Are you currently in the market for a second home? Is this something you have considered in the past or think may be an option for you and your family in the future? Second homes are certainly a nice perk and families work really hard to make this goal a reality. Below are a few things to consider, think about and try to plan for before venturing out on the second home market:
- Maintenance. Second homes come with their own unique challenges, especially when it comes to maintenance and general upkeep. Typically, you’re not going to be in this home 365 days a year, perhaps not even half the year. It may be just a summer home (i.e. Lake of the Ozarks, MO, or Table Rock Lake near Branson, MO). What if a water line breaks while you’re away? What happens when you make the trek for a long weekend, but when you arrive the hot water heater isn’t working? Worse yet, its 100 degrees outside and the AC goes out? Having a plan in place to address these issues will help you enjoy your investment rather than fixing or worrying about what might need to be addressed next time you visit.
- Logistics. Is the travel time to and from your home realistic enough that you can keep it up and commit long-term? It’s easy coming out of the gate, especially right after purchase, to enjoy the 1, 2 or 3+ hour drive. What about two, three or five years out? Are you willing to commit and/or do you have a plan when you’re not? Nothing is worse than having your dream second home but being reluctant to utilize it because of the travel required.
- Utility costs. It’s one thing to be paying for heat and air in your primary residence; you’re there the vast majority of the time to warrant the expense. With that said, you still have these types of expenditures on a second home, but the difference is most of the time you won’t be there. Think about winter and trying to avoid freezing pipes or damaged TVs and/or other electrical equipment. What about summers and wanting to keep your investment at least somewhat isolated from the elements? You may not need to leave the thermostat running at 68 degrees but running at a temperature higher than that is certainly feasible, warranted that with it comes the expense of doing so.
- Friends and family hurdles. Have you considered how you will handle the logistics of having family and friends over? Are you open to allowing your family to use your home, perhaps even when you’re not there?
- Additional purchases. What else will you need to purchase if you choose to move forward? If you’re on a lake will you need/want a boat or jet skis? If you bought a rural property will you need/want a tractor, mower, brush hog, etc.? Do you have furniture? If the home is already furnished, will it meet your needs or will you need to set aside money in the future for updates?
- Misc. items. Are you allowed to rent the property, should you choose to do so? What covenants and restrictions are in place that you should be aware of? How are the neighbors, what do you know about them?
This list isn’t all-encompassing, but hopefully will allow you to at least think everything through, answer the questions and what needs to be addressed. Being prepared and doing your due diligence will make the process of purchasing more enjoyable and, in the end, will make the longevity of your decision more fruitful.
