Buying a Second Home

You are on the market for a second home. Before you rush off to buy that tempting beachfront cottage or the mountain condo right on the ski trail, consider pausing to take a few precautionary steps. When buying a second house, it is far too easy to make rash, emotional decisions that can have stern consequences down the road.

If you don’t have time to read one of the countless books about buying a second home or to hours of research, you can get a summary of the information here. The wealth of information on this topic can be narrowed down to a few logical points to keep in mind.

Location is key. Even if you plan on using a second house only for yourself, make sure you purchase in an area that the property will still appreciate in value. Someday you may want to rent it out if you need the money or get bored with the place, so making an investment in a good area is important. Also, you may want to be sure the location is relatively near your present home to make quick weekends possible and to stay regular on upkeep for yourself or renters. Real estate agents have a variety of market research that can clue you in on renter’s preferences.

Do the math. Just as there are a lot of expenses you aren’t always able to anticipate with your current house, there will be an equal number of ones that come up with a second house. Only it will be harder to manage because you will be further away and not there as often. Costs such as garbage, insurance, landscaping, dues, and taxes need to be calculated to see if you can and want to afford a second house.

Do your research. Do not only visit the house itself, visit the surrounding community as well. Stay there a few days, talk to the neighbors, and get a feel for the area. No matter what time of year it is, ask for pictures of the house from all seasons, it is amazing how different a house can look when not graced by blossoming flowers and trees. Research the area also; finding out about weather, construction, and crime rates can impact the desirability for yourself and future renters.

Cool down before you buy. Don’t get caught up in the moment of a beautiful house. Too often people make rash decisions on second houses, because they are either afraid someone else will buy it before them or they think the house is one-of-a-kind. Houses, especially second houses and vacation getaway houses, will probably still be available months after you look at it, and there is never a shortage of them. You need to think about how much time you will realistically spend there, or if it will be like a gym memberships that gets constant use until March. Also, take into account how far away it is, in other words, if you will actually want to make the drive and if it will even be cost effective to go very often.

After all these things have been considered, you have given yourself a few weeks or months to think about it, and you still want to buy, then go for it and don’t look back.