Owning a rental property is a great way to develop your net worth and earn some extra income. It comes with a lot of responsibility and can be intimidating especially if it is your first time owning
3 Tips For Buying A Second Home
Dated: August 30 2019
Already own a home and thinking of buying another? Make sure to keep the following things in mind before jumping into any decision.
1. You will still need a savvy agent.
Yes, you read that right. Even though this will not be your first time in buying a home, getting a real estate agent who's plugged into your desired location and any other preference is still a must.
If you are thinking that not getting a buyer's agent can save you, you are mistaken. In fact, the buyer does not pay for the buyer's agent, the seller does. It does not mean that you are going to save that commission if you are not using a realtor.
2. Make sure you can afford a second home mortgage.
Keep in mind that mortgage financing will be calculated on top of any other mortgage debt you have on your primary home. You will still also need to make a down payment and all the other things needed to be able to qualify for a mortgage just like what you did on the first one. Also, mortgage rates may be higher for second homes than what you on your primary home.
Be sure to ask the available mortgage options with your agent and your lender when buying a second home.
3. Consider your goals and check the numbers.
Why would you want to get a second property? Will it be a vacation or a rental home? You can have many reasons why you want to purchase another property, but be sure to identify your primary reason as it may come with perks such as potential tax write-offs, taxes, insurance coverages etc. that may affect your finances.
Other costs such as maintenance, repairs, furnishings, HOA fees must also be considered. It is better if you consult a tax professional for guidance on how this purchase may affect your taxes and deductions.
Lots of people own more than one property and it works for them. But keep in mind that it is always better to be ready than sorry. It is important to know and understand the things that you do to minimize risks and be able to get and enjoy the highest potential from every investment you get.
So, if you are ready to make your second purchase, call or text 907 570-6757 or 907-720-4663 se we can help you start looking for your second home in Alaska.
Vanna has called Alaska home for the past 15 years. As a mother, real estate investor and previous business owner, Vanna brings many different perspectives when working for her clients. She has been a....
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