If you’re like many people, you’re thinking about buying a second home for sale in Scottsdale. But how do you know if you’re ready to buy a second home, and what will you do with it when you’re not actively living in it?
Are You Ready to Buy a Second Home?
Maybe you’ve paid off the mortgage on your first home, or you’re pretty close; maybe you’re thinking about finding a home in your favorite vacation spot because during the rest of the year, you live somewhere cold.
Those are both great signs that you’re ready to buy a second home, and Scottsdale is a spectacular community – but you also need to consider a couple of other things, like whether you’re ready to make that type of commitment, what kind of financial impact a second home will have on you, and whether it’s actually worth the money.
Committing to a Second Home
Like a primary residence, a second home is a huge commitment. If you’re not 100 percent positive on location, amenities you want and the type of house you would prefer, it might be better to rent a vacation home for a couple of years before you dive in with both feet. The last thing you want is to buy and then realize that you should’ve bought something else – even on the other side of town.
Financial Impact of a Second Home
Chances are pretty good that if you’re considering buying a second home, you have enough disposable income to make the mortgage payments. However, you’ll also have to think about things like HOA dues, property taxes and insurance; the same ongoing financial commitments you have with your primary home apply to a second home, as well. It’s also a good idea to talk to your tax adviser to find out how owning a second home will affect what you owe at the end of each year.
Is a Second Home Worth It?
How often will you use your vacation home? If you’re going to be there frequently, it might be (especially when you add in the pride-in-ownership factor). However, if you only vacation for a few weeks a year, you may end up saving a lot of cash by renting while you’re in town. The exception is if you’re planning to eventually turn your vacation home into the place where you’ll retire.
What Would You Do With a Vacation Home When You’re Not Living in It?
Many people choose to rent out vacation homes when they’re not in town, but that’s not always a good choice. What if you want a spur-of-the-moment getaway, and what happens if the people who rent your house – whether it’s a longer-term rental or an AirBNB situation – do something that makes it uninhabitable? You could leave it vacant, but that means there’s nobody there keeping an eye on things; in that situation, hiring someone to check periodically is a good idea.
