Maybe you’re outgrowing your current home but don’t want to give it up, or you’re at a point in your career where you’re making plenty of money and want to start indulging a little more. No matter the reason, getting a second home can be tempting for many people. It allows you extra space and a different location to call home. However, owning additional property comes with maintenance costs and can quickly become prohibitively expensive, especially if you’re planning on taking out a mortgage to pay for it. While some situations may allow you to comfortably purchase a second home, others may require you to wait for a better time. If you’re not sure whether now is the right time for a second home, here are a few ways to know if you’re ready.
You Have Plenty of Disposable Income
One of the simplest ways to know if you’re in the position to purchase another house is the amount of disposable income you have each month. Disposable income means the money you have coming in that isn’t allocated to bills or fixed expenses and can go towards whatever you want. If you have more than enough cash coming in to cover your current bills and savings goals, you may be interested in putting some of that money into real estate.
Your Family Is Ready
While second properties may tempt many younger families, another good question to ask yourself is whether your family is ready to commit to another home. For example, if you have young children, consider whether the property is child-safe, will you have enough time and whether traveling there regularly to get your money’s worth is realistic. On the other hand, if you’re older and have grown kids who have already left the house, you may not be tied down as much by family obligations and may be freer to move around as you want.
It Fits Your Personality and Lifestyle
Finally, consider the property you want carefully before signing the dotted line. If you buy a place and then realize the location doesn’t quite fit your personality or the lifestyle you see yourself having, you may regret the decision. Ask yourself whether:
- You don’t mind additional home maintenance;
- The location is one you can see yourself spending lots of time in;
- You’re ready to commit and can see yourself happy with the decision years down the road.
If you’re considering purchasing a second home, it’s best to ensure that now is the right time to buy to avoid ending up in a financially precarious situation. As you start your search, keep these essential facts in mind and you can decide whether now is the moment to purchase your dream second home.