Planning on Buying a Second Home? 5 Things to Cons …

Planning on Buying a Second Home? 5 Things to Cons …

Congratulations! You’re ready to buy a second home. Whether you’re looking for new real estate to supplement your income or are in need of an oasis to call your own, buying a second home can be an excellent option. However, there are some things you must consider prior to making such a large investment and commitment. So, before you sign on the dotted line, here are the things you need to research in order to ensure a second home is within your best interest.

1. The Costs of Owning a Home

Inarguably, the most important factor of buying a second home is whether or not you can afford it. While you may be able to afford the sale price, there are many additional expenses that may follow, all of which need to be factored into your budget. Fees associated with the mortgage, insurance, utilities, maintenance and even property tax can quickly make an affordable second home unaffordable.

2. The Cost of Not Being On-Sight

In addition to the typical fees of owning a home, repairs and maintenance costs may be more surprising than what you’re used to. Since you won’t be living in your second home on a regular basis, you don’t have the opportunity to monitor and/or repair any problems that occur. Thus, even the slightest problems can worsen and become more expensive before you even become aware of them.

3. The Cost of Hiring Help

Since you won’t be living in the home on a regular basis, you will likely need to hire additional help to ensure proper maintenance of your home. Everything from lawn care to minor fixes you would typically do yourself may now come at an additional cost since you won’t be living in your second home full-time.

4. The Reason for Buying A Second Home

Once you have factored in all the additional costs that may come with the purchase of a second home, you will want to determine whether you’re buying for the right reasons. Often times, people choose to buy a second home to supplement their income or to have a vacation home to enjoy. However, if you are buying a vacation home to save on hotel and other travel fees, or are buying a second home to rent out, with the intention of getting rich quick, you may want to reconsider.

Make sure your logic for buying a second home is reasonable. It’s an investment, and as such, should come with realistic expectations.

5. How the House Will Be Used When You’re Not There

You also need to consider how or who will be using the house when you aren’t. Some people choose to rent their second home out when it’s not in use, which is beneficial for many reasons. It keeps the home occupied which could potentially deter theft and robbery. It also provides you with the opportunity to find out about repairs and maintenance requirements. However, there is also the downside of potential damaging occurring at the hands of someone else, and the fees that follow. As such, you may not want to purchase an extremely fancy and luxurious home and décor.

So, always analyze the pros and cons of different ways the house can be used when you’re not there, and discover the best option for you. If you do decide to rent out the home, you will need to consider the tax rules and rental requirements.

Lastly, you want to consider whether you have the time and effort for a second home. At first, it may seem like buying a second home is easy and affordable, but it can come with several expectations and complications that could require a significant amount of time.