Is Buying A Second Home A Good Investment | Experts Guidelines For Buying Second Home

Not long ago, I found myself considering buying a second home for investment purposes, but I had a lot of questions about the process and not many answers. I went online to my favorite website, Real-estate-yogi.com, to find out more about taking this action, and, as usual, I learned a lot! Here is just a sample of what I discovered.

As I was asking myself “Is buying a second home a good investment?” it occurred to me that perhaps buying a 2^nd home and buying one for investment purposes were different things. Sure enough, when I checked it out on Real-estate-yogi.com, it turns out that they are separate things. An investment property is one that is not your primary residence and is purchased with the goal of earning income from it. There are a few types of investment property: residential rental property, commercial property, and property bought to “flip” – that is, to re-sell for a profit. These are the kinds of things you need an investment property loan for. A second home is one in which you live at least part of the year, aside from your primary residence. To purchase one of these, you need a second-home loan.

I next wanted to know about some pros and cons of buying a second home. Would it be worth it to me at tax time, for example, to pay taxes on the property itself and any income I accrued from renting it out?  Again, I turned to Real-estate-yogi.com for answers. An advantage to having a second house is long-term profits from it. Tax-wise, as long as I don’t charge rent for more than 2 weeks each year, I can deduct the interest on my mortgage and the property taxes from my gross income, just as I can with my first mortgage and taxes. Pretty cool, huh?  A disadvantage is high initial purchase fees. In areas that are very popular for second or vacation homes, it is just more expensive to own property, whether for renting out or residing in.

Did you know that www.real-estate-yogi.com is a free consumer resource website? It has all sorts of information on any number of realty topics, including buying a second home advice, such as what the steps are to buying your second home, beginning with choosing the location in which you wish to live part time and selecting a price range to work within. The website is available all day, every day, and there is always knowledgeable staff on hand to answer phone calls and help you work through your concerns. If you’d like to access the information in the Real-estate-yogi.com database, just dial 1-800-987-1397 for a no-cost initial consultation.

How To Buy A Second Home And Foreclose On The First: Buying Your Second Home Tips

Should you buy a second home and foreclose on the first? This can be a risky venture unless you handle the purchase of the new property first and know there is no chance the lender can foreclose on the new property because you walked away from the first one.

Qualifying to Buy a Second Home

When I bought my second home I wasn't sure what to expect. Most of my friends told me buying your second home was easier than buying the first, but I needed reassurance. I found out about a great website: Real-Estate-Yogi.com. Some of the things I found out when I visited the website included:

• Where to obtain the best interest rates
• Deciding what type of mortgage was best for my needs (fixed rate, adjustable rate, VA, FHA, etc.)
• Qualifying for the purchase of a second home (the information included investments, vacation homes and replacement homes)
• Making the decision about buying a second home as a replacement home or vacation home

While the website had a great deal of information, I still had some questions. I found a contact information form on the website. Once I filled it out it was only a matter of minutes before I received a telephone call from one of the Real-Estate-Yogi experts.

Replacement or Vacation Home?

If you’re thinking of buying a second home for vacation purposes, it’s important to make sure you have the income to support two mortgages. It’s one thing to say you’re going to buy a vacation home, but it’s quite another to qualify to do it. Long before I bought my second home I was talking to a friend about buying a vacation home, and she said even with their two incomes they didn't qualify for a second home mortgage. She was so disappointed.

Advice You Can Use for a Second Home Purchase

Are you interested in buying a second home? Advice is available on the Real Estate Yogi website that will help you tremendously. No matter how many times you may have made home purchases, it’s always helpful to obtain advice from the experts.

Those who are interested in buying a second home will find some great advice by visiting www.real-estate-yogi.com. If you still have questions, take a few minutes to pick up your phone and call 1-800-987-1397 to arrange a free consultation.

Making A Sound Investment In A Second Home

Just because you’ve successfully owned a home and paid a mortgage for a few years doesn’t mean you should start looking to own a second home. Is buying a home a good investment? Before you get ahead of yourself you should get to know how it could all fit into your life. Remember that buying a second home for investment reasons is more difficult than securing your first home. Lenders consider owning more than one home a bigger risk and are more reluctant to hand out mortgages to anyone who would like to own a vacation or investment spot somewhere. Lets look at some of the reasons people buying second home, what they do to acquire them, and whether or not this is feasible to your life.

• Second homes are a growing trend right now because the housing market is recovering and is looking stronger now. Due to the housing crisis several years ago, there are still many bargains out there.
• Mortgage interest rates are about as good as they will ever get. They are not expected to increase dramatically any time soon either.
• Buying a second home however is still a huge investment. There are ways to make this investment profitable, and also less risky, but you shouldn’t buy a second home without a sound financial plan going forward.
• Perhaps the biggest concern will be mortgage interest deduction and if it will fall victim in some way to tax reforms being made in Congress right now. For the life of your loan there is a good chance that your mortgage will be affected by what happens in Congress over the coming months.

Location, Location, Location

Where do you plan to look for homes, and why are you looking there? Remember that the housing market is different everywhere in the country. Just because your particular state is feeling strong in property values doesn’t mean that the state where you decide to purchase a second home will have the same economic strength. The smart thing to do is to take a week or weekend and visit the neighborhood the house is located in. Get to know the streets a little. Is it safe? Is there easy access to entertainment, hospitals, employment, and schools?

Getting Professionals Involved

Because the industry tends to be very localized it is best to find a real estate agent who is local to the area you are looking. The person who helped you find the home you are currently living in probably won’t be of good help to you now. It is also sensible to take your time. Don’t rush into anything unless you are absolutely sure it is the right choice. People who have been watching the market believe that there will be a steady growth rate and rebound from the last housing crash, and prices are not going to run away from you.

The first place to start aggressively seeking information on the best ways to buy a second home is to go online and visit www.real-estate-yogi.com. They have experts available 24 hours a day to help you with all of your questions. Call them for a free consultation at 1-800-987-1397.

Buying A Second Home And Renting Out The First: Get Buying A Second Home Advice From Experts

Have you ever dreamed of buying a second home and renting out the first? It seems that we can, and we’re excited. The thrill of finding a new home while earning money from our first one is amazing! However, I have questions about the whole process, so I went to my go-to website for this sort of thing, Real-estate-yogi.com, to get answers. As always, I was able to find what I needed right away. Here is just a little of what I learned.

If we’re going to be buying a second home renting the first, there are tax consequences to take into consideration if we make a profit on the rental. Real-estate-yogi.com notes that if we end up taking a loss on the rental property, we can write it off at tax time, as well as writing off any repairs we’ve had done to the first house. Of course, we could just hire a property management company so we don’t have to deal with the repairs ourselves and we’ll have a better chance of getting decent renters. I know that there are families out there who’d love to get into our first home; I just want to be assured that they’re good people who won’t ruin our things or the house itself. Now that I think about it, a management company sounds like a great idea!

It will be much easier for us to take out a second mortgage if we have a signed rental agreement prior to buying second home renting first. The bank will see that we’ll be able to afford both mortgages because the rental income will pay for the first one and we have really good credit, meaning that we’ll qualify for a great 2^nd mortgage. Real-estate-yogi.com suggested working with the Federal Housing Authority (FHA), but they no longer count rental income when someone applies for a loan. This means that we’d have to qualify for both mortgages on our own, which we can do. Also, our debt-to-income ratio cannot be more than 41%, which will include both mortgages. Hmmm… That’s something to consider before applying with an FHA-approved lender.

I’ve decided that the process of buying and selling homes at the same time is fun, and I think I’ll become a realtor just to help folks do it. I know I have the best partner already www.Real-estate-yogi.com – to guide me along. If you have property financing questions and need some quick, accurate answers, give the well-trained staff there a call at 800-987-1397 for a free preliminary consultation. There’s always someone available to talk with you, so give them a jingle. You’ll be glad you did.

Is Buying a Second Home Right for You?

You've successfully owned a house for a number of years now, made your mortgage payments on time and experienced a gradual rise in income. It's possible you've come to a point in your life where you might be toying with the idea of owning a second home. There are many reasons people decide to buy a second home, but the most common are:

• A rental property to help boost finances and boost cash flow each month.
• A vacation home for a fun getaway.
• A home for your retirement years. You can lock your future retirement home payments into today's prices.
• A home for a family member which poses as an investment building to rent out till your heir comes of age.

Is buying a second home a good investment? The answer depends most critically on your current and future income levels. The biggest advantage right now is the soft real estate market nationwide. You can get great bargains all across the board. Many homes which were out of your reach a few years ago are now very affordable. However owning a second home is still a huge financial commitment. It would be foolish if you did not consider the risks alongside the advantages.

Location

Location is very important when considering a second home purchase. In real estate location is everything. You aren't going to buy property knowing that its value will decline over time. If you are not selective and thorough in your choice, than this can certainly happen. To increase the likelihood of a higher resale value look for property in popular areas near beaches, waterfronts and mountains.

Mortgages

Cost is also going to be a major consideration. Mortgage interest rates for a second home purchase will be at least a half to a whole percent higher than the rates for your primary residence. Home owner's insurance can be a lot higher as well, especially if you purchase land in an area with frequent severe weather like hurricanes, flooding, or forest fires. Many other financial decisions need to be thoughtfully discussed before making a purchase. These will mainly revolve around the overall principal and mortgage interest rates, but also the potential taxes and insurance costs associated with your location.

Taxes

Tax laws concerning second homes can be very complicated. You should seek professional advice concerning potential taxes because you will want to look for a property that reaps the biggest possibly tax benefits from your investment. The basics include the capital gains exemption. You are allowed a substantial amount in capital gains when you sell a primary residence, however, that does not apply to a vacation home. In order to get a tax break that second home would have to be a primary residence for at least two years. If you rent your second home more than two weeks out of the year you have to pay taxes on that income as well. So if you rent your property out you can't write it off in your taxes.

Learn the best methods for locating and buying a second home mortgage at www.real-estate-yogi.com. They have agents available around the clock, seven days a week ready to help you in your area of the country. Call them for a free consultation at 1-866-987-1397.

Buying A Second Home: A Good Time For Second Home Purchase

You've owned a home for a number of years now. Maybe your career has taken off or you've come upon some good fortune and good money. Making a sound investment is probably on your mind. Some might say to invest in the stock market, while others could tell you to put that money into a retirement plan. Is buying a second home a good investment? Despite the recent distress of the real estate market you don’t want to overlook a second home purchase. If you are smart with a real estate investment it can pay huge dividends down the road.

• Look for an area of your state or country where the property values have been steady if not growing.
• Find a real estate agent local to the area in which you are looking to buy property. They will have the inside information on where to find the best investments.
• Consider what you want this property for? Is it going to be a vacation home? Will it be a rental property? Maybe you are looking to flip it in a few years and consider it an investment.

Is it the right time?

Before you even think about buying a second home remember the financial burden it will have on your bank account. Just because you can afford a second home doesn’t always mean you should. Remember that you will be making payments on two properties now. Still, owning a second home is common in today’s market and many people have to own another home out of necessity because their job or family requires it.

Use the internet

The internet is a great resource to find information on the housing market. We are fortunate to live in a time of instant information. By using a search engine such as Google  yahoo, or bing.com you can instantly find the latest property values local to that area of the country. If you dig a little deeper you can get a list of real estate agencies attached to those properties. You can even get a history of that properties value over time. This will help provide you with a scouting report of the area’s potential value in the future.

Go visit the area first

Visit the area first before making any purchase. Stay for the weekend, or week and scope out the lay of the land. Is it a safe neighborhood? How are the schools? Is there access to hospitals, shopping, and entertainment? What’s its location in relation to potential employment? One of the best ways to buy a second home is to personally interview the property. If you can bring someone who knows something about home repair this can help. Look over the home in the best detail you can and make sure there aren’t any red flags like a collapsing deck or some other costly repair that will add to the overall costs of the home in the future. Also look for the potential to make this home more valuable in the future. Is there room to add a pool or even a deck? Can more rooms be added? If it is an investment property you need to consider how you will invest in it in the future.

Whether you are buying a second home as a primary residence, or as some sort of investment, begin your research at www.real-estate-yogi.com. They have agents available any day of the week to advise you on your next investment. Call them directly at 1-800-987-1397.

Buying Homes in Today’s Market!

Have you finally built up enough savings to start considering buying a second home? Well you might have some competition out there. Around %33 of all homes sold these days are bought by people who already own a home. Most often people buy a second home as a get away spot, but many people look at a second home as a long term investment or perhaps an eventual retirement home. Some people simply want to take advantage of a great deal. Right now you can find incredible deals all over the country if you simply do your research. The steps to buying your first home still apply, but here are some tips on how and why buying a second home as a primary residence.

• Avoid an impulsive decision to buy a home just because you fell in love with it at first sight. Do your research and be thorough.
• What is the area like around this possible second home? Go back and spend a few nights in the town and do a little exploring. Is it a safe neighborhood?
• Work with a local real estate agent. Don’t use the one from your home town. Contact an agent in the area you intend to move.

Remember that the market changes constantly for property. You just never know for sure what the future could be, so this needs to be a thoughtful decision. Don’t jump at the first offer, let things unfold a little bit. Although you could potentially lose out to an aggressive buyer by being passive, you will lose a lot more by making a poor financial decision.

Consider this, Consider that

When you start adding up the costs include insurance fees and maintenance. Some of the most desirable places to live are also the most at risk for things like inclement weather, floods and fires. Also consider what you want to do with the house once you buy it. Are you going to use it regularly? Are you going to work on it and add improvements to up the value? Maybe you are buying a second home to rent? If you are intending to become a landlord remind yourself of the responsibility. Make sure you know the landlord and tenant laws under the Fait Housing Act before you go and rent out a home.

Go online and start asking questions. A great place to start is www.real-estate-yogi.com. They have answers for many issues relating to real estate ventures and are happy to help. If you are just getting into home ownership they know how to help with buying your first home as well as a second. Call them toll free at 1-800-987-1397 for a consultation.

Buying a Second Home, Is it the Right Time?

A third of all homes sold these days are considered vacation homes or investment properties. A demand for second homes is healthy even during a weak housing market. Currently home buyers are enjoying an advantage and it could be a great time to buy a second home. However, the potential buyer must be smart about their investment.
Here are some great tips to help a buyer find the right house.

• Resist an impulse buy and evaluate how a buying a second home and possible mortgage will fit your long term goals. Maybe you saw a house for sale while on vacation and came home with the keys, but you could now be stuck with a house you won't be able to afford down the road.

• Research the area you are considering. Go there and spend a few nights scoping out the scene. Is this place a safe investment? Are property values steady, dropping or on the rise? Based on your vision whether it is a retirement home, or a vacation home you will want to know where you are putting your money.

• ​Don't ask your local real estate agent from PA about real estate in FL. You will want to seek out a real estate agent familiar with that area of the country. Remember residential real estate is a very localized business.

• Shop around for a mortgage for second home purchase and consider the extra costs associated. Because the market is changing constantly you are going to want to resist jumping onto the first offer. See what else is available first to get the best deal. Remember to include insurance fees and maintenance when adding up those costs. For whatever reasons some of the most desirable places to live are at a high risk for hurricanes, floods and fires.

What would be right for you?

Think about what type of home would be right for you. If it is a vacation home would you consider buying a second home to rent out when you are not there? How much time are you willing to devote to maintenance? Condos are a good choice for people who will only use the home occasionally and don't want to deal with maintenance, but this comes at a sacrifice towards privacy.

What are the possibilities?

You might even consider sharing the costs associated with owning a vacation home with friends. When you pool resources together many people can enjoy a vacation home throughout the year for a fraction of the cost. If you intend to rent the home being a landlord has a lot of responsibility. Get to know the landlord/tenant laws as well as the Fair Housing Act before you rent out your home.

Whatever you envision for your second home just remember it is another huge investment that will require your continual presence and attention. Although buying a second home with no money down might seem like a dream come true, you may want to know the area where this house resides. Why are they offering such a good deal? Is something wrong with the house that I don't know about? Be thorough.

For the best real estate help available online, visit www.real-estate-yogi.com. If you would like to speak with someone directly you can call 1-800-987-1397 and they can advise on real estate anywhere in the country!

Looking for Help Buying a First or Second Home

I've been through the battle before. It wasn't really a battle, more of a struggle. However, I learned a lot when I first learned how to buy a home. I've heard the process is supposed to get easier now that I've done it before. So far I've found that to be true, however my real estate adviser has told me time and time again that it still requires special attention.

Because I've owned a home already, I've built up some equity, as well as my credit score. Buying A Second Home should be a piece of cake... right? When I first went to my accountant with this idea he had some reasonable questions.

• Do I plan on selling my current residence? If I plan on keeping both homes will I be able to afford the expenses associated?
• Is it possible to transfer an existing mortgage onto another home. What are the brokerage fees if you cancel your existing mortgage. What are the options for mortgages when buying a second home?
• When purchasing a second home what are the chances of approval? How will my credit score or other financial issues affect a new purchase?
• How will equity be associated towards buying a new home?

I obviously had to spend some time thinking about this. A second home is quite the investment, and would it just turn out to be a money drain? Maybe I should consider Buying A Second Home For Investment? My accountant also stated that getting a loan to buy a second home has much stricter guidelines as the risk to the lender is viewed as more threatening. Sometimes however lending companies look more favorably if this second home is intended as a vacation home rather than an investment property. It is easier to qualify for a vacation home than it is for an investment, the policies on down payments are more relaxed, and the interest rates are usually more competitive.

When I started to shop around I realized that the down payment required on a second home was going to be higher than the one I would use on a primary residence. The bank often asked for anywhere between 20-35% of the total purchase price. That's a lot of money up front. Most lenders also required a great credit score.

My account found a website called www.real-estate-yogi.com and told me I should ask for their opinions. I called their toll free number 1-800-987-1397 and spoke with an agent directly for quite some time. We worked out what it would probably cost me financially. We discussed where the best place to buy a home would be, and this included states with lower land taxes. Lastly we discussed the long term financial implications and how it will turn out as an investment.

There are some similarities here that applied to the steps to buying a first home, but in some ways it felt like there was even more risk involved. When I found help with buying my first home all I had to worry about was how I'd come up with the money upfront, and how I'd be able to pay the mortgage month to month. This is clearly something I'll need to think about, but I couldn't have started the process without real-estate-yogi.com.