Thinking about buying a second home along the Jersey Shore? Whether you are looking for a home to getaway and relax or an investment property, here are five questions to ask yourself before buying that second home.
- Does it make financial sense? No matter if you are an investor or just looking to purchase a vacation home, you have to first determine if it is a smart move financially. Look beyond just the purchase price and determine what ongoing expenses you will incur. Consider that you will not be living in the home on a daily basis and you may need to hire a project management company.
- Where and what type of home? Buying a second home in a bad location will not help you in the long run. If you can’t resell it or rent it out it then it’s probably in the wrong location. The Jersey Shore continues to be a top place for vacationers, and properties continue to have strong resale value.
- What are the tax issues? As a second home owner, you need to figure in the cost of property taxes in your budget, and if you plan to rent the home out you need to know your local tax rate.
- Have you considered alternative financing? If you are finding that you are unable to secure a loan through traditional methods, consider alternative financing. Save money by finding a partner to purchase the property with you. If you do partner with someone to purchase a second home, put in place an agreement that clearly states how future ongoing costs will be split.
- Do you have what it takes to be a landlord? If you are looking to purchase a second home as an investment keep in mind that it usually takes a few years to turn a profit. Some second home owners choose to rent their property out on a short term basis to help offset costs. No matter what you choose to do, make sure you are prepared to be a landlord. Don’t go in blind; be prepared to deal with management companies, repairs that are needed, and even legal issues.
If buying a second home on the Jersey Shore is something you are considering, we’d be delighted to take the time to show you potential homes and to answer any questions you may have about owning a second home. Our job is to make your tomorrow better than today. Contact us today via email or give us a call at 609-264-6762.