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.