Crucial things to consider while buying a second home, Online property advice, Buy houses tips

Things To Consider While Buying A Second Home

27 Apr 2021

People often look for a respite from their hectic lifestyles and wish to escape into a serenity for a while. Hence, they look for second homes in a smaller city or countryside to relish the real perks of life with their family or friends.

Things To Consider While Buying A Second Home Guide

If you are also planning to buy a second home, here are a few things you should keep in mind.

Research well

The prospect of buying a second home can be exciting. Most people put a lot of thought when buying their first home, but when it comes to a second home, they tend to get a little adventurous and make decisions on impulse. However, it is the wrong approach.

Never buy a home without thoroughly researching your purchase. Research about the town, neighborhood, recent developments, and real estate market before making an impulsive purchase.

Evaluate your long-term goals

Buy a second home that fulfils your long-term goals. If you want a home to spend your weekends away from the hustle and bustle of the city, buy a home that is a few hours drive away from your primary home. It should be easily accessible so that maintenance doesn’t become a hassle.

If you plan to rent out your second home, buy a property in a city frequented by tourists.

Talk to the locals before buying

The idea of living in your favorite vacation spot may seem enticing, but remember, you known the place only from a tourist’s perspective. Before buying a property, talk to the locals to get a non-tourist perspective, and then decide whether you would like to buy a property there or not.

Also, visit the destination during the off-season before making the big purchase.

Decide the kind of home you want

Do you want a penthouse or a cottage? A single-bedroom home or a large mansion? Decide the type of home you want based on your needs.

If you want privacy, buying a single-family home is ideal for you. If you want a home that doesn’t require much maintenance, look for condos.

Reach out to a local real estate agent

Buying a house in a different city can be very tricky. It can land you in a bad deal. Hence, reach out to a local real estate agent.

So if you are a New Yorker and want to buy a home in Spokane, look for good real estate agents Spokane.

Don’t overlook the additional expenses

When buying a home, don’t overlook the extra expenses, such as insurance and maintenance. The insurance rates for some areas are higher than others. Buying a house in areas with high risk of floods, forest fires, hurricanes, hail storms, etc., can subject you to high premiums.

Look for good mortgage deals

In the excitement of buying a second home, you may not want to look around for deals and accept the terms the lender is extending. But take your time and shop around for a mortgage. As the market keeps changing, you will certainly find a good deal.

Look for tax benefits

If you plan to rent out your second home for less than 15 days a year, you are not liable to pay tax benefits. However, you cannot deduct any rental expense. If you rent out your property for more than 15 days a year, you will need to show your income, but then, you can deduct the rental expenses, such as cleaning and maintenance.

The bottom line

Whether you wish to buy a second home for yourself or want to rent it out for additional income, deciding in a haste can haunt you for a long time. So, take your time, reflect on all these points, and then make a sensible investment.

Comments on Consider While Buying A Second Home article are welcome.