3 Helpful Tips for Second Home Buyers
When shopping for a second home at the Lake of the Ozarks, take your time and weigh the pros and cons of every place. In this blog, I will discuss three helpful tips when buying a second home; knowing what to look for, the right time to buy, and determining if it's worth the money.
Socialize with the locals. You may have visited the area for years, but getting a local perspective can be very helpful.
Visit the Lake of the Ozarks during each season. Try out restaurants, shop at the grocery stores, and check out the public school system. Even if you aren't considering having kids or sending your kids to school there, homes located in a great school district have more value.
Look at other home sales in the community. Examine what the track record is on resale values of similar properties.
If you plan to rent the property you are buying, do your research. Some communities ban weekly rentals, only allowing monthly rentals.
Consider the market conditions and affordability of the property. Look at buying a second home as an investment and consider an area where it will appreciate.
Compare mortgage amounts, loan standards and rates. Typically, loan standards and rates for primary and secondary homes are practically identical, unless the lender considers the house an investment property. If so, this could possibly increase the interest rate up 1.5 to 2 percentage points. Usually, interest on a mortgage for a second home is deductible from federal income taxes. Just note, that if you borrow from the equity of your first home to make a down payment on the second home, you most likely can only write off interest on the first $100,000 of equity debt.
Not only have I been a realtor since 2003, but I have also owned 2 homes at once. I used to live in Quincy, IL and then bought a home at the Lake of the Ozarks and owned both for about a year, before I decided to follow my passion and move to the Lake of the Ozarks full time. I am happy to guide you through this process and show you properties that will fulfill your dreams, as I am living mine here at the Lake of the Ozarks, finding clients their dream homes.
Know what to look for when buying a second home.
Research the area first, especially if you are buying a vacation home. Consider renting a place near the home you are looking at and getting a feel for the area. Make sure you like the area first, before you invest in real estate there.Socialize with the locals. You may have visited the area for years, but getting a local perspective can be very helpful.
Visit the Lake of the Ozarks during each season. Try out restaurants, shop at the grocery stores, and check out the public school system. Even if you aren't considering having kids or sending your kids to school there, homes located in a great school district have more value.
Look at other home sales in the community. Examine what the track record is on resale values of similar properties.
If you plan to rent the property you are buying, do your research. Some communities ban weekly rentals, only allowing monthly rentals.
Know if it is the right time to buy.
Assess your goals and determine what you are looking for. Are you searching for a family vacation spot or somewhere to retire?Consider the market conditions and affordability of the property. Look at buying a second home as an investment and consider an area where it will appreciate.
Consider if it's worth the money.
Compare mortgage amounts, loan standards and rates. Typically, loan standards and rates for primary and secondary homes are practically identical, unless the lender considers the house an investment property. If so, this could possibly increase the interest rate up 1.5 to 2 percentage points. Usually, interest on a mortgage for a second home is deductible from federal income taxes. Just note, that if you borrow from the equity of your first home to make a down payment on the second home, you most likely can only write off interest on the first $100,000 of equity debt.
Not only have I been a realtor since 2003, but I have also owned 2 homes at once. I used to live in Quincy, IL and then bought a home at the Lake of the Ozarks and owned both for about a year, before I decided to follow my passion and move to the Lake of the Ozarks full time. I am happy to guide you through this process and show you properties that will fulfill your dreams, as I am living mine here at the Lake of the Ozarks, finding clients their dream homes.
Judi Cloyd, Pinnacle Real Estate Partners
5780 Osage Beach Pkwy Ste 112
Osage Beach, MO 65065
Mon-Fri 8:00-5:00
Weekends by Appointment
573-480-7376 : Judi@JudiAtTheLake.com
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