Buying a Second Home vs Buying Your Primary Residence
The experience of buying your second home vs buying your primary residence can be very different. When buying a second home, your needs are likely much different than they were when buying your first residence.
As such, there are several things to consider before deciding to buy your second home. It’s important to prepare yourself before jumping into this process in order to ensure you find the perfect property to act as your second home.
Before starting the search for your second home, consider these factors to make sure you are as prepared as you can be.
Why Are You Buying a Second Home?
First and foremost, seriously consider the reason why you are buying a second home.
When you purchased your primary residence, you were likely concerned with factors such as neighborhood amenities, nearby schools, nightlife, etc. However, if your second home is meant to be a vacation home, you might be more concerned with things like weather, distance to the beach, and similar factors.
In order to find the property that’s right for you, you need to seriously consider your wants and needs before starting your search.
Getting a Mortgage
Getting a mortgage for your second home can be much more difficult than it was to get your mortgage for your primary residence.
The primary difficulty is proving to lenders that you can afford a second mortgage. Since you already have an active mortgage, lenders are taking on more risk.
Additionally, your lender might require you to buy a property that is a certain distance away from your primary residence in order to ensure that it is used as a vacation home and not your primary residence.
Do You Plan on Renting Out Your Second Home?
Renting out your home can be a profitable decision, but it does come with disadvantages.
For example, if your second home is far away from your primary residence, it may be difficult to manage the home and tenants on your own. Instead, you might have to hire a property manager, which will increase your expenses.
Additionally, if you plan on using the home at all, having an active tenant could prevent you from visiting your second home when you want.
If you are interested in renting out your second home, you should be sure to consider the advantages and disadvantages before doing so.
Just like with your primary residence, you will have to perform maintenance on your second home to preserve its value and keep it in good shape.
Since you won’t be living in your second home, you may need to hire a professional to maintain your second home while you are away.
Finding the Right Location
Lastly, you need to seriously consider the location of your second home. This may seem obvious, but the importance of picking the right location can’t be emphasized enough.
For example, if your second home is too far away, you may not find the time or money to visit it as often as you expected to. Too close and there might not be any reason at all to visit your second home on a regular basis.
Moreover, if you’re buying in an unfamiliar location, it can be more difficult to assess the value of properties in the area.
Buying a second home is a very different process than buying your primary residence. By considering these factors, you can find the perfect second home for you and your family.