Imagine. Summer vacations and weekend getaways to your home away from home, where you can come and go as you like, with anyone you’d like, whenever you’d like. Picture yourself escaping from it all to the peace and privacy of your second home, where you don’t deal with crowds or annoyances or no vacancies.
These are the dreams of [second] home ownership.
In today’s society, owning a second property, whether for investment or vacation purposes (or both) is growing more and more popular. There are a lot of benefits, from convenience and comfort to financial equity and savvy savings.
How can you know if you should take the plunge? And what issues are worth investigating before you dive into a new mortgage?
Step One: Be informed about the market.
Learn everything you can about the location of your potential purchase. Is it a tourist area? What are home sales like? Does the area tend to appreciate much? A good buyer is an informed buyer, so do your homework.
Also, if you’re looking to purchase mainly for the investment opportunity (aka, resale value), you’ll want to buy in a hot area, where there is strong demand. Be on the lookout in communities near popular attractions or with great vacation weather.
Step Two: Know what you can afford.
The same rules that apply to buying your first home come into play here. Talk with qualified mortgage professionals at Buy Owner’s authorized mortgage company, Guaranteed Rate. Then, armed with the knowledge of what you can spend, you’ll be able to decide what you want to spend.
Step Three: Evaluate your needs.
How often do you vacation, and what’s your typical vacation budget like for a given year? Will buying a second home prevent you from alternative trips, and is that OK? What do you want from this purchase–a weekend getaway, a summer cabin or a rental property? Crunching some numbers and working through different scenarios can make all the difference in how confident you feel about going forward.
After you’ve researched and evaluated the market and your needs, if you’re ready to buy, what should you do?
Head over to Buyowner.com to search through the best of the for-sale-by-owner listings available! Whether you want an oceanfront condo or a rural country estate, Buy Owner has it all!
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These are some pretty good tips to begin with, when trying to decide on whether or not it is worth it to buy a second home. Yet, there are some alternatives to buying a second home vs. buying a rental home. It all comes down to whether or not you will be inhabiting this other home or if you would like to make some money off of it. I think that the following article gives the differences between the two quite nicely: