Buying a Second Home

Buying a second home can be a big step. One of the most important things to have figured out is financing. You’ll want to understand the cost of purchasing and maintaining a second home whether you’re buying it as a vacation home, an investment, or a rental property.

In addition to your downpayment and closing costs, assess your expected monthly costs including the mortgage, maintenance, and property taxes. Make sure you can comfortably cover the costs associated with your primary home and this new second home before you commit. And of course, get pre-approved for your mortgage loan.

Think about cost of furnishing this home if it’s a vacation home for you and/or to rent to others short-term. Not only will the home need furniture, you’ll need to think about appliances, stocking your kitchen with necessities, and even details like cleaning products and lawn equipment. If you're renting the investment property long-term, the costs will be lower, but you'll need to provide appliances and other permanent fixtures.

And if it’s a rental property, consider costs of hiring a property manager to take care of the home and its tenants for you. It can cost you up to forty percent of your rental income for someone else to take care of the property for you. But over time, this property can represent a wealth-building tool for your family, and that cost can be worth it — especially if this property is in another state.

Please visit www.WynneMoore.com or call Wynne Moore for all your Real Estate inquiries.