Is It Financially Feasible To Buy Another House? It Can Be. If You’re Sick Of Renting In An Area That You Frequently Visit, It May Be Time To Think About Purchasing
August 29, 2016
Who doesn’t want a second house? Buying a second home is just about everyone’s dream, however it takes a certain amount of income to be able to afford it; income that most people simply aren’t able to spend. Who doesn’t want a vacation home where they can go anytime they want to get out of the city? So, if you’re lucky enough to be able to afford it, there are still things you should consider before you pull out a down payment check and pull down a loan.
Buying a home in areas like these will give you thousands of memories; from the gorgeous views, the many activities you’ll be able to do, and five-star dining restaurants. Owning a home is difficult, and you should proceed with caution when buying a second. Here are some good things about purchasing this second home.
You’ll have amazing views. If you purchase a home high up in the mountains, you’ll have some breathtaking moments, such as watching the snow fall from a hot tub on the balcony. You’ll also be able to ski whenever you want. Also, you can invite all of your friends and family for vacations, which will be a blast. Since you can go any time, you’re able to go before all the tourists go, and you can have the ski mountain to yourself!
You’ll have access to fun concerts, be able to enjoy five-star spas, walk along the beach in the mornings. The options are endless. You’ll also have a huge variety concerning the types of homes to choose from.
There are also some downsides that will really impact whether or not you want/should take the leap. This is going to be very expensive. Since you’re purchasing a home, its assumed you already have a primary home. Given this, you know how much it costs to maintain and own a home. Multiply what you’re paying and maintaining now by 2x. Resort communities are at least twice as more expensive than a primary home. You should discuss your plan in depth with a realtor who is knowledgeable of the areas you wish to consider.
You’ll be paying twice as much when you make a trip to the grocery store. This is because in resort communities, they’re able to charge this much, so they do. On top of the fact that it costs more for businesses to run, as they’ve got to make up for the “off” seasons where there won’t be much activity, i.e. as much money coming in.
You still are going to have to pay bills. You’ve likely got cable and internet, gas/electric, water. Everything you pay for now at your primary home, you’ll have to pay at this one too. To add to it, if you need repairs or any maintenance, you’re probably going to have to hire someone to do it for you, unless you’d rather fly and do the chores yourself every few weeks.
When you daydream about what it is like to live at your prospective second home during the “on” season, you might want to consider that during the “off” seasons, it may not be much fun. The amenities are scarce, many shops are closed, most concerts are playing elsewhere. Plus, the overall “feel” of the community won’t be the same.
You could get stuck in a hurricane, a snow-storm, a flood. Weather is unpredictable in these communities. Since resorts are usually in the mountains, on a beach, or an island, expect some messy weather at times.
Potential Trouble Accessing The Area
You also should consider how you will get to the home. If it is in the mountains, you may have a tough time to get in and out if there is a snowstorm. For example, maybe you planned a Christmas vacation, but when you get to the airport your flight is cancelled until further notice because of a snowstorm. In this case, your Christmas vacation is either delayed, or fully cancelled.
Renting the home can prove difficult. Also keep in mind, that even when a renter puts down a deposit, they can still cancel. This will leave you with an empty house. All sorts of things can happen regarding renters, so don’t depend on them to pay the mortgage. Owning a second home in a vacation area can be the purchase of a lifetime. However, just be sure to weigh all pros and cons so you don’t find yourself in a mess, or regret.