Five Secrets About Buying A Second Home

Here are five key points to consider when thinking about buying a second home.

• Know the right time to buy. One of those times is now. The correcting real estate market is shining on the second home sector. More properties on the market, relatively low interest rates and motivated sellers have combined to put the buyer back in the driver's seat.

• Know if a second home purchase makes financial sense. A second makes sense in the first place if you can create a realistic, affordable budget in advance so that you buy within your means. Stretching here is not very healthy. Take stock of your current and projected income, expenses and rental income (if you plan to rent out the property) and do the math. We have relationships with accountants and financial planners that can help you weigh the financial risks.

• Know where to go. Choose a location based both on the potential for property's value to appreciate -- especially if you aren't going to rent it -- and guest-preferred destinations. Our Real estate agents can provide the market research you need.

• Know about rental income that can offset your expenses. Rent your property out for just part of the year and you can subsidize the cost of owning a second home.

  "Keep in mind that being a landlord doesn't mean sitting back and watching rent checks roll in. It takes time, money and commitment. Know what you're getting into before you venture too far down that path".

• Finally, know how to protect your investment. Whether your second home is a pure investment, a weekend getaway, or a place to eventually enjoy when you retire, real estate is an Investment. Maintain the property, keep it fully insured, have it inspected regularly, and watch your equity grow.

Has this information been of benefit to you? Are you thinking of buying a second home in the future? Our Real Estate and Mortgage Consultants are available to answer any of your questions. Give us a call.