Buying a Second Home or Vacation Property? Read This First

Thinking about buying a second home or vacation property this summer? You’re not alone. Whether it’s a weekend getaway, a future retirement spot, or an investment property, second homes are more popular than ever. But before you dive in, there are a few key things to consider.

1. Be Clear on Your Goals
Ask yourself: What’s the primary purpose of this property?

• Personal use?

• Occasional rental?

• Long-term investment?

Your answer will impact everything—from financing to location to management.

2. Know the Costs (It’s More Than the Mortgage)
Beyond your mortgage, be prepared for:

• Property taxes (often higher for second homes)

• Insurance (especially if it’s in a flood or coastal zone)

• Utilities, repairs, HOA fees, and management if you won’t be local

• Travel expenses if you’ll be using it regularly

It’s important to have a full picture of monthly and annual expenses before making an offer.

3. Financing Can Be Different
Lenders view second homes differently than primary residences. You may need:

• A larger down payment (typically 10–20%)

• A strong credit score

• Proof of income and ability to cover both mortgages
  Also, interest rates for second homes may be slightly higher.

4. Consider the Rental Potential (If That’s Part of Your Plan)
Planning to rent it out when you’re not using it? Research:

• Local short-term rental laws or restrictions

• Seasonal demand and occupancy rates

• What type of property travelers are looking for in that area

If you’re buying primarily for income, think like an investor and run the numbers carefully.

5. Work with a Local Expert
Buying in a new city, mountain town, or beach community? Partnering with a local real estate agent is a must. They know the zoning laws, insurance risks, HOA rules, and market trends that could make or break your decision.