws to follow, so get to know this information before renting your home out.
Thank you for visiting our BLOG! Call if you have questions and/or you’re in need of a great real estate agent to assist you in getting started.