Are you thinking about getting a second home? You may want to pay a little bit more attention because it can be very different from how it was when you were purchasing your primary residence. Purchase and ownership of a second home brings with it benefits and challenges that you may not have faced at all when you were getting your first house. These can make you reconsider a few decisions.
Taxes
The taxes involved in the selling and purchase of second homes are where you'll encounter many differences. For starters, if you rent out the home for a certain number of days in a given year, you'll have to pay income tax, but this will also mean you'll be able to deduct certain expenses.
In some states, second homes are charged a much higher tax compared to primary residences. However, you should also note that local and state real estate taxes on the second home will likely be deductible.
Sellers Prefer Cash
When it comes to second homes, financed deals have been known to proceed slowly and, in some cases, fall through completely. This is why a good many sales made on second homes are in cash. Some sellers may even accept a cash bid if it's lower than other bids that are financed since they proceed a lot faster.
Finding the Right Real Estate Agent Gets Trickier
Many real estate agents are tuned to the needs of young buyers starting a family, or the like. But if your second home is a retirement home or a summer home, you face very different challenges than a young home buyer. Consider looking for specialized real estate agents (such as 55 plus realtors) who can help you find properties that are more geared towards your specific needs.
Insurance
The cost of insuring your second home could cost you several times more than your primary home. This is because the second home might be at higher risk of burglary if it's rarely used. Many vacation homes are also located in areas that are prone to hurricanes and flooding, so you may want to get more coverage on your second home.
When you start looking at homes for sale, you should also talk to an expert so you can get to know what hidden expenses the home will bring. Even a home with a low sale price could end up costing you a fortune unless you spend your money wisely.
After thinking long and hard about what kind of home to buy, I began talking with a real estate agent about getting a deal that I could live with for the rest of my life. I really wanted to find a home and a deal that offered pleasant terms for me and my business, so I began focusing seriously on getting things done. It was amazing to me to see just how different various real estate deals were, and before I knew it, I was making some changes that would work for my lifestyle. Within a few months, things were a lot better. This website is all about understanding and applying real estate deals.