For many people, the purchase of their first home is one of the biggest life events. Therefore, the purchase of a second home is a luxury. The benefit of buying your first second home is that you'll already have a lot of experience from the purchase of your primary home that you can use. As a result, tackling the purchase of a second home will be easier, though you’ll still have to exercise due diligence. Here are some very useful tips that will make it easier when you purchase your first second home and make a Vancouver real estate decision.
Make Sure It's the Correct Time to BuyAs with your first home, you have to decide if the time is right to buy. So how do you do this? You should first decide on the purpose of your second home. Is it going to be a vacation home, a start on a retirement home, or just a retreat that's within driving distance? When you get these questions sorted out, you'll be in a better position to buy. Also, be sure to check out the affordability of the property you're looking at. That said, do some research and scope out areas that have proven appreciation rates. Think of your second home as an investment as opposed to a real home.
Understand What to Seek Out in a Second HomeSometimes, you won't be able to tell what you really want until you test things out. If you have your eyes set on a second home, but still aren't sure, it's highly advisable to first rent the property for a short period of time. This will let you determine if you actually like living there and consider factors like the traveling time and the neighbourhood itself. While there, it's also recommended to talk to the locals (neighbours, etc.) to find out what they enjoy about the area and what, if anything, has changed over the years.
Look at All of Your Financing OptionsBuying a second home is like buying a first home in that it's common practice to put down about 20%. This lets you elude the costs of mortgage insurance. In addition, it's a great idea to always get into negotiations with the seller, since second-home sellers have a reputation for being more flexible than those selling a primary home. One tactic to help the purchase along could be the seller requesting special terms of you. For example, a seller may be willing to carry the second mortgage for between three and five years.
These tips will make it much easier to purchase your first second home. You can fall back on what you learned during your first home purchase. To increase your chances of a successful purchase, be sure to know what you are looking for in a second home. Make sure that the time is right for your situation before you make the purchase. If you have to talk to locals to get a better feel, then do so. Don't be afraid to explore all your financing options thoroughly, too.