Everything You Need To Know About Buying a Second Home
Purchasing a second home is a big financial decision that requires a great deal of consideration! If you are in the financial space to purchase a second home, this article is the one for you. Let’s explore the ins and outs of deciding if your financials and personal life are in the right space for another property.
First and foremost, it is important to decide what you want your second home to be used for. There are multiple different purposes that you can use a second property for, including but not limited to:
Take inventory of what you want this second property to be used for so that the rest of the planning process can follow this north star!
Auditing your finances is a crucial step to understanding if you can afford a second home, and when. Working with a real estate professional and financial advisor to take inventory of your current financial standing is always a good idea! Be sure to assess your savings, other assessments, and comfort with risk before deciding on a budget. Don’t forget to factor in interest rates, loan types, tax implications, and more.
Insuring your home is a responsible step to securing the asset that is your new home. Be sure that you understand the insurance implications that apply to the homes that you are touring. This includes zoning laws (especially if you plan to rent!), homeowners insurance that includes comprehensive coverage, and HOA rules if applicable.
When it comes to finding your second home, there are multiple options to choose from. You can choose to pick a traditional mortgage plan if you have good credit, a home equity loan if you are planning to finance, or a cash purchase if you have enough cash to put down for purchasing the home. Whatever you choose — make sure you are confident in your financial standing and the security of your first property!
If you are planning to use your second home for personal use and enjoyment, surveying the surrounding area for community amenities is an important part of your touring process! Local services such as grocery stores, childcare centers, hospitals, and gyms can make a property much more attractive — especially if you plan on renting!
If you are planning on using your second home to build wealth, assessing market trends and growth potential is another key factor to be aware of when assessing possible second homes. Search for areas with strong appreciation potential, or even properties that are considered as “fixer-uppers” to make fast work of your investment. If you are planning on renting
We hope this article helped you better understand everything you need to know about buying a second home! This is an exciting time and a big accomplishment — so make sure you work with one of our professionals at VSells&Assocates.
Whether you are buying or selling, we at VSells & Associates make it our mission to guide our clients through the whole process. We make moving simple, straightforward, and as stress-free as possible.