Business & Merchant

Last Updated on Thursday, 28 September 2017 17:35

By Roger Dolanch, Broker/Owner

Have you ever thought about how nice it would be to own a second home, such as a vacation home or even a retirement property? With that dream comes the quick realization that a second home is a luxury that not everyone can afford. There are a few things to consider as you decide if a second home is right for you.

Know What You’re Getting Into

Acquiring a second home requires a major commitment because the search, purchase and upkeep of a second home can be time-consuming tasks. Over that period of time, you could conceivably experience a change in fortune or circumstance. If that is the case, you should not pursue a second home until your situation stabilizes.

If you are unfamiliar with the area in which you are looking for a second home, sometimes a long-term rental can be a viable option to familiarize yourself with the area. This will enable you to see if the benefits you were seeking from the area are all that they seemed cracked up to be.

Financing

Just as you went through a process of deciding how much home you could afford with your first real estate purchase, you must go through that process for your vacation or retirement property purchase again. As always, your past financial record and employment situation play into the kind of financing you can obtain, influencing your purchase power and therefore defining what types of properties you will have to choose from.

For retirement homes, keep in mind that your retirement could be years in the future and the area may change in that time. So too could the attractiveness of your financing options. The benefit of securing your retirement home should be weighed against the pressure to lock in a financing interest rate and program.

One option for deferring some of the cost of a retirement property is offering the real estate as a rental property so that the income can offset the tax and financing fees of the property. Many people use this avenue as a way to secure their eventual new home while building equity and enjoying a revenue stream at the same time.

Research Online

Financing benefits and pitfalls aside, using the Internet is a great way to get a feel for the area you are looking at. The vast majority of home buyers do at least some research online for possible real estate purchases. For those looking at a long distance move, this can be an extremely valuable tool for previewing a wide variety of homes in a short time and from a great distance.

It is expensive to fly to and it can be exhausting to see as many houses as possible during a brief stay. Any fruitless trips may discourage you. The Internet can take the “edge” off the process and ensure that you see real estate properties that are possible candidates for consideration.

To have a high degree of confidence in securing the services of a reputable REALTOR® in your area of interest, please reach out to any one of our CENTURY 21 Frontier Realty offices. We can put you in touch with highly rated, service oriented, successful REALTORS® practically anywhere, Our Relocation Department will help monitor your satisfaction with the agent you are connected with. In short, we will have your back. No one ever said the wonderful benefit of owning a second home came easy, but it can be very rewarding!