Buying your first home may be one of the scariest things a person can do, and although you'd think getting your second home would be easier- it can be just as stressful. If you're ready for buying your second home and aren't sure where to start, here are some tips to make the big ordeal easier.
Tips For Buying Your Second Home
1. Be Debt Free Before You Buy
Having any debt, when you're looking at buying a home, can put a hold on buying. If that debt is a mortgage on your first home, then it can kill your goals to own home faster than anything else. Most people sell their first homes before they buy their second, but if you're keeping your first home to rent it out to be, your payments can get complicated.
If you have to have debt going into your second home, make sure that it’s manageable. Renting out your first home can help this, but so can going for a place that has a price under your budget. Instead of putting yourself into another massive amount of debt, consider if you need both homes. Selling your first one can make the second one far more affordable.
2. Consider Changes You Want From Your Current Home
The good thing about owning a home is that you can see the changes you want. If you've noticed anything in your first home that you didn't like, make sure that your next home doesn't have these same problems. Please take what you learned from your first home and apply it to the next.
If you hated walking downstairs to do laundry or got annoyed with your tiny closets, don't buy another home with those same changes.
Although it might just sound like a wishlist of things you’d like– your home really should fill most of your wishes. This home is the place you're going to spend most of your time. Make sure that it's somewhere that you'll want to be.
3. Consider Your Finances In The Long-Term
This idea is a prominent place to go when plotting out the steps to buy a house. Take the time to plan out the next ten years of your life. You don't have to stick to this plan flawlessly, it's almost impossible to know how everything will turn out, but use it as a guide. Babies, marriages, and job changes can affect your finances until they're almost unrecognizable.
Nobody can plan for the future perfectly, but give your budget wiggle room for savings and emergency spending. Don't give yourself too much extra space and leave room on unneeded expenditures- but be smart with your money. Failing your budgets could mean losing your home, which is devastating for anyone.
Buying your second home can seem stressful, especially if you still own your first home, but take the time to plan and budget wisely. This second home could be the home you live the rest of your life in, make sure it's a place that you'll be happy to live.