Tips on Buying a Second Home


What are the things that you should keep in mind while buying a second home?

Buying a second home involves a lot of planning, especially because of the rapid changes in the economic scenario. Seniors in the US need to consider a number of things before settling for their choice of property.

Ideally, you should always zero in on a property that is located in a region with a developed economy. According to the National Association of Realtors, places that have witnessed a gradual economic development and home price appreciation are suitable for buying second homes. Here’s a checklist of the things you need to keep in mind:

  • The location: While buying a home, location is probably the most important factor. In case of a second home, it is essential to take several factors into account. It should be located as near as possible to the city center. If you prefer to stay away from the noise and pollution of large cities, you’ll find it convenient to stay in a neighborhood which is peaceful, but from which the city is easily accessible.
  • The condition of the home: If you are buying an old house, inspect it carefully. You don’t want to waste a lot of money in repairs later on.
  • Your neighbors: Post retirement, you will find adjusting with difficult or unfriendly people harder than when you were younger. Try to meet the people living in the neighborhood of your choice. If they are hostile to the idea of having you as their neighbor, it’s likely to show in their behavior.
  • Nearness to recreational areas: Retirement offers you the scope to participate in a lot of activities. If you like being active, you can hunt for a property close to the most happening beaches, ski resorts or mountains. If a quiet life appeals to you, you may want to live in a neighborhood with parks, libraries and walking trails.
  • Future prospects: You can have an idea about the way the area is going to develop by looking at the current local real estate trends. Upcoming malls and hotels are an index of the kind of development that the region is expected to undergo. The more developed an area, the more valuable your property becomes. High property values are especially useful when you want to go in for Reverse mortgages.
  • Finance: You need to work out the financial implications of buying a second home. You will have to decide whether you which home loan you want to opt for to finance your property. If you already have the money, you need to work out whether keeping your money blocked in real estate will affect your other expenditures in any way. Remember that you need to keep some money for emergencies.