5 Questions to Ask Before Buying a Second Home
Posted: October 24, 2016
Florida is far and away the number one place in America for buying a vacation property. The Sunshine State’s beautiful beaches, boating lifestyle, and mild winter weather make it a favorite for people who want a second home. Seasonal getaways are not just for the rich and famous today – plenty of people make second homes a priority, no matter what income bracket they are in.
But is a second home right for you?
If you’re thinking about purchasing a second home, consider the following factors before you take the plunge.
How much time will you spend at your second property?
Think about the amount of time you will be on location in your seasonal getaway, not just now, but 5-10 years into the future. Are your kids leaving home soon? Will you be retiring in the next decade? Consider how many years you will enjoy the property.
What sort of lifestyle do you imagine having at your second home?
Are you looking for a family getaway, or an escape from your empty nest? Do you want solitude and tranquility, or easy access to shopping and dining? Are you eager to try out Fort Lauderdale’s famous maritime lifestyle?
Close your eyes and envision what a normal will be like at your second home. Are the facts of the property in line with the idea in your head? Do you research and talk to members of the local community to figure out if your daydreams are in touch with reality.
Do you understand all the costs involved with a second home?
You’re no doubt looking at the cost of your down payment, monthly mortgage costs, and homeowners insurance – but don’t forget about home maintenance, repairs, utilities, new furniture, and all the other little details of owning a home. Those little details can really add up, and most people tend to underestimate them.
If you currently live in another state, don’t forget to check into different insurance requirements and taxes that might be different in Florida from your home state.
How will a second home affect your taxes?
There are some important differences in the way that second homes are taxes vs. your primary residence. Be sure to consult your accountant before you sign on the dotted line.
Are you buying a second property for the right reasons?
A second home can be a smart investment, particularly if you plan to retire there or eventually sell the property to fund your retirement. Research the market to determine the long-term potential of real estate in the area.
If you are buying a second home because you think you’ll save money on vacations – you’re probably wrong. Unless you’re a five-star jet setter who travels six months out of the year, you’ll most likely pay more for a vacation home that you would have on vacation.
Are you interested in buying a second home in Fort Lauderdale? The townhome-style condos at Galleria Lofts offer the perfect combination of luxury living, amazing amenities, and easy accessibility. Contact us today to learn more!