3 Important Tips For Double Home Ownership
Updated: Jan 17
People who own more than one home is rare, even for the upper-class, but if you have the will and finances to own more than one house, more power to you. Second-time home buying is a process that is very similar to first-tme home buying, with the biggest difference being you aren’t selling your old home before or after.
If you're looking to own more than one home, there are many helpful pointers you can consider courtesy of the best Onset real estate professional available. Here are helpful tips to make double home ownership a cinch.
Find a Good Purpose of a Second Home
Of course, you cannot live in both homes at the same time, but homeowners have been able to find many great uses out of a second home. The primary use is residing in the second home during the summer. These homes are often considered vacation homes that owners call home to as their seasonal residence. If there’s a place you’ve fallen in love with on vacation, buying a home in that area can allow you to easily travel there on a routine basis.
A second home can also be a way for you to make money. Put the property up for rent and you can have a tenant live there for the monthly rate you prefer.
One thing to know, though, is that the intent of your second home determines what types of loans you’ll qualify for in order to pay for this house. Oftentimes, you’ll be left with higher interest rates if you use the second home as an investment property compared to a home that you want for yourself or your family.
Understand the Costs Involved
You rather not gravitate towards a beautiful home only to find out later that you’re not able to pay for it. So, you need to do proper research on what buying a second home will actually cost and what homes can work within your budget.
Extra costs to consider include insurance, furnishing, maintenence, winterization if applicable, and travel depending on how far the home is from your first home and what you need to travel along with you.
However, just because you aren’t selling off your first home doesn’t mean you can’t use it to pay for your second. In fact, you can access more money if you have built up some equity on your first home. If mortgage rates have decreased compared to what you’re paying on your home, you can consider a cash-out refinance as a means to have more money for a second mortgage.
Look for a Trusted Lender
It’s hard to manage two homes at once, so you’ll need to look for the right lender, not just the lender with the biggest loan available. Of course, it will be hard to find the right loan on your own, so homeowners often get help with a trusted real estate agent or broker to help them find a good loan that they qualify for. With this in mind, you’re sure to find an attractive loan that’s within your capabilities of paying off.
Buying a second home is easier than one might think, so long as the finances allow it. Consider what you’d like to use the home for so you can find a great mortgage. Trust a real estate agent or broker to find you a great loan that you qualify for. It’s also worth considering what you’ll need to pay for after you’ve bought the home, so you can keep all your belongings safe and only pay for utilities when needed.