According to most recent census data, roughly 6% of American households own a second property, usually within 150 miles of their primary home. However, for those thinking about owning a second home as an investment property or otherwise, here are a few things you should know.
1. Homeowner’s Insurance
Owning a second home requires protecting it as if it were your primary residence. The best way to do this is by purchasing a separate policy for your second home. This ensures that if something were to happen, you would not lose both residences.
2. Additional Costs & Utilities
While you won’t have to pay for rent, you will have additional costs that come with owning a home. Additional costs may include property taxes, maintenance, utilities, renovation costs, and more.
When considering owning a second home, it is important to think about where the home will be located. Are you buying a second home because you love the location? Are you buying it as an investment property? This is something that needs to be considered before making any major decisions.
4. Home Size
When you are considering buying a second home, you must consider the size of the home. You want to make sure that this will fit your needs and lifestyle. Will your family be comfortable in it? Are there enough bedrooms? Will you have room for guests?
5. The View & Neighbors
Does the home have a view of anything important to you? Is there anything right outside your door that might create noise issues, such as being close to train tracks or an airport? If there are neighbors nearby, are they people that you would enjoy spending time with? All of these are important questions that need to be considered before owning a second home.
It is also key to think about accessibility. Can you get to your second home in a timely manner? Is it close to major roads or highways? Will there be enough parking space for guests? If there were an emergency in terms of your family or renters, you want to be able to get to your second home promptly.
7. Lifestyle Needs
Are there special appliances or other features that your current home has? Do these features need to be a part of the second home as well? Perhaps you want certain features at each property, like a pool at your primary residence and a beach-front view at your second home.
There are a lot of things you should consider before owning a second home. But, this can also be a very powerful investment if the home is in an ideal location. Again, not only will this give your family a place to stay, but it also provides a rental property that can be used for additional income.