Lots of people are considering what it takes to own a second home – a cabin in the woods, a condo on the beach. Whatever your second home looks like, it’s a huge investment akin to buying your primary residential home! How do you know if it’s time to look into buying that vacation hideout?
You know what it takes to keep up with your current home – can you do it with a second? According to Zillow.com, things to consider when calculating costs are insurance, property taxes, water, electric, gas, and trash removal bills, along with a mortgage. You might also consider hiring a property manager if you intend to stay away from your second home for more than a few weeks.
Location, location, location
Buying a home in a faraway land may be nice in theory, but you should also calculate the cost of traveling to and enjoying your second home and ask yourself – is it worth it? Zillow advises if you already spend a significant amount of time where you plan to purchase a vacation home, then you may be on to something.
Once you’ve collected a decent amount of information, running it all by your insurance agent is a good idea.
Once you’ve completed steps one through three, contact an SMC mortgage banker and find your home-away-from-home. Depending on your plans for your new property and whether or not it involves renting it out, there could be some tax benefits involved. Not to mention, it’s not the perfect getaway for you and your family, that you don’t have to make a reservation with and is yours to do with as you please!Source: http://www.zillow.com/blog/4-steps-to-buying-a-second-home-194367/