Is there a spot that you visit so often you’d like to purchase property? Or are you thinking of buying a vacation home that you will rent out when you’re not staying there? Whatever your motivation, there are a few considerations to make when you’re purchasing a second property.
Be Realistic About its Use
Does your dream of second-home ownership match the reality of the time and investment you’ll make? If the second property is primarily for your vacation use, factor in the costs of traveling to the location and how often you’ll be able to take advantage of it.
Think About Maintenance
Who will take care of issues with your second home when you’re away? If it’s a rental property, you might want to hire a property management company, so be sure to add those costs to your second-home budget.
Visit More Often Before You Buy
If you only visit the beach every year from Memorial Day to Labor Day, do you have a good sense for what your second-home city is like during slower months? Make sure you visit the location throughout the year and get to know everything from the weather to local activities. If you are purchasing property with the intention of renting it out, be sure you know the seasons travelers are more likely to come and that you won’t be missing out on key moneymaking times when you plan to stay there.
Talk to a Local REALTOR®
Find a REALTOR® who serves the community in which you’re searching for property. Local REALTORS® have knowledge about the area, local property values, market trends, and more. They can also connect you with professionals who know specifics about local taxes or restrictions related to rental properties. You can filter the results based on people who specialize in vacation and second-home properties or who hold the Resort and Second-Home Property Specialist (RSPS) designation.
Talking to a realtor is a great help when it comes to buying an investment property. A lot of things to consider and a piece of advice from an expert is best. Make sure that all the processes are legal to avoid issues in the future and you can fully protect your property.