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Considering buying a second home? Make sure you are aware of all pros and cons of investing in a second real estate asset when you already have one! Click for best investment advice: http://goo.gl/S009Tg
Owning a second home is a dream for many and a reality for a relative few. It's easy to imagine yourself enjoying
vacations whenever you want, retiring to a place you love or even generating income as a landlord. There are
plenty of reasons why buying a second home is a good idea. But there are also some considerations that should
make you think carefully before you make your move.
Decide Whether Buying Is Right For You
1) Do some market research
Get in touch with a property agent and take
leads on the latest price trends of the
2) Understand intent of buying
Be clear on whether you want to buy a second
home for living or for earning rents. The most
expensive houses may not get you good rental
3) Make a list of possible expenses
Property management services
4) Understand tax implications
Consult a tax advisor to get accurate, up-to-
date information about tax write-offs, loans,
interest rates, etc.
Taking The First Right Steps
1) Find a second home in the area where you
may wish to reside.
2) Get insights about the place that can
increase the value of your potential home:
- Proximity to good schools
- Reliable and extensive transportation options
- Shopping options
- Proximity to hospitals, police station and fire
3) Get familiar with the responsibilities of landlord.
- Know how to evict a tenant or terminate a lease.
- Learn your state's laws about security deposits.
- Know how to structure the rental application and tenant
- Know your duties when it comes to regular repair and
- Protect yourself from liability when it comes to tenant injury.
- Know the list of tenant's rights, especially concerning
4) Hire a property agent to help you narrow down your
housing search until you've weeded out all but the best
Finalizing The Deal
1) Secure home loan
Make sure the Total EMI (Including the 1st
Loan) is not over 36% of the monthly income
One should be prepared to pay 20% of the
housing cost as down-payment,
2) Make an offer
Make an offer on a second house that you like.
Expect to make several offers that are
ultimately outbid before you land one.
3) Safeguard your newest asset
- Get a home inspection prior to purchasing to be aware of any problem that has not been disclosed
- Get title insurance.
- Get hazard insurance (earthquake, flood, fire, etc.)
GET IN TOUCH WITH THE EXPERTS