#SummerHome :10 questions you need to consider

7/11/16 5:30 PM / by Liz Cruz

It's that time of year again! The summer season has arrived & its hotter than ever! Well, in some spots maybe not so hot, BUT our prices are! Before you dive into our summer inventory, let's prepare for those essential thoughts you should have BEFORE you decide to buy a summer home or a second residence. Here's 10 questions you should ask yourself & be real honest with those answers! 

  1. Can you afford to buy a second home right now? 
    • Seek financial advice from your accountant or an adviser from your financial institution. 
  2. Know the rules; when you're not there can you rent this home out? 
    • Check with the Home Owner's Association or the Subdivision to find out what the restrictions are if any. 
  3. Can you afford ALL of the costs that come with this second home? 
    • Make sure you cover all the costs you may encouter with this second home. HOA fees, taxes, insurance, utilities, furnishings, etc. Even when you're not vacationing there, bills are still coming in.
  4. How much rental income can you get for the home if you can rent it out & do you even need it to cover costs? 
    • Find a local real estate agent in that area to help you get a feel for what this second home would go for in the rental market. Depending on how much you can get monthly, you may not have many costs to cover. 
  5. Get to know the area first; realistically how often will you visit? 
    • If you're not going to rent out your second home while you're away, make sure its somewhere you're going to visit frequently. Its not a good idea to purchase a property that may sit for too long, especially vacant. If you get bored easily you may want to just do a hotel, the scenery won't change for your second home purchase.  
  6. Do you have an emergency plan for this home? 
    • If the pipes burst, do you have a plan of action? Make sure you make friends with a neighbor, have family in the area or a maintenance company check on your second home from time to time to ensure that everything is ok. 
  7. How will you protect it when it is sitting vacant? 
    • If you are predictable with your vacation schedule, you'll need to take steps to make sure your vacancy times aren't great times for the local criminals. Maybe ask a neighbor to sit on your front porch every now & then, get a cool app that turns the lights on even though you're not in town. Great creative to keep that vacation spot safe! 
  8. Will the taxes on your second home make it difficult to pay your taxes on your primary home? 
    • Make sure you do your research on tax deductions for vacation homes. Depending on whether you rent it or not could make or break you. 
  9. Where is the best place for you? Make sure the home is an area that will suit your lifestyle. 
    • Make sure you think long term when purchasing. Will this be your place of interest in the next 10 years? Make sure you consider your family's size, your interests & even your age. 
  10. How do you get there? 
    • Boat? Plane? Train or Car? The best vacation homes are the ones you can go to frequently without breaking the bank or without taking up personal time to get there. 
                                                                                       
Potential #SummerHomes
30 Minutes from Lewes Beach
 
 


 

Topics: Summer Fun, Vacation Home, Second Home, Summer Home, Rental Property

Liz Cruz

Written by Liz Cruz

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