Posted on: 23rd Jul, 2013 01:12 am
I want to buy a vacation property and want to rent it out. What are the most important things that I will have to consider when purchasing a second home?
When you are dealing with an investment property or second property, you may have to provide a higher down payment – may be 30%. You will also have to update yourself about the impact of an investment property on your taxes and income. Also, there will always remain the issue of getting good renters.
Welcome Jollly,
You should first check out your affordability in this regard. You should note that unless you have the means to afford the property, this can be turn out to be a difficult investment for you in the long run.
You should first check out your affordability in this regard. You should note that unless you have the means to afford the property, this can be turn out to be a difficult investment for you in the long run.
I too think that you should check your affordability before you buy a second home as such mortgage loans usually carry high interest rates. If you don't do this, this might have a bad impact on your finances in the long run.