Buying a Second Home? 8 Things to Consider

Buying a second home is a goal that everyone dreams about at some point or another - and why not, right? There’s nothing quite like daydreaming about having another luxury home to whisk yourself away to at the drop of a hat. However, buying a second home is a big decision, and one that shouldn’t be taken lightly either. Even if money isn’t an issue, there are a plethora of things you need to consider before making a commitment to buying a new property. With that in mind, let’s look at the things you need to think about before buying a second home.

Location

Lots of people choose to buy a second home after falling in love with a town or city while they’re on vacation. However, it’s important to do a little more research than simply loving the scenery or the nightlife atmosphere. You need to think about things like the cost of living, whether you’re able to drink water safely from the taps, the cost of home insurance, and whether or not this location is going to work when you get older. There are also other factors like how prone that location is to hurricanes and earthquakes, or how the economy looks. Would you be able to sell this home easily if you wanted to down the line? Make sure you ask yourself these questions about the location before even looking at an estate agent.

Affordability

The next thing you need to keep in mind are the costs associated with buying a second home. Take a look at the prices of mortgages in the area to figure out if that’s an amount you’ll be able to keep up with, especially if you’re splashing out on a fancy vacation home. There might be ground fees or upkeep charges for the grounds if you’re choosing to buy an apartment or condo among many others, so make sure you check for these costs too.

If you’re looking at buying a property that stands on its own grounds like a house or a bungalow, then make sure you take into consideration any improvements that might need to be made to the property before you’re able to stay there. Sometimes it’s more frugal to buy something that’s derelict and make the improvements yourself.

Renting

You should also consider what you’re going to do with the property when you’re not there. There’s a good chance you won’t be living there for several months of the year, and the last thing you want is for your second home to look empty. This will make it susceptible to break ins and squatters. Instead, why not consider renting it out? Not only will your home be empty for smaller periods at a time, but you could also make some serious money from renting it out as a vacation home!

Remember to take into consideration any tax implications renting your second home out might arise. You’ll need to check the laws of the government where your second home is and follow them.

Upkeep

Another thing to take into consideration is the chance of things going wrong with your second home - especially when you’re not around. You need to think about how you’re going to get things repaired. Repairs and upgrades can be hard work, especially if your second home is more than a few hours away. You need to make sure that you’ve got the numbers of some handymen like electricians and plumbing services that you can quickly arrange if something does go wrong.

Not only that, you’ll also need to find a way of letting the handymen in if you’re not staying in the property. Perhaps you could befriend a neighbor with a key in case of an emergency? If that’s not an option, you could consider having keyless entryways installed.

Again you need to think about the prices that might come hand in hand with emergency repairs too. Will you be able to afford the payments if something big goes wrong like asn electrical fault or a big leak? You’ll need to make sure you have money set aside just in case.

Obviously, the ideal thing to do is to make repairs while you’re staying there to lessen the chances of things going wrong for the times you’re not there. Essentially, you need to think about the upkeep of a property you’re only staying in for a few months of the year!

Area

You also need to think about the area. While you might have fallen in love with how picturesque it is, you need to make sure it’s a neighborhood that you’d want to live in. Take the time to speak to some locals and get to know what kind of atmosphere you can expect. Not only will you get the true ins and outs of the area, you’ll also make some friends so that you’re not completely isolated when you first stay there.

If the place you’re thinking of buying a home in is a popular tourist destination, it’s also a good idea to visit outside of the tourist season to see if you still like the area. Lots of popular tourist destinations shut down a lot of their stores and attractions once the tourist season has ended, so it’s important to make sure that you’ll still be able to get things you need like access to food or being able to go to the bank.

If you have children, it’s important to check if there are nurseries or other forms of childcare available, especially if you’re going to be working while you’re there.

Shared ownership

Buying a second home is a big responsibility, and another route you could go down is choosing shared ownership of a property. Perhaps a family member or a friend is interested in buying a vacation home too? Not only would it dramatically reduce the overall cost of your investment, but it would also take some of the responsibility off your back if something goes wrong.

Even if family members or friends aren’t interested, there are other options. You could speak to your estate agent there to see if there are any other interested parties in the property you’re viewing. Of course, it’s important to make sure that everything is above board to avoid any complications.

There are downsides of shared ownership such as agreeing on dates to use the property and fairly sharing the costs associated. It can become particularly complicated when trying to arrange such things with strangers, so it’s important to establish some kind of rapport right from the start.

Sustainability

Another important factor to take into consideration is how sustainable the property is. The last thing you want to do is buy a second home that’s going to cost you lots of money to run and damage the environment. You’ll need to focus on:

Energy efficiency - make sure you check the property's energy efficiency when you’re viewing it. Check the state of the insulation in the property. Even if you might plan on visiting during warmer months, the last thing you need is a property that’s going to be too hot or too cold. Not only that, heating and cooling the property will also cost less money if there is ample insulation. You might even want to check whether the windows are double or even triple-glazed. If the property isn’t up to par, it might not be worth the investment.

You could also consider having solar panels installed to generate energy for the property, which will save you lots of money in the long run. Not only that, depending on where the property is, it might also qualify you for tax rebates.

Water conservation - if you’re planning on buying a second home in an area where water supply might be scarce at times, it’s important to look into how you can save water and always have access. Things like rainwater tanks are an ideal solution for being able to water your garden without using a hosepipe.

Landscaping - take the time to think about how your outside areas are going to cope in the environment they’re in. Again, if you’re thinking of buying a second home in a warmer climate, you need to think about how the plants and trees are going to survive when you’re not there to tend to them. Choosing plants that naturally thrive in those conditions will save you time, effort, and money.

Accessibility 

Finally, one last important factor to think about is how accessible your second home is. Try not to get caught up in the excitement of having a fancy second home! Think about who might be visiting and how accessible it will be for those who might have mobility issues. And, if you’re planning on living there full time when you’re retired, will you be able to easily move about? Does the property have stairs? Will you need a wetroom or a walk-in shower? Is there ample parking? Are there bus routes nearby? Ask yourself all of these questions before committing to anything!

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