You’ve done this rodeo before, but now you’re buying a second home. If you need help deciding whether or not to buy, here are four things to know when buying a second home in Menifee.
Before you begin looking at any property, it’s important to start at the very beginning with your finances. Just like with buying your first Menifee home, you shouldn’t be looking at properties that you may get attached to before knowing what you can actually afford.
Start looking at whether you can afford the second mortgage. Remember, lenders will often charge more interest on a second property, especially if you choose to rent it out. Many lenders think of rental properties as bigger risks because new people are coming in and out.
Of course, there’s also other expenses to consider. You’ll have to pay property taxes on your new home as well as insurance and utilities like water, gas, electric and trash removal. These bills will never stop, even if you don’t visit your second home for a few months. Maintenance expenses will also crop up from time to time.
Location is vital when purchasing a second home. You may love a location by the beach, but if you know you won’t be able to get out there regularly, then what’s the point? It would be better to buy a how in a closer location so you’ll actually visit it.
Look for locations where you can actually spend a lot of time. If you like living by a beach but don’t live near the ocean, look for a lake house instead. Find little ways to compromise, and look for rental opportunities. Locations with great rentals means you can rent out your property when you’re not using it.
Your insurance office should be your next stop once you decide how much you can afford and where you want to buy. Some insurance companies like to bundle deals together, so if you’re using the same insurance company for your car and homes, then you may be able to get a better deal.
This, of course, doesn’t mean that you’ll be paying a low rate. Certain factors can drive up insurance costs, such as flooding and swimming pools. Factor in different scenarios to decide exactly how much you’ll end up paying.
After you’ve done all your homework and double checked your finances, it’s time to start really looking for a great new Menifee home for yourself. This is an exciting time, and since you’re not looking for a primary home, you can take your time and find exactly what you want at the right price.
Think of your second home as a vacation rental and make a list of all the things you need and want. This time around, you can be a little more generous to your wants.