Despite 2020 being a difficult year for many, low interest rates and working from home have caused some people to make a change in their primary residence or consider purchasing a rental or vacation property. If you’re thinking about doing the same, first determine how the home will be primarily used—will it be a rental house or an owner’s retreat? Next, it’s critical to make realistic decisions about your budget when considering buying another property. The last thing you want is to end up with a house you cannot afford.
Right now is an excellent opportunity to take advantage of the historically low interest rates. However, achieving the best rates for a rental or second property can be tricky. Most lenders charge slightly higher rates for these types of houses, but overall the rates are still very low.
“The last thing you want is to end up with a house you cannot afford.”
If you’ll be buying a rental property, here are some questions to think over: How much can you bring in monthly? Will the rent cover the mortgage, taxes, insurance, and HOA fees? Will you use a property management company? If so, what services do they provide, and what are the costs? What’s their policy on the owner using the house?
If your new property is to be a second home for you, there are a few guidelines you must follow. You must live in the house for some part of the year, and it cannot be in a rental property management agreement, timeshare, or anything along those lines. Other restrictions may also apply.
No matter which type of property you’re considering, it’s crucial to work with a real estate agent who has your best interests in mind. Our team would be glad to guide you through this process.
Please reach out via phone at (281) 347-2200 or email us with any questions you may have about buying a second house or real estate in general. We would love to be your real estate resource.
