Coming to the decision to purchase a second home is a big one and we’re happy to hear you’re thinking about taking the plunge! Having a second home to vacation to away from the bustle of city activity can be a lifesaver, especially in these times. If you’re looking seriously into buying a second home for you and your family to enjoy, here’s what to keep in mind.
Whether it’s a cottage in the mountains or a perfect lakeside bungalow, investing in a second home is a great way to build more equity while also enjoying yourself. Be sure to pick somewhere you’ll actually enjoy living part-time, not just because the prices are good. And whatever you do, don’t plunge into anything without properly doing your research. You want to really know the property before you decide to finance it! Discover the neighbourhood, meet the locals and have a thorough property inspection done so you know every detail.
It isn’t uncommon that folks will forget about the costs of insurance when looking into purchasing a second home. Always ask for insurance quotes as part of your research on the home and understand the insurance needs of the property depending on its location. For example, a lake house will need flooding insurance where a mountainside cabin probably won’t.
Another aspect that can be overlooked is the actual upkeep of a second property and what that costs. You’ll have a second set of bills to look after every month and it might be smart to put a little money aside for possible emergencies, like a burst pipe. Consider how easy it would be to winter down your second home or if perhaps you’d consider renting. Renting is another story entirely, but it can really help with utility costs if it’s something you’re interested in.
If you own a home already, you likely have a mortgage. What’s nice about a mortgage is you can refinance it and then use that money as a down payment on your second property. There’s also the option of taking out a second mortgage and some banks will offer up to 85% for you to borrow, even discounting the amount you owe on the original loan. However you decide to finance your second home, make sure you understand and read the fine print of any mortgage agreement!
Wanting a second home is becoming more and more popular as we look for new ways to escape from the hectic bustle of a work-life. It’s no surprise that a lot of Albertans are turning to recreational properties as a way to escape. If you’re thinking about purchasing a second home, why not check out what lots we have available? Gleniffer Lake and Paradise Reality always have something beautiful to show off!