Many people buy a second home for a place to stay on vacation, to offer to relatives as a getaway, or as a source of rental income. However, as with any real estate endeavor, there are some specific things to think about when it comes to investing in a second home.
Here are some things to consider if you are purchasing a vacation home in South Carolina, or are a South Carolina resident buying a second home in another state.
It is essential to consider your finances before purchasing a second home. Some things to ask yourself include whether property values are likely to increase in the area where you are looking, and whether or not you will need the property to generate money to break even. If you feel the amount of time you would spend at the property is not worth the cost, look at other options such as a short-term rental.
Due to the fact that second homes are generally unoccupied more often than primary residences, insurance on these properties tends to be higher. If you are renting your home out, you might need an even larger insurance policy. Consider whether you not this is something you can afford.
Even when a home lies unoccupied, maintenance issues can still arise. Have a plan in place for someone to mow the lawn and tend to the property should you have a burst pipe, fire, or another unfortunate issue.
Consider all the factors involved before purchasing a second home so you can save yourself time and money in the future.