It is true that after the first home purchased successfully, one gets the confidence of investing in a second home. It is because experience teaches you better than theoretical studies. We hear a lot about buying a home, but unless the venture is tried and tested, you won’t have the experience worth learning. If you are planning for a second home, it is great; however, you need to be careful about not making a few mistakes that can put you in a mess.
5 mistakes to be avoided while planning for a second home
Don’t just buy, invest: There is a huge difference between buying and investing. When you buy, you may not have any gains out of it in the long run, whereas, when you invest, you definitely have gains in the long run. So, when you buy a second house, make sure it is located in an area that is already developed or will develop over the years. If not, you will difficult time selling if need be. Moreover, you won’t find peace of mind to retire there. You should love to visit a place owing to its location and feel. If that’s not there, you will be at loss.
Confidence or over-confidence: Many home-owners believe that once a home is bought, they can win the world. That’s not true. Don’t think, you won’t have to invest the same time and energy for a second home. Keep in mind that this home might be your dream home. So give it as much time as you gave to your first home. Do a proper study of the locality, the property value and the property report. Ensure that the builder has all the documents handy to be transferred to you when you are ready to acquire the home.
Don’t repeat the mistakes: We can’t deny the fact that we have made many mistakes while purchasing our first home. The mistakes may be wasting time, trusting a builder who didn’t have a good hold over the properties around the area etc. Ensure that mistakes are not repeated. That will save your time and maybe you find your second home sooner than the first one.
Moderate Climate: When people plan a second home, most probably they are planning to retire there. It is, therefore, important to do a close study of the weather and climatic conditions of that area. What if you are planning to go and have some good time with your family during winter to have some solace; however it is colder than your first home? Why do people visit hill stations during summers and why do people visit warm places during winters? It is a way to escape the extremity of a climate. Your second home should fulfill that purpose.
Money: When people buy second homes, they tend to forget to check the value of other properties in the area. That is due to too much excitement clouding the rational thinking ability of a person. Check the record of the property value of the area for the past few years. You will have a fair idea of whether to plan a second home there or not. After all, money is what matters when people invest in properties. No one wants to fathom losses.
These mistakes when avoided can fetch you a good house that will be more of your favorite home. A second home is visited by people not too often because they are busy in daily chores. Ensure that someone is hired to take care of the house so that when you visit the house during vacation, the house is clean and comfortable for you to spend days and months.
One more tip to be more cautious while buying a second home is not just relying on online portals but also after shortlisting paying an instant visit. This will help you plan ahead without wasting time.
A few also buy a second home for earning regular cash flow through renting it out. That doesn’t mean you buy any house. In the long run, it is you who will have it and not the tenants. It is your property. So, make a list of all the pros and cons of buying a second home. Most importantly, do know why you are buying it.