3 Things to Know When Buying Your Second Home
As a first-time homeowner, you know what it takes to get through showings, closing, and moving day. You did it all and probably have quite a story to share with all your friends and family! And now you are faced with buying your second home – with the intention of moving in or keeping it as an additional home for the summer or winter. Maybe it’s not been all that long ago since you bought your first home – or maybe it’s been a few decades.
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Here are 3 questions to consider before buying your second home:
- Is it affordable?
It’s true that mortgage rates are extremely low right now, making it a great time to buy a home – but at the same time, don’t think that just because you might have gotten a low rater on your last house that you will be able to obtain the same (or better) rate, either. This is especially important if you are trying to buy another home while still living in your existing one. If you are looking to sell it before occupying the new one, are you able to afford the possibility of paying two mortgages per month in the meantime? Or are you planning to keep both properties? In either case, that’s one thing that lenders will look very closely at, to ensure that you are not at risk of defaulting on one or both mortgages.
- Does it meet the needs of your household?
Perhaps you’ve been wanting a vacation house for years, or you’re wanting to rent your existing home and move closer to school or work. Depending on what phase of your life you’re in right now, that might mean that your children are getting ready to start high school or college, or you’re ready to downsize into something smaller. Buying your second home will have different expectations than that of your first, so knowing what you’re needing versus what you like might be two different things. Be sure before you start the process that a second home is really what you want before you start the process. And if you do start house hunting, don’t rush into making a decision.
- Is it to your advantage for tax purposes?
Purchasing any property is an investment, and first-time homebuyers are usually keen on finding whatever tax breaks they can to make the home more affordable. However, when it comes to buying your second home, you might find you aren’t so lucky. While some tax breaks still do exist, such as a deduction on the interest of your first home’s mortgage, and a deduction on property taxes for both homes, it’s worth reviewing what home credits will apply or not.
Are You Looking for a Home in Naperville or its surrounding Suburbs?
If you need assistance in selling your Naperville property please do not hesitate to contact us at www.RyanHillGroup.com. Call Listing Agent and Managing Broker of Ryan Hill Group, Teresa Ryan, at 630-276-7575 for a no-obligation home sale consultation.