Buying a second home (or vacation home) can be a very smart decision if you have the financial means to do so. However, owning multiple houses is also a huge financial commitment. You must make several important considerations if you want to successfully choose and purchase another home.
People commonly buy a second home as a rental property, an investment to sell later, or a vacation home. When buying a second home it is important to know what you will use it for because the home's purpose will influence the place that your new home is located. For example, if you are buying property to be used as a vacation home, you will want to choose a property in an enjoyable location. On the other hand, if you want to choose an investment property, you should choose one that is in an up-and-coming neighborhood.
When you buy a second home you are subject to several different kinds of taxes. Nolo reports that people buying a second home will not only have to pay property taxes, they also have to pay income tax. Be sure to consider the local taxes in the place that you are buying a home so that you are prepared to deal with these costs.
Owning property that you do not live in full-time means that you have to invest in keeping your home safe from harm and damage. You should decide as soon as possible what kind of protection you want to get for your home. Getting a home alarm system, regular home inspections, and hazard insurance are all important parts of keeping your home safe from both burglary and damage from the forces of nature.
Thinking about these three concerns when buying a home is very important. There are plenty of other factors to consider depending on where you are buying a second home and how far along in the process you are. If you have any questions about buying a second home, contact the real estate specialists at Old Dominion Realty to get them answered.