How often do you travel to Florida? It might be cost-effective to purchase a home in the area if it is more than once a year. You would save money on accommodations. Plus, it would also give you an investment that you can rent out or sell later for a profit. It makes even more financial sense if you live in a different state and go to Florida for the winter. There are some important tips to consider, however, before buying a second home in Florida.
You should carefully pick the area. This is very important and each area varies drastically. What is best for you with your wants and needs? Do you want to live in a quiet neighborhood? Or is one that is more action-packed be a better fit?
You may think you want to avoid touristy areas. However, it would be a good idea to consider popular tourist locations since it will increase the value of your home when renting it out. Put your priorities in order, carefully weighing all the option of buying a second home, to make the right decision.
When you’re buying a second home in Florida, you need to look for it during the winter. It will give you a good idea as to what you are getting. It will also show you what it will be like when you are living there. The best time to look for a good representation of the area is during the winter peak between December and February.
Before you invest in a property, consider renting a home in the area for the winter. This way you can determine if you really do, in fact, want to spend all of your winters there. This is a great way to try it before buying a second home.
It can be easy to get carried away buying a second home. However, do not forget about all of the extra annual expenses you would be signing up for. Try to make an accurate estimate by going over all potential expenses. Then, you can decide if it’s the best financial decision for you.
Additional expenses include:
You should know that second homes tend to have more complicated property taxes. Plus, property taxes tend to be higher on second homes in Florida compared to primary residences.
Keep detailed records for all of your homes. This way you can avoid overpaying on taxes. Your taxes can be impacted by renting out your home and making improvements to it. A professional tax preparer will be your best friend by keeping on top of your taxes. They will help make sure you have earned all of the credits and breaks you deserve.
Get a Bank Pre-Approval Before Searching for a Second Home in Florida
Get pre-approved on a mortgage before beginning a search for your new home. It will give you more leverage when making an offer on a home. It will also give you a budget that you can work within.
To get approved on a second mortgage, you need to have:
Lenders will look at you very carefully since you’ll another mortgage on their record.
We’d love to help you if you’re looking for information about buying a second home in Florida. Feel free to call today so you can start enjoying a warm Florida winter.