Having a second home is a dream for many people, and it can be a great purchase to make. After all, think of all the different freedoms it offers. It can be a weekend escape, or a rental property. It can be a place to start retirement, or something to pass on to your kids.
On the other hand, don’t forget there are some downsides to buying a second home. You’ll have to pay more property taxes, and it requires a significant financial obligation.
There are a lot of pros and cons for buying a second home, so make sure you consider them before signing the papers. If you make the purchase at the right time in your life, it could be one of the best decisions you’ll ever make!
Why It’s a Good Idea to Buy a Second Home
There are a ton of reasons why buying a second home is a good idea. It can act as your own personal vacation spot, and you can spend weekends, summers, or any other available times there without worrying someone else will reserve it. Also, if you know in advance when you will want to be there, you can rent it out the rest of the time. Or, it can be an Investment by buying it now in a desirable area, and then selling it when the value goes up. It can even be the first step on a gradual move to retirement, or just a fun project to spend your weekends working on.
When Is a Good Time?
There is no universal “perfect time” to buy a second home, and it really depends on a whole number of factors. For example, you need to make sure it fits into your financial situation without much risk of becoming a burden. However, if you think about all the things mentioned in this article, you’ll be much closer to knowing whether or not the time is right for you.
Make Sure It Matches Your Plan
Before deciding about buying a second home, you should think about what your short and long term goals are. Does a second home fit into these? If so, where should it be? How much can you spend? Who will maintain it? Knowing the answers to all these questions will help you avoid any buyer’s remorse, and you’ll instead make an informed decision.
Talk to Your Financial Planner
You shouldn’t make a major decision like this without consulting with someone who plans your finances. And, if you have enough money to buy a second home, you have enough money for a financial planner. A second home is always an investment in one way or another, but make sure that you have an expert work through it as it applies to your specific situation. Simply getting advice from friends may not be a good idea, because they could be in a completely different set of circumstances.
Use Local Assistance
You should get a real estate agent to help you make the purchase, and you should find someone local to the area where you will be buying. They’ll be able to help you watch out for things that outsiders don’t know about, and they may have local connections that will give you an extra advantage.
Issues to Be Aware Of
When you’re buying a second home, make sure to consider the whole financial aspect – not just the sale price. Think about what you’ll be spending on mortgage payments, insurance costs, taxes, maintenance, and any other fees related to your situation. Also, bear in mind that these can all be different than the costs of your first residence. For example, property taxes are different everywhere, and insurance is often about 20% more for vacation homes.
Also, if you’re planning on the house being an investment, or at least a safe bet on which to place your money, don’t forget that the property market can fluctuate. Prices are currently going up, but there’s always the chance that could change. Again, this is something your financial planner should be discussing with you.
Extra Considerations for Rental Homes
Buying a weekend or vacation house for your family is a lot more straightforward than a rental house. You’ll be taking care of it, so there won’t be as much damage and maintenance costs will be less. Also, do you have the time to handle the renters? Whether it’s for short-term or long-term stays can make a difference of how much time it will require, but either case could be challenging enough to hire a property manager. It’s not fun if it becomes overwhelming.
Do Your Research
Buying a second home is often a great choice to make, but you shouldn’t make an impulse decision about it. Even if it’s a good investment, make sure to research it. You need to know that your financial situation can handle it, and you should learn more about the area where you’re buying. Also, evaluate your reasons for buying the house. For example, if it’s only an investment, is there a safer one?
Taking the time to make the right decision is just another investment in your future.
Why Winter Park?
So, once you’ve made the big decision, why should you buy a second home in Winter Park? There are a lot of different reasons, but a big one is that it’s a safe place to buy in Colorado. It’s relatively cheap compared to similar towns, but it’s still growing and the property values appear to have a bright future ahead of them. Also, it’s an easy trip between Denver (and Denver International Airport), and there are tons of great activities to spend your time while in this beautiful mountain town.