We all dream about having a getaway in the woods or on an island somewhere. Unfortunately, most of us never turn that dream into a reality. But some people do, and you can, too. When you have the right answers to these four questions, you might be ready to buy a second home.
Can I afford it?
It’s easy enough to plug your numbers into a mortgage calculator and find out how the monthly payment would fit into your existing budget. But since you’re already a homeowner, you know that there are many more expenses that go into a house beyond the mortgage. These include:
- property taxes
- utilities
- maintenance
- insurance.
Keep in mind that the interest rates for second homes are often greater than those for first homes, because second homes represent a higher risk to the mortgage lender. And if you’re not going to be able to visit your second home regularly all year round, you may want to factor in the expense of a property manager.
When you’ve added up all of the costs of homeownership and you still feel like you can afford a second home, you’ve cleared the first hurdle.
Where should I buy?
You may dream of a bungalow in Fiji, but how often are you going to be able to get there? You may get more use out of your second home if you choose a location that is less glamorous but easier to get to. When you have a vacation home, you’re going to want to use it as much as possible. It will be a lot easier to do that when you can get there on weekends and holidays in addition to long vacations.
Other things to consider: are there the kinds of activities you like to do near where you’re thinking about buying? Do you like the weather? Will your friends and family enjoy this location, too?
Also, take a look at what the real estate market is like where you’re thinking about buying. If you decide that the second home life isn’t for you, how hard will it be to sell your vacation home?
If you’re satisfied that you’ve found the right location, you’re getting closer to being ready to buy.
Can I insure my second home?
After you’ve chosen a location, your next call should be to your homeowners insurance agent. You may find that insuring a second home will cost more than your current home. That’s because vacation homes are often located in places that are prone to natural disasters, or they may have amenities like pools that cost more to insure. If your insurance agent gives you a quote you can live with, you’re almost ready.
How do I find my second home?
This one is easy: call Loeffler Realty. We will talk to you about the research you’ve done so far, and we’ll work with you to find a vacation property you’ll be able to enjoy for years to come. Unlike most real estate companies, we have an attorney and an appraiser on staff. That means that we can make sure your second home is worth what you’re paying for it, and we can help you negotiate the best possible deal.
Summer is coming. Where are you going to spend yours? If this is the year that you buy a vacation home, call us today at (301) 882-8186 to get started.