Take these considerations into account before buying a second home.
The pandemic has changed the housing goals of many Americans. People are working from home and realizing that they need somewhere to go that’s away from the hustle and bustle of their daily lives. As such, we’re seeing a housing boom driven by people searching for second homes and vacation properties.
If you’ve been thinking about buying a second home, however, there are a few things you’ll want to consider first:
1. The type of lifestyle you want: Do you want a place you can escape to at a moment’s notice, or do you want something far away that you can travel to? Do you want something drastically different from your current environment, or do you want a similar place in a new area?
2. Expenses that you’ll need to budget for: You’ll be paying for more than just the cost of your home when you buy a second home. You’ll pay for utilities, taxes, landscaping, maintenance, and more. Second homes usually have more costs associated with them because you can’t always be there to do things yourself.
3. How you’ll pay for the property: Financing can be more expensive for second homes due to different down payment expectations, financing options, and taxes.
4. Renting out your home: Many resort destinations allow for nightly rentals or Airbnb use, which can help you save on costs when you aren’t there. So, you need to think about whether you want your home available at a moment’s notice or if you want to gain some extra income. Also, some areas do not allow Airbnb and similar rental services, so be aware of what you can and cannot do with your second home.
If you have any questions about buying a second home, or if you’d like more information about our market, feel free to reach out to us. We look forward to hearing from you soon.