We all want to own a second home to use as a vacation residence, a potential retirement haven, or even as an investment property. It doesn't matter whether your idea of the perfect second home is on a piece of St. Petersburg FL real estate or a Puerto Vallarta villa, though, you have to make sure you can afford that second mortgage first.
Most real estate agents will tell you that the real estate crash hit some places a lot harder than others. If you look at the states most affected by the crash, you will see a common thread. Properties just are not moving in California, Florida, Nevada, or Hawaii. Notice anything similar in these locations? If you guessed that they are all sunny and warm, you guessed right. They are the perfect spot for people who want a second home. Unfortunately, the real estate crash and the subsequent recession meant that many people had to give up their second homes, often at a loss or even due to foreclosure.
We will get to what this might mean for those with homes in Kitchener Waterloo, investment properties, and other sources of income in a second, but first it's important to learn a lesson from those who did lose their second homes. Make sure that you can really afford that second mortgage payment first.
In order to find out if you can afford a second home, you first have to crunch your numbers and come up with a budget. After you pay for all of your regular needs, including your food, your current mortgage, savings, vehicle payments, and other monthly costs, how much do you have left over? Is it enough to be able to afford a second mortgage payment without money getting too tight?
If you think the answer is yes, start looking at areas where you would like to invest in a second home. Real estate for sale that is considered second home material is easy to find, as it is in St. Petersburg, and those prices will start to give you an idea about what kind of home you can afford. Remember as you look that you are only purchasing a second home, it does not have to be huge and fancy. It might be that you can find a home with even less mortgage each month than you had originally planned on.
Finally, keep in mind that whether you purchase on Ashbridges Bay or in St. Petersburg, the key word in the whole situation is invest. You want to purchase in an area that trends upward or has that potential when you buy a second home. That way, if there comes a time where you do want or have to sell, you will be able to offload at a profit. Good luck in your search!
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