Are You Ready To Buy Your Second Home?
We all have a dream of the perfect dream house, whether it is a shack on the beach, a mansion somewhere or a cabin in the mountains. Buying a second home is a big decision and one that should not be taken lightly.
Read over the following points to help determine whether now is the right time for you to buy your second home:
Can you afford it?
The cost of your mortgage could be a little different than you expect. If you plan to rent out the property for awhile you could face a higher mortgage. Lenders do this sometimes because they assume there is a greater risk with renters in the home than owners.
Then there are these sorts of expenses among others to consider as well:
- Insurance
- Property tax
- Utilities
- Trash removal
It is also important that you have money around for general and unexpected maintenance expenses. Things go wrong, pipes burst, hot water heaters fail, roofs leak, the list goes on and on. Even landscaping can be an extra expense for you to budget for.
Remember, even when you are away from your second home, the expenses don’t stop.
Where do you want to live?
Living near a beach is great but is it in a location that you will actually have the opportunity to visit on at least a semi-regular basis? You want to buy a second home that you will be able to spend a fair amount of time in. This is a massive expense so you want to make sure you get the most out of it whether you are renting it out or using it as a vacation home. Go with that is convenient for you.
What about insuring your second home?
Your best course of action is to strike up a conversation with your current insurer. If you are getting both of your homes and your cars insured through the same company, they are more likely to give you a better rate.
Certain aspects of the home and yard can affect your insurability as well. For example, if you have a pool you will have a higher insurance rate and if it has no fence around it you could find you can’t get insured at all. These are the types of things you need to bring up with your insurer.
Enjoy your new home
Now that you know what you can afford and where you want to buy it is time to contact a realtor. They will be able to steer you in the right direction, helping you to complete the process of buying your second home.
With the right vacation home you will have a place to go to get away from it all without having to deal with the crowds at hotels. Just make sure to follow the tips above and you will be settled in your new vacation home sooner than you think.