In the eyes of many people, buying a second home is almost a distant dream. However, this practice is much more realistic than most realize and can have numerous practical benefits. Currently, with the help of modern technology and an experienced real estate agent, purchasing a second property has never been easier.
📋 Why Should I Buy a Second Home?
A second home can prove to have valuable utility in a multitude of cases. Specifically, some of the benefits of owning a second home include:
Vacation
When you’re looking for a temporary break for work, a “home away from home” can be a perfect place to relax in comfort. The price of properties in popular vacation areas is very likely to appreciate over a long-term period due to their intrinsic value. Not only can a vacation home be a great place to unwind for a while, it can also be a very worthwhile investment.
Rental
Additionally, an extra property can be rented out to offset the cost of mortgage payments. In fact, if you occupied the home for less than two weeks, you can completely deduct the house’s maintenance costs (lawn care or repairs for example) from your taxes. This can greatly reduce, or even negate, the price of owning a second home, making it very reasonable financially.
Investment
If your property is chosen correctly, it’s value can greatly increase over time. Due to the finite availability of in-demand areas simply from a geographic perspective, a well-chosen home will always have a value to it and will most likely see gains in the future.
👥 Finding a Real Estate Agent to Buy a Second House
Real estate agents are essential assistants in your search for the right second property. Real estate agents are professionals trained in aiding their clients find a second home that serves their exact needs. It is important to select an agent with established experience in your desired area, as this will save you time and ensure you are truly finding the best property. Many markets can be extremely localized, so trying to find a deal can be extremely difficult without the help of an agent.
💡 Things to Consider When Purchasing a Second Home
F
or people considering purchasing a second home, there are understandably several important questions they must ask.
What Happens to the Property When You Are Not There?
This can be a significant concern as it can determine how the property retains its value. Properties that are vacant for long periods of time are known to sometimes be targets of vandalism of burglary. Once again, it is important to select an experienced real estate agent to be confident in the long-term security of your property. If your property is in a safe area and has been rented out only to trusted tenants, this normally is not an issue.
What Kinds of Upkeep are Necessary?
Like any structure, homes subject to the elements will gradually decrease in condition. Because of this, it is important to spend at least some time every year at your second property to perform any necessary maintenance. This can be anything from lawn care to painting and repairs. If you are planning to live a long distance from your second home, this is something to consider.
💰 How Much Will it Cost to Own a Second Home?
While there are many advantages to owning a second property, there are also expectedly several costs and risks involved. First and most obviously, is the amount of money you will have to sacrifice upfront as well as over time. It is important to be in a fiscally stable situation before taking the risk of purchasing a second costly property. While this investment is likely to be a net positive in terms of money, people looking to purchase an alternative home must remember that, like every investment, making money is not a guarantee.
Ownership of a second home also comes with the added cost of insurance and mortgage payments which must be made over the long term. While the cost of these payments is usually offset eventually, do not buy a second property if you cannot make these payments successfully.
Your real estate agent is the best source of information about the local community and real estate topics. Call Tom Verhelst at 218-205-2604 | Karen Zell at 218-731-6836 to learn more about local areas, discuss selling a house, or tour available homes for sale.