Dreaming of a Second Home

Is this something that you have ever thought about? Its true that in recent years many homeowners have struggled to maintain and hold on to their homes. And some have bought second homes in vacation areas that now wish they hadn't. Because of this reason, Real Estate inventory is at a high, and there are good deals out there. What does this mean for you? If this is an idea that you have been pondering, and with a combination of low prices, historically low rates, and the availability of homes, now many be the perfect time to make this dream a reality. Lets consider a few ways that it can be made to work:
1) Conventional Financing: Really the purchase of and financing of a second home is really no different from the purchase of a primary home. Some of the programs that offer little to no money down are not available with conventional financing. However, with conventional financing,  Fannie/Freddie type loans offer as little as 10% down you can get your foot in the door.

2) CASH : Remember the saying "cash talks"? Cash buyers are desirable to sellers, as paying cash eliminates the usual financing contingencies.  It can also shorten the time from offer to purchase. Something to remember though when paying cash: Re-sale time can present a limited pool for prospects if conventional financing is unavailable.

3) Rental Income: This is an area that you must proceed with great caution! Whether you are an investor and looking to supplement your income every month, or looking for a vacation rental, make sure that you are in a location where rentals are in demand. Don't just buy a home if your entirely dependent on the income to make it work.

4)  Tax Benefits and Appreciation: This is another area you need to be cautious of the rules, eligibility and markets are always changing. But owning a second home can extend or even put you over the threshold for the benefits of deducting interest and taxes on your return. ALWAYS check with your CPA or tax pro or attorney to see how this may or may not effect you. 

So if you think that you are in a position for second home ownership and are ready to find out more, please contact me. I will be happy to help you find the best way for you to reach you goal.