Is It a Good Idea to Buy a Second Home? Find Out if a Second House Is Right for You
Have you been asking yourself, “should I buy a second home?”
Maybe your browser history is full of queries like “where should I buy a second home?” or “when should I buy a second home?” and you are still looking for answers.
When it comes to buying a second home, the process can be difficult to understand. But don’t worry, Peggy Hoag Real Estate is here to help you navigate the ins and outs, ups and downs of the entire process. Curious about why you should get a second home or what you should do before you start looking? Keep reading, because we will answer those questions and many more
Table of Contents
- When to Buy a Second Home: 3 Reasons You Might Want a Second Property
- Is it Smart to Buy a Second Home?
- How Soon Can You Buy a Second House?
- 4 Important Steps to Take Before Buying a Second Home
- Let the Experts at Peggy Hoag Find Your Second Home in Oregon or Washington
When to Buy a Second Home: 3 Reasons You Might Want a Second Property
There are many great reasons to buy a second home. From added flexibility for your summer vacations to a home base for your blossoming business, a second home can provide you with the variety you crave.
#1: You Want a Vacation Property
Hoag Real Estate is your source for professional, experienced real estate agents. We have been in operation for over 30 years for a good reason — we know what we are doing and we care about our clients. We have lived and worked in the Portland area for years.
You’re relaxing on the beach. The sunlight falls perfectly on your skin as the birds sing high above.
The waves lap at the shoreline, lulling you into that perfect, mid-vacation happy place.
You can feel the stress melting off of you and, once again, you find yourself wanting to invest in a beachfront property.
It makes perfect sense. You could come on extended vacations, especially since your boss now allows you to work remotely. You could get the kids and grandkids together for the holidays.
When you aren’t there, you could rent it out to offset the mortgage.
You’re wondering, should I buy a second home as a vacation home?
Vacation homes are only growing in popularity. Having another home to escape to for a long weekend is a trend that doesn’t seem to be going anywhere.With vacation properties for sale throughout Oregon and Washington, Peggy Hoag Real Estate can help you find the perfect vacation home.
#2: You’re Looking for a Sound Investment
As real estate value skyrockets, you may find that it is a good idea for you to buy a second house as an investment. Having a property in a high-demand area offers you the opportunity to rent or flip and you may find that these options more than cover the initial cost of the home.
It has been said that investing in real estate is one of the best ways to build wealth and many of today’s richest agree.
Buying a second home allows you to make an investment that will almost always have value. Housing is always needed and housing with a view is a prize that many people are willing to pay for. If you are looking to diversify your assets, purchasing a second home just might be the way to do it.
#3: You Need Somewhere to Operate Your Business
Especially with the pandemic, creating and running your own business has become increasingly popular, rising exponentially in 2020 and maintaining that popularity fairly consistently.
If you started a business and need more space to operate it, a second home just might be the perfect solution.
From more space for inventory, operations, or packing to potential business-related tax breaks, you might find that there are many reasons to buy a second home from which to run your business.
Is it Smart to Buy a Second Home?
Is it a good idea to buy a second home? That depends on your situation. For some, a second home adds freedom, security, and excitement. For others, buying a second home causes financial strain, stress, and uncertainty.
Generally speaking, if you can comfortably afford a second home and you want to buy one, you should strongly consider it. But if you can’t afford a second home without putting yourself in an unstable financial position, you probably shouldn’t start shopping just yet. Whether you go for it or not, you want your second home to be a blessing and advantage, not a source of stress and worry.
What Are the Advantages of Owning a Second Home?
Owning a second home certainly has its benefits. For instance, you may enjoy:
- A personal vacation home
- Tax benefits
- Income from renting the home out
- A legacy to leave to children and grandchildren
- A safety net in case of emergencies
Are you suddenly in need of quick cash to take care of a medical emergency? A home equity loan offers you the money you need and your primary residence is left untouched.
Do you live in an area prone to natural disasters such as wildfires, hurricanes, earthquakes, or tornadoes? A second home offers you security knowing that, in the case of an evacuation, you have somewhere safe and comfortable to go.
At Peggy Hoag Real Estate, we are experts in helping you find your dream home, even if it is an out-of-state property.
Why Shouldn’t You Buy a Second Home?
Financial instability, desire for a low-maintenance lifestyle, and fluctuating markets can all be good reasons to hold off on buying a second home. When you have two homes, you have two of everything — from sheet sets to utility bills to lawns needing maintenance. Is it smart to buy a second home? Yes, and also no. Before making such a large investment you should be sure and consider all sides of the opportunity
How Soon Can You Buy a Second House?
If you are wondering “when should I buy a second home?” you need to be certain of two things before you start looking. Make sure that:
- You can afford it.
- You find a home you like.
As soon as you can afford a second home, you should start looking to buy immediately. Because property values tend to appreciate, buying early can save you thousands and make you even more money if you ever sell.
4 Important Steps to Take Before Buying a Second Home
Before setting your sites on a property, you should consider a few things. There are some steps you ought to take before making your final decision.
#1: Determine Your Goals
What is your goal for your new home? Do you want it to be:
- A sanctuary for relaxation after a few weeks of work?
- A gathering place for the family?
- An investment in financial stability?
- A legacy estate for generations to come?
Spend some time thinking through your goals and what purpose you want your second home to serve. You want to make sure that the one you decide on will meet your needs
#2: Set Your Budget
Shopping without a pre-set budget is a dangerous and often disappointing venture. Before you start shopping, consider your budget both for purchasing the home and maintaining it.
- Price of the home
- Closing fees
- Property taxes
- Utilities and general bills
- HOA fees
- Maintenance costs (lawn care, renovations, etc.)
#3: Get Pre-Approved By a Lender
OOnce you have decided on your budget and goals, it is time to find a lender and get pre-approved. This will help speed up the process and get you into your second home as soon as possible.
#4: Find the Right Agent
Finding the right agent is key to finding and buying a great second home. You want an agent who knows your purchase area and has experience in luxury real estate. Especially in the Portland area, having a knowledgeable agent on your side is vital. You need someone who prioritizes your wishes and knows how to get you what you want.
You should do all you can to personally tour potential homes.
Let the Experts at Peggy Hoag Find Your Second Home in Oregon or Washington
If it is time for you to buy a second home, Peggy Hoag Real Estate is ready to support you.
We have over 30 years of experience in luxury real estate and we are here to help you find your second dream home in Oregon or Washington. Contact Peggy Hoag Real Estate today and start the process of finding your perfect second home.