The choice to buy a second home brings you an opportunity to see and live in other areas, whether you live there or simply visit on occasion. Here are some ideas to consider when you are thinking about and planning to buy a second home.
Hire a Realtor
One of the most important parts of buying a second home, or any home for that matter, is to arrange to buy it with the help of a real estate professional. When you use a real estate professional, they will help you research an area and find out what neighborhoods may be better for your needs than others. A realtor will be an expert on properties in the area and the pricing, but can also help you in the contract negotiations. So, for example, if you want to make an offer to buy a home with all its furnishings included in the deal, they can write up the contract with a fair price offer.
Consider Your Usage
When the opportunity of buying a second home, you will also have a second place to stay in a second location and you will also have a second set of expenses. For this reason, it is a good idea to think about your budget and if you will need to or want to use the second home as a vacation rental and income property. A second home can provide you with an income potential that will help offset and even cover your property's expenses. And as a rental property you would be able to write off a great deal of the property's expenses; however, always consult with your tax adviser about compiling all your property expense deductions when you file your taxes.
With a second home, you could put the home up for rent when you are not using it as a residence. A local property management company can handle all the contracts, advertising, cleaning, leasing, and management of the property's maintenance. This can help you maintain the property even if you spend a majority of your time in your main home, especially if it is a distance away. And if you want to manage the property on your own as a rental, you can list it on owner rental websites, such as VRBO and Airbnb, which allows you to pick and choose which days you want to block out as a rental and use the home for your own purposes.
As another option, if you want to buy a second home as a vacation home that you would use only a portion of the time, look into buying it with a friend or relative. This type of shared purchase will let you have your own shared vacation home and you can contract each other specific dates, weekends, or long-term use in which you can each use the property for an equal amount of time through the year. Be sure you have a shared ownership contract written up with an attorney so all the details and arrangements are written out clearly and make sure your ownership rights are detailed as well.
To learn more about second homes for sale, talk to a real estate agent.