Do you think you might want to buy a second house to go along with the one that you already own?

It’s not the worst idea in the world! More than 7 million Americans own a second home, with many of them using their second homes as vacation or rental properties.

A large percentage of these second homes are located in Florida. But many people also buy second houses in Arizona, California, Massachusetts, and New York.

Before you start looking around for a second house, though, you’re going to want to make sure you’re in a good position to do it. You’re also going to want to keep a few tips in mind when you start your househunting search.

Here are six tips that you can use when you’re shopping around for second homes, either in your area or in another state.

Begin by Thinking About Why You Want to Buy a Second Home

The first thing you should do when you’re considering buying a second house is sit down and think about why you want to do it. Is it because you:

• Are on the brink of retiring and want to buy a home that you’ll eventually move to for good?
• Want someplace where you and your family can spend long weekends and vacations?
• Have extra money that you want to invest wisely?

You should not simply buy a second home on a whim because it sounds like a fun thing to do. You should have a great reason for wanting to do it.

Buying a second home will, in all likelihood, have at least a little bit of an impact on your financial situation. You want to be sure that buying the home will be worth it.

Consider Whether or Not You Can Afford to Do It

If you decide that you do, in fact, have a good reason for wanting to buy a second home, the next order of business will be to see if you can actually afford it.

If you have a small fortune saved up in the bank and can buy the home outright, that’s great. But if you’re going to have to take out a mortgage to buy it, you’ll need to crunch the numbers to be sure you can afford to take on an additional mortgage at this time.

Remember that you’ll need to pay more than just the mortgage when you buy a second home, too. You’ll also have to pay for:

• Property taxes
• Homeowners insurance
• Maintenance and repairs
• Furnishings
• HOA fees

It’s easy to get in over your head when you’re buying a second home. You might think that you can afford it, but after running the numbers, your calculator might suggest otherwise.

Make Sure You’ll Be Able to Qualify for a Mortgage

If you didn’t have any trouble qualifying for your current mortgage, you might think qualifying for a mortgage for a second home will be a breeze. But this isn’t always the case.

Lenders may require you to put down a 20% downpayment on a second home, which is something that they don’t always require when people are purchasing a primary home. You might also have to make sure you don’t have too much debt since that could be a red flag for lenders.

It’s smart to sit down with someone from a mortgage company before you fall in love with a second house. They can let you know how likely you are to be approved for another mortgage.

Look for a Second Home in the Right Area

When you have a second home, there’s always a chance that you might have to sell it at a moment’s notice. If you run into financial trouble at any point, your second home might be the first thing to go.

Therefore, you should try to find a home located in a desirable area. An up-and-coming area would be ideal since you can sit back and watch your home gain value over the years and rake in a profit on it if you ever have to sell it.

Do your homework and find the right area to buy a second home in. It’ll take some effort on your part, but it’ll be well worth it in the end.

See How Much It’ll Cost to Get to Your Second Home

If your second house is only an hour or two away, you don’t have to worry about spending a bunch of money to get to it. But if it’s located in a place that’s going to call for you to fly when you go to it, try to gauge how much flights will cost you.

You don’t want to end up in a position where you’re spending thousands or even tens of thousands of dollars on airfare every year to get to your second home. That could make the home a bad investment on your part.

Think About Using Your Second Home to Generate Income

One of the best parts about owning a second house is that you can use it to generate extra income every month. It might even pay for itself if you turn it into a rental property that is always rented out.

If your plan is to rent it, research rental rates in the areas where you’re looking at homes. You want your second house to bring in as much money as it can.

Start Looking for a Second House Today

As long as you pick the right home, buying a second house can be very beneficial to you and your family.

It can give you all a place to go on vacation. It can also go up in value over time and earn you a nice return on your initial investment. And it can even be used as a rental property if you want, which will give you an additional income stream.

Would you like to see how to use a rental property to generate income? Browse our blog to find out exactly how it’s done.

Are you looking to move abroad?

You’re not alone. An increasing number of Americans are leaving the country to work, study, be closer with their loved ones, and experience new cultures. Others are packing their bags because they’re dissatisfied with the country’s politics and governance.

However, regardless of your reasons for relocating, moving and living abroad can present a number of financial challenges. Moving costs can be high, and if you’re not financially stable or you lose your job, you could quickly find yourself in debt.

The good news? We’re here to help.

Continue reading to learn how to manage your debt when moving abroad.

Make a Sound Financial Plan Before Moving

Planning is the key to success in anything, especially where money is involved.

Long before you move abroad, develop a financial plan. Start by researching the cost of living in the country you want to relocate to, and then create an “abroad fund.” This is the money you will need to maintain your quality of life during the entire period of your stay.

If you’re relocating and for work and will be earning a salary, you might not need to save as much money as a student or someone who’s moving for adventure. Just ensure your new role comes with sufficient job security, so you’re not left stranded should your employer fire you abruptly, or should the company collapse.

Keep an Eye on Relocating Costs

The cost of moving can take a toll on your finances, especially if you’re moving to Europe, Australia, or other far-flung areas. You’ll have to hire a mover to pack your belongings and ship them to your destination country. You might also need to hire a local real estate agent to help you find a house in the host country.

This is why you need to keep an eye on relocating costs. Shop around for international movers so you can find one who offers good rates. However, don’t hire the cheapest provider if their services aren’t reliable. A bad mover can really put a damper on your relocation experience.

Another way to save money on these costs is to go with fewer belongings. It could be cheaper to buy new items once you arrive in your new country than it’s to move with them.

Know Where to Get Financial Help

If you get into a financial bind once you move abroad, it’s vital to know where to get help.

This means researching the country’s lending system and knowing who the best lenders are. Bear in mind, though, that you might need to build a new credit history to be able to get a loan from formal lenders. You can do this by opening a secured credit card.

If by any chance you’re moving to Spain, you can get help here.

Make Good Financial Decisions When Moving Abroad

Moving abroad costs money.

If you’re not careful, you can easily find yourself in deep financial problems. To avoid this, it helps to make good financial plans before moving and sticking to those plans once you move. And if you get into financial emergencies, always know where to get help.

Good luck and keep reading our blog for more financial tips.

Did you know that back in 2017, more than 1.3 million fires occurred in the United States? Or that at least 41 million people in the country are at risk of flooding from rivers and streams?

No wonder property damage is the biggest reason for homeowner’s insurance claims! In fact, in 2017, 98.1% of all these claims were for property damage caused by disasters like fires and flooding.

If you’re now part of this growing statistics, your insurance company isn’t the only one you need to call ASAP. You also need to contact a restoration company that can save your home from further damage.

But with so many contractors out there, how can you make certain you hire only the best?

For starters, you need to ask the right questions.

Ready to learn what these questions are? Keep reading to better prepare yourself once you start phoning these service providers!

1. Do You Have Up-to-Date State and Local Licenses?

In most states, companies providing restoration services require a contractor’s license. These service providers are also often required to be in the state or local registry.

For one, because licensure protects consumers from harm and fraud. It’s an assurance that the company is actually legit and existent. As such, you’ll know where exactly to find them in case a legal issue arises.

It’s also best to stick to a bonded restoration contractor. Being bonded gives you extra protection in case a contractor fails to fulfill its duties. If they breach any part of your contract, their bond will kick in to compensate you, the client.

2. What Types of Insurance Coverage Do You Carry?

Choose only a restoration company that has general liability and worker’s comp insurance. In fact, these are legal requirements for almost all employers in the United States.

Liability insurance protects your home if the restoration team causes damage to it. The coverage will kick in to cover and compensate you, the homeowner, in case of these accidents.

If a technician sustains injuries while working on your home, you won’t be liable for the accident. Their worker’s compensation coverage should shoulder their medical and hospital bills.

Note that in the U.S., a workplace injury occurs every seven seconds. The last thing you want is for this to happen to a tech working at your home or office. Accidents can still happen though, so it’s best to make sure the techs have worker’s comp.

3. Do You Have Accreditation for Environmental Infection Control Remediation?

Some restoration projects may require Infection Control Risk Assessment-certified technicians. You may need these experts in case sewage or contaminated water flooded your home. Another example is the project involves handling asbestos or other toxic materials.

The thing is, not all restoration companies hold such accreditation. So, be sure to ask about this when you consult a contractor. You can learn more about ICRA-certified techs at Surfco Restoration & Construction LLC.

4. Do You Provide Free Restoration Project Estimates?

Only the best restoration contractors provide these estimates. They also put it in writing to ensure their clients feel at ease.

5. How Soon Can You Come and Restore My Home or Office?

Keep in mind that the longer water remains inside a building, the faster molds will grow and spread. Fire-related damage, such as soot and odors, can also spread to your other valuables. In short, the longer the delay is in restoration, the greater the damage can become.

That’s why the top restoration companies operate 24 hours, seven days a week. They also work fast, restoring your home within the least possible time.

Save Your Home by Getting it Restored ASAP

There you have it, the most important questions to ask a restoration company. But what’s even more important is to call them and set a schedule for the project ASAP. The sooner they can complete restoring your home, the sooner you can live in it again.

Ready for more tips and tricks that can make your home even more livable and comfortable? Then be sure to bookmark our site’s Blog page!