Buying a second home or vacation home in New Hampshire
There are several reasons for purchasing a second home. Many people see it as an investment which they will turn around and sell a few years from now. Others use a second home as a vacation getaway. Still others see a second home purchase as a way to develop another income stream. Whatever your reason, there are pros and cons to each.
If you are purchasing a home as a simple investment, try to make sure that the house will sell when you expect it to – even years down the road. Do your homework regarding the area this house is in before you buy it. For example, is the town planning to expand near that property? That could lower the home’s value when the time comes. Also keep in mind that you must pay taxes and insurance on a home even if it’s unoccupied.
Some people will purchase a home specifically to rent it out for cash flow now and sell it later. Remember that your tenants will at the very least cause some wear-and-tear damage that you will be responsible for repairing. It’s hard to sell a home that’s in ill repair.
A vacation home can turn into a retirement home if it’s planned out properly. When you finally decide to make your vacation home your permanent residence, you can sell your old home giving yourself a comfortable little nest egg to sit on. Owning a second home can certainly have benefits, but there are a few things to consider first.
Price is paramount. You may feel that purchasing a second home will not put much of a crimp in your financial lifestyle. This may be correct, but it’s best to put all your expenses down on paper just to be sure you can easily afford this new large purchase. If there is any question at all, look for ways to reduce your expenses or your debt.
Location is key. Where do you want this new house to be? Are you going to live in it or rent it out? Taxes also vary depending on your location, so be sure to get a good idea of what they will end up costing you each year. Also, will this become your retirement home? Make sure the home is in a part of the country you want to live in when you eventually walk away from the rat race.
Since this is your second home and not your primary residence, you can take as long as you want to find the perfect home. When your primary residence is on the market at the same time that you’re looking to find a new home to move into, things can get a little hectic. With a second home you can feel more relaxed during the “house-hunting” process because you’re not under the gun to get things done yesterday. Just be certain that this is the home you want for the reasons you want it.
Jim Miller is a full time full service licensed Realtor® in the Southern New Hampshire area with Bean Group and has many years of experience buying and selling New Hampshire Real Estate .
Contact Jim direct at 603-801-3987.
Home Buying Tips