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.