Real Estate Investment – What to Know Before Buying a Second House

Real Estate Investment - What to Know Before Buying a Second House




Ready to buy your second home? Either you’ve been thinking about it after many vacations, or it’s something that just recently popped into your mind. Whatever the reason, buying a second house can be a great investment.

However, even though you’ve been through the housing market and home buying scheme before, some things change when investing in a second home. A few of them seem simple, but there might have been some that you didn’t think of at all.

Does the House Match Your Long-Term Goals

Different lifestyles call for different second homes. You need to dig down and ask why you want this second home. Do you want somewhere to get away from it all on the weekends? Or are you looking for somewhere that you can eventually retire? Maybe you’re looking for something in your favourite vacation spot? Or are you planning on buying a home for your kid who will be living off-campus next year at college? Depending on the reason, it will require different considerations. For somewhere to get away from it all, you don’t want to look super far away. If it’s less than a day’s drive from your current home that would be best, that way you can spend as much time, there as possible. For somewhere to retire, make sure the home has good health care services nearby and is very accessible. For a vacation spot, consider the year-round weather in the area. As for your college student, consider accessibility and distance from the house to campus.

How Is the Area During the Off-Season

Every area feels amazing during a vacation. It’s away from the normality of your life, which makes it seem better. But the place you love to vacation isn’t necessarily always a vacation destination. Especially if you’re looking to retire in your second home, you need to check out the general feel and environment during the off-season. The vibe, people, and service might completely change from vacation on-season to off-season. You never know if the place will offer the same benefits during the whole year or if the perks were tourist exclusive. If it’s somewhere in or near the tropics, you’ll also want to factor in things like hurricane or tsunami season.

Have You Calculated Additional Expenses

With a second home, you need to carefully consider the extra expenses. Insurance and maintenance costs add up, especially when you have two homes. Plus, the most popular tend to be prone to extreme weather. Websites like isoldmyhouse.com offer addresses and photos so that you can view the area before making a decision. Florida, a popular destination for retirement, is extremely prone to flooding and hurricanes. California has extreme droughts and frequent forest fires. Look at the area you’re interested in and make sure you calculate decent insurance and potential weather damages into your expenses. That should be done before signing a mortgage.

Is Renting Out Your Second Home an Option

Renting out a second house is a good option for those who are using it as a vacation home or a place where they plan to retire. If you rent out your home while you’re waiting to retire, you can use the property to generate additional income. You don’t have to sink money into a house that won’t be occupied 90% of the time. Just make sure that you are checking the homeowner’s rules and Fair Housing Act before you start to rent out your second home to people.

Now to Find the Perfect Place

The only thing left after following these tips is to find the right place to live. This might take some time but don’t fret. Soon the perfect second home will be yours. Then you’ll be the owner of not only one home but two.

Contact

World's Best Luxury Real Estate

  Solespire Media Inc.
  Vancouver, BC, Canada

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