Steps for Buying a Second Home
For most homebuyers, owning a second home can seem like a dream. But how can you make a dream into reality? You set goals. You set goals, and make lists. Those lists are plans that can lead to the accomplishment of your goal.
The perfect condo by the beach, the quiet, scenic cabin in the mountains, the house by the lake – all of these second home options seem dreamy, but can be yours if you truly want it to be.
Here are some ways to achieve that goal of a second home.
Can you afford it?
Keep in mind that mortgage companies may charge your second home more in interest if you intend on renting it out. Most companies consider this risky.
Besides a second mortgage, think about everything it takes to keep you first home running. You have your bills that come monthly: gas, electric, water, sewage, TV/Internet, etc. On top of that, what happens if something breaks? What if the air conditioner stopped working, or the food disposal didn’t turn on? It could happen!
Would someone be able to maintain the yard? If not you, what about all of the landscaping costs? These are definitely things to be keeping in mind. Also, hiring a property manager may be beneficial if you won’t be there as much.
Location, Location
That wonderful beach location may sound awesome, but wouldn’t you rather be able to visit it more often than once or twice a year? Unless you are renting it out, lay out options of where you want your second home and list the pros and cons of each one.
Insurance, a second time
Once the dust has settled, and you have gotten used to all of the normal expenses of a second home, it is time to sit down with your insurance agent. It would be nice to sit down with someone you already have a good relationship with. They will know what you expect and want. If you don’t know them well, try to create a relationship!
Until you do your research, you do not know what your rates will be. You may get good rates if you use the same agent but it does not hurt to shop around. Keep in mind, your insurance rates may still go up depending on where your second home is.
Find and Enjoy
Once you have made all of the preparations, done all of your homework, and identified potential neighborhoods, it’s time to find this dream second home of yours.
Remember that you will be able to spend as much time as you want in your new vacation home. You will get to enjoy it, and it’s yours! You could have sufficient privacy (depending on where). It could also reward you financially if you choose to rent it out. Other perks include tax benefits.
Your second home should be a way out of everyday life, a time to relax and spend time with those you love. All of this can be done in the comfort of your own home. Be prepared for the additional expenses, do your homework and get busy enjoying your new spot!