Buying A Second Home? Here's What You Need To Know

Second Home

Purchasing a second home or a property should be considered only after keeping in mind careful factors that will not affect the overall finances of a person.

Six Key Factors To Consider 

1. Is It an Investment?- If the property is maintained well, and is in a desirable area, it can be considered as an investment. One needs to be strategic here in choosing the property. 

2. Is It Affordable?

Having two properties also means dual responsibilities. One should keep in mind all the bills, costs and insurance before buying a new property. 

3. Understand the Tax Picture

It's also important to understand the tax liabilities of the property. One should check if one can qualify for deductions on mortgage interest, property taxes, repairs, depreciation, and other operating costs.

4. Expect the Unexpected

When a new property is bought, there are unexpected costs like repairs, maintenance that one needs to take care of. Unforseen situations may also hit for which a person has to be ready. 

5. How Will It Be Used?

Before buying a new property, it should be clear in mind as to what the new property will be used for, rent or any other purpose. 

6. Maintenance 

It's also a point to keep in mind as to who will take care of the property being bought. One can hire a caretaker or a management firm to take care of the property. 

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