Considerations Before Buying a Second Home

Considerations Before Buying a Second Home

(4 Bedroom Vacation Home in Watamu available for sale for KES 33,000,000)

Buying your first home is like a rite of financial passage for many people. It means graduating from paying rent to someone else to building your own equity. But, what about buying a second home? Is it a good investment? Well, just like all other financial decisions, it depends on your; personal preferences, long-term goals and current financial situation. In any case, the best reason to buy a second home is that you actually want to use it as your second home.So, before you embark on this exciting endeavour let us look at the only 3 main questions you will need to consider:

  •  What is the purpose of your second home?

Understanding why you want to buy a second property is important. You need to make a decision on whether you want your second home to be a vacation home, a retirement home, a home you can earn rental income from or even a combination of all three. If you are considering a vacation home you should choose a place you can see you and your family retreating to and enjoying for years. It should give you the flexibility and freedom to enjoy and escape to whenever you want especially if you are lucky enough to not have to let it out. If it’s a retirement home, you should consider the features of the building. Would a triple or even double-storey house have too many stairs when you are at your retirement age? Also, consider the size of your home especially if you plan to convert your vacation home to your retirement home. Will you feel like the house is too big once all the children have grown up and moved out? If you want your home to be a holiday let, you will need to familiarize yourself with the responsibilities and risks that come with being a landlord. Being a landlord isn’t for everyone but if you choose to rent out your home you could consider being in charge of the process yourself or hiring a property manager to handle the needs of your tenants. Just keep in mind that this will be an added expense.

  • Can you afford to buy a second home?

You are going to need to run the numbers to make sure you can afford it. Think about the total cost of owning a second home as well as the recurring expenses, and not just
the home’s selling price. Only consider a second home if you have the funds to buy the property or if you have come up with a financial strategy that will not strain your budget. You will also have to factor in the cost of upkeep including insurance. Remember that now you own two houses and so you’ll be paying double the insurance, double the upkeep and double the utilities. You don’t want to take on more than you can practically afford. Resist the urge to buy a property on impulse because you know you are in the market for one and have or are in the process of working out the finances. You don’t want to go on a vacation and come back having purchased a house on impulse only to later feel you bought it for the wrong purpose, did not like the location for a long term
investment or cannot afford the upkeep.

  • Where will your home be located?

You want to choose a location that meets your needs for a long term investment. I mean, they do say you can immediately change almost anything about your home except the location. So, this is something we need to consider very carefully. Some of the things to consider include ease of access to and from your home. You also need to consider your environment. Are you looking for a quiet serene place? Is privacy more important to you? You should also not underestimate the convenience of having nearby amenities. What is the proximity between your home and the nearest shopping centre, recreational facilities or hospital? That beautiful remote home you are
admiring, may not have access to the quality of urgent health care you may need in your golden years. To work out the answers for all the three
questions above, it is advisable to use the services of a Real Estate Agent. Due to their wealth in knowledge and experience in helping
buyers purchase second homes, they will be able to understand what you are looking for and even inform you of more matters you need to consider. Plus, Real Estate transactions are complex and you want to make sure that you don’t get the wool pulled over your eyes.

(3 Bedroom Retirement Home in Nanyuki available for sale for USD 695,000)

BY LANGATA LINK REAL ESTATE

Related posts

Mixed-Use: The New Real Estate Development Buzzword

According to the World Health Organization, cities will hold 70 percent of the world’s...

Continue reading

KARIBU HOMES RIVERVIEW BUS TOUR TESTIMONIALS

We enjoyed the tour very much, we liked layout of the houses. We learnt more about mortgaging...

Continue reading

Vipingo Ridge: Conservation at its core

On a hillside overlooking the Indian Ocean lies a gated community in which people from all over...

Continue reading

Join The Discussion