TOP 3 Questions To Ask Before Purchasing A 2nd Home

Dated: 07/08/2019

Views: 279

Top 3 Questions to Ask Before Purchasing a 2nd home

1. How Much Will a 2nd Home Cost?

Besides sales price, you should factor in mortgage, property taxes, insurance, utilities and maintenance feels. Plus 1.2 percent of the purchase price to cover annual maintenance and unexpected repairs.

It’s also smart to budget 20% more for insurance than you pay for your primary residence. If you rent out your 2nd home you will need medical and liability coverage.

Remember tax rules can be different according to whether your second home is for personal use or if you rent it. You will also want to make sure the HOA & county allows short-term rentals if this is what you plan to do with the home.

2. Are you buying for the right reasons?

Some people view a vacation home as a way to save on lodging fees they pay on their annual trip. You can take pretty swanky vacations for what you will spend on a vacation home.

It might be helpful to view you 2nd home as an investment. Research median home prices over the last 10 years to see how a property has performed historically.

3. If you rent the home is it the right property?

First you want to consider how long you’ll want to rent the property? 1 year at a time would be considered long term or weekly would be considered a short term rental. Once you determine this calculate how much you could make per year. Is it enough to cover the mortgage, taxes, insurance, maintenance, management & marketing the property?

Find out how active the rental market is where you are looking to buy. Will there be potential renters? How often are the other properties rented out? Make sure you will stand out.

Still considering purchasing a 2nd home? Let's chat! I can help no matter where you 2nd home will be.

Kat West

Preferred Real Estate Brokers

321-277-1999 (Call or Text)

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Kat West

Why Hire Kat West as Your Realtor® I’m a 2nd generation real estate professional. Both my parents have been in the business my entire life buying, selling and leasing real estate properties. The....

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