Why would anybody need a guide in order to buy a second home? Buying a property is a set process and buying a second home is simply doing it twice, right? Well, while that might be technically true, it obscures a range of important financial and technical considerations which apply when an individual moves to purchase a second property.
Accordingly, second home buyers are a distinct buyer type and a distinct market. CityHome Collective, a real estate brokerage specializing in luxury homes(including second homes) andcondos (which are often purchased as second homes), advise that, just as targeting second home buyers is a distinct process when selling a property, buying a second home is a distinct process from buying a main residence. There are different things to consider, not least of which is the issue of mortgages. If you are looking to purchase a second home, then chances are you have already calculated that a double mortgage is affordable, or you’ve paid off your first. Nevertheless, this one factor – above all others – is that which makes the process distinct.But there are others too.
Location
Of course, purchasing a second home two or three blocks away from the first one is a pretty rare situation. Most people purchase a second home somewhere quite different from where they already live. And if you are looking to do so, the question might be “where”?
Naturally, that depends on what you want to do with your second home. There is a very good chance you’ll be looking for a holiday home or a getaway of some sort. While these can vary endlessly and will depend, above all, on what you’re after, you should be advised that you will be dealing with the holiday home market. This is quite a different industry from usual residential real estate, and so you should go with a real estate brokerage that specializes in these types of homes.
Property Type
As mentioned, a second home can be very diverse, but there are some which are far more commonly found on the market than others. Usually, a second home will be a smaller property than a person’s main residence, but it will be specialized towards whatever use it is to have.
Among-the most common type of second home properties is the condo. The reason for this is that condos are a property type specifically geared towards offering extra amenities beyond the living unit. In the case of condos specifically marketed at those looking for second homes, the shared amenities are typically things like swimming pools, sports facilities, or other leisure amenities. For those buying a second home for vacations, the condo is a popular choice.
Other Uses for a Second Home
Other uses for a second home include being an alternative residence. This could be for work purposes or just to spend part of the year in a different place – usually on account of climate. In such cases, property types are just as varied as primary residences, and there isn’t much to consider besides taking all the usual precautions and considering the expenses of having two homes.
A final reason why people purchase second is as an investment opportunity, usually to rent out to tenants either full time or for periods when the owner is absent. If you can afford it, this is an excellent way to generate some extra income.
In the end, there isn’t really one general rule of thumb for purchasing a second home.It is all about the type of home, why you are buying it and, overall, what you hope to get out of it.