Deciding to buy a second home is a serious financial decision and not an emotional choice. Before you jump into the pool here are a few things to consider that may help guide you.
1. Determine why you want to buy that 2nd home.
Here are a few reasons why others have purchased a second home:
- vacation destination
- income investment
- place to move when you retire
- rent to others short-term
- fix & flip
2. Count the cost of owning a second home.
- Consult with your financial advisor or CPA to understand the benefits and/or liabilities of owning a second home.
- Identify the source of funding for the purchase.
- Set aside needed funds for repairs, closing costs, property tax and insurance.
3. Make the offer.
- Everything in real estate is negotiable, so make an offer.
- Make the negotiations a win/win situation for both you and the seller.
- Understand you may need to "walk away" and find another property.
Take Away: There are several reasons for owning a second home. Decide what yours is and develop a plan to make ownership a reality.
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