Many of us dream of owning a chalet in the mountains, a beach house retreat, or a cool apartment in the city, but we never take the plunge. Buying a Southern Maryland second home is a big financial and life-changing step that requires a lot of thought. How do you know if you’re ready for a second property? Follow the steps below and find out how to go about preparing for the purchase of a second home.
Is a second home affordable for you?
The first step is to assess your financial situation and research the costs of owning a second home. This goes beyond acquiring a second mortgage. It’s important to know that some mortgage companies will charge more interest for a second home if you intend to rent out the property to a tenant or as a vacation home. Lenders categorize a rental as a greater risk than a property used as a primary residence.
When you are not using the property as a residence, can you afford the maintenance, insurance, and property taxes? Gas, electric, garbage disposal, and water utility bills all require paying, even when you are not using the property.
Like your primary residence, unexpected upkeep and repair costs always appear at some stage. A large garden for summer BBQs and family get-togethers is a great idea, but you must be prepared for the landscaping costs to maintain the property when you are away from your second home.
Another cost to consider? Hiring a property manager to check on your Southern Maryland second home may be advisable, especially if you plan on leaving your property for longer than a few weeks at a time.
Will you visit that location enough?
A second home on the beach may sound ideal, but will you have the time to visit your new second home as often as you would like? Unless you plan on renting out your second home for large parts of the year, it may not be a good idea to invest in a property that you will only be able to use a couple of weeks a year.
But, if you already spend a lot of time in a location and are able to afford a second home, then purchasing a Southern Maryland vacation home may be a great option for you.
How much will insurance cost?
After you’ve looked at your finances and found the right location, researching the cost and considerations of insuring a second property is next.
Start with the insurer of your primary residence. By insuring both your properties and any vehicles with the same company, you may be eligible for discounted rates.
Remember that many factors affect insurance rates. For example, a second home that is in an area affected by flooding could have higher rates. Or, a home with a swimming pool – especially if it doesn’t have a fence or gates around it — may mean more expensive rates or no possibility of insurance coverage at all.
Find your new second home, and enjoy it!
Once you’ve worked through the steps above and decided to buy a second home, it’s time to start looking! Contact a Southern Maryland real estate agent and arrange some viewings to find your new dream vacation property.
A second home offers the best of both worlds – you’ll enjoy vacation time in the comfort and familiarity of your own home! You’ll learn over time how much money you save by owning a Southern Maryland vacation home rather than renting for every vacation. Plus, your second home will offer more privacy than busy hotels and resorts. A second home in the right area can also be a financial benefit to you, even if you decide against renting out the property. Depending on how it is used, a second home can also be eligible for some tax benefits.
Choose a location that you love to frequent, and use your second home as a place to unwind, relax, and experience memorable days with the family.
Mechanicsville MD Homes for Sale and Real Estate Services in Southern Maryland. You now have a search engine to help you with your Southern Maryland home search! And I’m ready to provide you with a custom home valuation if you’re considering selling your home. Let’s connect to discuss how I can help you. Contact Kimberly Bean at 301-440-1309
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