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!