Avoid These Common Mistakes When Buying a Second Home

photo-1490670980230-f81038ad5033.jpg

Buying a second home is an exciting time, whether you are purchasing as a future retirement property, or a family vacation home, avoid making these top mistakes.

Forgetting to evaluate your long-term goals

Are you dreaming of paradise or a profit? Don’t forget to ask yourself what are your long-term goals with the home? Are you planning on using the home as a rental, vacation property, or as a retirement home to downsize to in the future? These questions will help you narrow down the right type of second home to invest in.

Visiting the area only during the peak season

If you are purchasing a home with the goal to vacation and haven’t spent much time in the area, visiting during the “off-season” can give you a better insight on the local community when it isn’t peak tourist season. My goal is to educate clients on neighborhoods and the local communities to help you make the best decision for your needs.

Not looking into tax benefits

Consider the tax implications of your purchase. According to Bankrate.com if you use your home as “a true second home, you could get a tax deduction on mortgage interest payments, on the same terms as for your first mortgage, as well as for the property taxes.” You also have the option to rent out your second home. If you choose this route you “will have to consider additional tax ramifications, particularly if the rental period extends beyond 14 days a year.”