If you’re thinking about purchasing a second home, we’ve got some items for you to consider!
When investing in a second home, there’s more than just the price tag to consider.
Depending on your current home insurance policy, you may need to purchase additional coverage. Since second homes are often unoccupied for much of the year, insurance companies classify them as higher risk. The location of the home will need to be factored in as well, such as being located near water (flood risk) or in an area that is prone to hurricanes.
If you are away from the property most of the time, consider having a management company check up on your place from time to time, checking for water leaks or any unauthorized entries. Likewise, if the property is an investment (and you plan on tenants occupying the home) you may want to hire a property management company to take care of the day-to-day. Managing property can be a full-time job, so factor it into your overall budget, whether accounting for your time or paying someone else.
Consult with a tax professional to find how current laws impact you. If you need a recommendation, let us know and we’d be happy to pass along some names. Factors such as whether you plan on the home being a true second home will impact what deductions you qualify for, including caps on how much mortgage interest you can deduct.
Finding a professional
You’ll need a qualified real estate agent who can help you find your second home. This is especially important if your search is outside the city you currently live in or simply in an area you are unfamiliar with. You’ll need someone you can trust to assist you in finding the right location (with your priorities ranging from necessary amenities to good schools), as well as handling business in a timely fashion while you are away in your home city.
When you work with the Nelson Riddle Team, you’re connected with our vast network of professionals. Through our affiliation with Cartus, we’re connected all throughout the world. We can help you find a qualified agent wherever your dream second home may be. Just ask us!
The Nelson Riddle Team
Whether you’re looking to purchase your first or fourth home, we’d be happy to help. You can reach us at 619-878-5244 or use our contact form.