Purchasing a second home, whether it is in another area of the United States or outside of the country, can be appealing for many California residents. However, there are many long-term responsibilities that come with owning a second home. Buyers should consider some important factors before getting another home.
Buyers should be aware that as the owner of a second home, they will have to assume full financial responsibility for two homes. If their primary residence has a plumbing issue and the second home has an HVAC system that requires repair at the same time, they will be faced with two expensive bills. Also, there will be taxes, home insurance, utility bills, homeowner's association fees, lawn maintenance fees and more that will have to be paid for both homes.
Buyers should create a detailed budget that takes into account all of the expenses that they may have for both homes. Even if they determine that they will be able to handle the costs, they should not ignore their long-term financial goals. For example, they may want to consider whether they should use the money that would go toward the second home for their retirement savings instead. Other factors that should be considered include whether their current home is paid off, their credit card debt is resolved, there is a college fund for their children and there is cash set aside for emergencies.
An attorney who practices residential real estate law may guide clients through the process of buying or selling a primary or second home. The attorney may help with negotiating favorable purchasing terms, overseeing short sales and reviewing real estate agreements. Litigation might be used to resolve disputes regarding zoning laws, title issues, land development and the lack of disclosure regarding the condition of a real estate property.