I think that many of us have dreamed about buying a second home. I know I have! The idea of having my own vacation home is something I have always wished for. And this year, vacation home sales are through the roof.
According to the National Association of Realtors, the pandemic has increased vacation home sales by 44%! However, owning a second home is a big undertaking so before you jump on the bandwagon, there is a lot to consider. Take a look at these tips that may help you decide if you are really ready for that vacation house.
- Consider The Financial Impact
Any home owner knows that a house costs a lot of money. There is the initial down payment, the ongoing mortgage and the taxes that you have to pay indefinitely, just to name a few of the basic costs of owning a home. In addition to those basic expenses, you also need to pay for any upgrades or repairs that your home may need over the years. All of these expenses add up!
Before purchasing a second home, be sure to write out a detailed budget and make sure you can afford all of the expenses of both your first and second home. My husband and I have been looking into getting our second home and we found valuable insights about a second mortgage using MortgageCalculators.info. This site has a list of list of mortgage calculators to find the one that best fits your needs.
Purchasing a second home is a huge monetary commitment so be sure you are ready!
- Where Will You Buy?
Do you already know where you would want to buy a second home? I know that my family and I have our favorite vacation spots that would be ideal locations for a second home. If you own a home in a vacation area, that will likely be your go-to vacation for years to come. Are you okay with visiting the same place again and again? Owning a second home may make it harder to travel to other places. Keep this in mind before committing to a second home and a long-term destination.
- Do You Want To Rent Your Second Home?
When thinking about purchasing a second home, you should consider how often you will be using the house. If it is going to be vacant the majority of the time, you may want to consider renting. Collecting rental income can be a great way to subsidize your vacation home, making it more affordable. You may even be able to make money through renting. A second home can be more of a financial investment rather than a full expense. Certain areas will make more money in rental income as well so, if you plan to use your second home as a source of income, be sure to buy a home in a popular rental location.
- What Kind of Home Should You Buy
Do you dream of having a condo on the water? Or a cabin in the woods? Or perhaps you are looking for a large house on a lake. Think about the kind of property you would like before buying. Remember that a second home is double he maintenance so something smaller and more low-key than your primary residence may be desirable. Keep an open mind when looking at second homes though, you never know what kind of house you may fall in love with!
- Do Not Impulse Buy
I have often returned home from a great vacation and had the urge to buy a second home. I want to make the vacation last forever! Of course, this isn’t a very smart thing to do. If you buy a new home on a whim, you may end up regretting it. Be sure to assess if you really want a second home. Then plan, plan, plan! Shop for a good mortgage, use a well-reputed site to help you calculate your mortgage, make a budget and organize your ideas for your vacation home. You will be happy you did!
Yes, we all wish we could have a second home and maybe someday, we all can! I know that I will continue to dream about a vacation home by the ocean. But, I can’t pull the trigger just yet! Be smart but also keep on dreaming. Where would you want to buy a second home?
These are great tips for purchasing a second home and even a first home.