Do you have a favorite place you vacation to every year? Possibly multiple times in a year? Do you rent the same place every year? If you can answer yes to these questions, buying a second home may be an option.
Benefits to buying a 2nd Home
Buying a 2nd home can bring you lots of benefits including, but not limited to:
- Provide savings. Buying may result in a smaller monthly payment than rent.
- Provide an option to lessen the preparation, as it gives you a home base – fully stocked and ready for enjoyment.
- Provide more travel options, eliminating the possible limitations of the property already being booked by other travelers.
- Allows options to rent the home to others when you are not there.
Things to Consider when buying a 2nd home
If you own your current place of residence, consider the added debt of owning another home. You’ll be making payments year-round instead of just during vacation. You need to be able to pay for both residences at your current income levels along with your current debt load. The allowable debt load is given close consideration and you must be able to prove you have the capability and the capacity to pay your current debts along with the new, and still have some cash reserves. Owning another property means another property to maintain. Consider how to accomplish possible repairs? Would you need to hire a caretaker, or would you be able to care for the property due to traveling there regularly? Consider if selling the property in the future would be difficult, or possibly be at a loss?
Stop into your local bank to obtain advice when you are considering purchasing a second home. A loan officer can help you navigate through the options --pros and cons, as each state has different guidelines.
Single Family Lending Manager