Buying a home can be one of the biggest investments people make throughout their lives. The purchase price of a home automatically makes owning one a big investment! But, how about buying a second home? For many people, a second home gives them a chance to live somewhere else and be somebody else. Just imagine, leaving your current home, making no reservations, and going to your second home where every day seems like a vacation. But, owning a second home comes with many strings attached. You have to run the numbers and see whether you can afford it. Then you have to find a local real estate agent and find the best location for your new home. All of this requires a lot of researching and hard work. So, if you are planning on buying a second home, here are some things to consider:
1. Can You Afford a Second Home?
It goes without saying that this is one of the most important questions you must ask yourself before starting this journey. Run your numbers, check your mortgage, debts, and savings to see if purchasing is even an option. Remember buying a second home is just as big of an investment as purchasing your first home. Not only will you have a double mortgage, you will also have double the bills, taxes, insurance, maintenance cost, etc. Yes, owning a second home sounds like a dream come true, but can you afford to pay for everything that comes with it? Resist your urge to impulse buy a second home and make sure to do your research. Second homes can come with the expenses buyers did not know existed. We recommend doing thorough research and/or to talking to specialists like a real estate agent and lender. Once you are confident you made the right decision, pack your bags and look for an easy way to find affordable relocation specialists to help you relocate some necessary items into your second home.
2. Evaluate Your Needs
After setting your budget, you must make sure that you know exactly what you need in your second home for. Some people want it for extra income. You can make money by investing in a second home but it also comes with a lot of obligations. So, ask yourself whether you can be a landlord or not. Many people want a break from everyday life and want to purchase a vacation home. Bear in mind, that vacation homes come in all shapes and sizes and that you must purchase one that suits your needs. That means that if you want a weekend getaway home, you must find one that is a couple of hours away from your current property. If you want to buy a vacation home on some island far away, you must consider whether or not you can maintain it while living in your primary home. These are just some of the things you need to consider before buying your second home. Before you buy your second home and make any major decisions, make sure that you can handle everything first.
3. Location, Location!
When it comes to location, your options are limitless. It all depends on your needs and your budget, see what suits you best. For example, if you plan on buying a second home that you will rent, you must find a suitable location. You cannot rent a beach home that is secluded and far away from amenities. If you plan on purchasing a condo near downtown, you can not rent an apartment that is far away from a business district. You must find something that you will enjoy for the rest of your life, not just for a couple of seasons. If you plan on retiring, you must find a home that is suitable for elders and close to the amenities you might need. If you want a second home that you will use for your family trips, make sure that the house next door is not occupied by college students. These are just some examples, but anything can happen. By doing thorough research before investing, a lot of home buyers can avoid making these types of mistakes. Make sure to talk to a local real estate agent to get a better idea of neighborhoods based on your desires.
4. Find a Local Real Estate Agent
Finding a local real estate agent can be hard, especially if you plan on buying a second home far away like another country or continent. You do not know the local trends and you may not even speak the language. That is why it is really important to find a local real estate agent. They will show you to properties you did not even see. They will also help you find a home that suits your needs within your budget. A real estate agent will tell you about the property, it's amenities, safety, schools, and so much more. It's a good idea to run the numbers with your agent so that both of you know what to look for, what to expect, and understand the market. Do not ask yourself do you really need a real estate agent, just find one. Buying a second home can be a stress-free experience if you hire the right agent for the job.
5. Calculate Additional Costs
Another thing to consider before buying a second home are all the additional costs that come with it. Besides paying bills, taxes and other expenses, you have to pay attention to some other factors as well. For example, if you plan on purchasing a cottage in the mountains, you must have insurance that covers forest fires. The same goes for buying a beach house - homeowners must know how much insurance they need in case of floods, hurricanes, and other weather conditions. Keep in mind that insurance costs in those areas can be pricey. These are just some of the factors to consider before buying a second home. Be careful!