Demand for second homes remains healthy despite a slow housing market. With homebuyers enjoying an advantage in many markets, now may be the time to buy that second home. Whether you’re dreaming of paradise or profit, master these 10 tips for a smart investment.
Resist the urge to impulse buy.
Don’t come back from vacation with the keys to a new house without having thoroughly researched your purchase first. If you buy on a whim, you may end up with a second home you can’t afford or that doesn’t fit your needs.
Evaluate your needs and long-term goals.
Be realistic about what type of second home suits your lifestyle. If you’re looking for a weekend getaway, staying within a day’s drive of your primary home could be a good move. If you’d like your second home to someday serve as a retirement spot, assess the home’s accessibility and check out health care services in the area.
Get to know the area before buying.
Even if you’ve been visiting the same vacation spot for years, you need to get to know the area from a nontourist perspective if you plan to buy there. Visit the place off-season, and talk to locals to get their take on the area.