Buying a second house is a good thought. When you think of buying a second property, there are so many pros and cons that’s needs to be weighed. There are also various reasons for wanting to buy a second house: few want property for a getaway, seeking rental/lease income, planning for retirement. People may look options like beach house or ski condo, a property in vacation destination & as an alternative income through rent. Though buying a second property is exciting, following are the few factors that needs to be considered.
*Cost consideration of buying second house: Buying a property requires budgeting for a property tax, insurance, mortgage and maintenance charges. When you are thinking to invest on rent or lease when not there, you have to plan for a long run maintenance cost and have to hire someone to take care of the property. If you are buying a home for $3500, keep $350 i.e. 1% for the annual maintenance. Vacation property would cost around 20% of the property cost.
*Calculate if you can afford for a second home: Plan to fit your mortgage and all your debts within 36% of your monthly gross income.
*Buy a property in right location: If you are planning to buy a property for your retirement, you might plan a property in holiday location. But if you are buying a house to rent, then buy a property in top cities where you can find:
*Amenities - like gym, sauna, tennis courts, etc
*Community - where there is a close-knit environment that creates engagement & socialization.
*Security - Properties with locked front entrances & CCTV
A great location, especially a property in the heart of the city, surrounded by good schools, entertainment and amenities will surely get you good return on investments. So, always remember "Location, Location, Location"
*Finally, tracking all the expenses while maintaining the cost of a second home is very crucial. You need an expert to find the right solution and guide you in the right direction.
Here Comes NumReceipt:
NumReceipt is an expense tracker app designed for storing personal/business receipts to manage expense easily. If you really want to get a better sense of how much you are spending on house tax, maintenance, etc. you need to check our app because it's not about how wisely you choose your second property, it’s about how wisely you keep track of your expenses & reports.
To explore the app, click here:
NumReceipt can help to look at your real estate investments in a new way. Visit www.numreceipt.com
What is Financial freedom and how to achieve it?