SECOND HOME / PROPERTY PURCHASE
If you are considering buying a second home or property, be smart about it.
Is your dream to acquire a property near the beach, or a river, dam, lake, in the mountains or your favourite resort? Having a second home can be rewarding in terms of both investment and personal reasons. When you buy a second home, consider the financial and personal benefits that can be derived from the purchase, including:
If your home is in a popular tourist spot, you may be able to rent it out and earn additional income when you’re not using it.
Ongoing income and cash flow:
If you choose to rent your second home, it could provide ongoing income to offset your initial investment & maintenance expenses and may provide tax benefits in the form of depreciation expense.
Potential tax benefits:
Mortgage and home equity interest payments and property taxes may offer additional tax advantages.
Potential property appreciation:
A second home may be a good long-term asset to hold on to, as homes can appreciate in value.
Is staying in your second home less expensive than hotel stays or renting? If yes, then there’s an excellent opportunity to turn your second home into an exclusive Lodge or Guesthouse.
Additional responsibilities to consider.
There’s more to buying a second home than having a place to relax.
In addition, you can receive valuable information and assistance by working with a real estate agent to locate properties for sale that meet your needs, as they make it their business to know about communities and the homes within them.
As you begin your search, bear in mind at all times: Location. Features. Amenities.
Take heed of the above considerations to ensure that your second home truly becomes the dream home you intended it to be!
- Consider whether you will occupy your second home exclusively or if you plan to rent it out to others when you’re away.
- You may need to install safety features with future renters in mind.
- Home values can fluctuate and will change over time. This means property values can decrease. Every community and situation is different so it is important to bear this in mind.
- You may need to think about monthly maintenance costs — such as homeowners association dues, security, cleaning services, flood insurance and utilities.
- Carefully consider your monthly cash flow to ensure that you’re able to manage the additional expenses.
- You will need to consider the financial implications for things such as repairs, cosmetic improvements and furnishings for your second home.
- If your second home needs repairs, consider Build Loan or Finance Bridge if you do not have sufficient financial resources available, which may enable you to complete such repair work.
- Another streamlined way to purchase and renovate your home is Bond Refinance.