Are you ready to buy a second home? Here’s how to get started!

Purchasing a second home is often the first step toward fulfilling a dream. Maybe you’ve reached retirement age and hope to relocate to a sunny climate soon. Or maybe you want a second home for your growing family to gather on holidays and on the weekends.

Whether you are buying your second home as a family retreat, for a future primary residence or an investment, here are four ways to get you started.

1. Consider the location.
The National Association of Realtors found that 87 percent of second home purchasers intend to use the home for vacations or a family retreat. But research shows that if your second home is more than two hours away you won’t get there as often as you think you will. You might enjoy Florida’s sunny beaches, but if you live in New England, that’s an expensive plane ride or a long drive away to your second home.

2. Sleep In One.  You love the Catskill Mountains, but will you eventually get bored, tired of the back woods? Before buying a second home, try renting one in the area. Stay awhile. Talk to the locals and eat in the restaurants. This is especially important if you plan to eventually make the home your primary residence, as 31 percent of second home purchasers plan to do, according the NAR. Online sites like Airbnb are a good resource for finding vacation rentals. 

 3. Consider Rental Income. If you are buying a second home for an investment or a family getaway, or both, be realistic about how often you can rent the home and for how much. Look online for rental listings. Find a local real estate agent, or vacation rental company. And be sure you can rent it. Some communities or Homeowners Associations don’t allow vacation rentals.

4. Add up all costs. Vacation homes never take a vacation. Like most properties, second homes must be maintained. Budget for the cost of hiring a local property manager to maintain the home while you’re away.  Also consider the taxes, utilities, insurance you will have to pay.

Now is a great time to buy a second home. Interest rates are down, and the second home market is rebounding strongly. Give me a call at 860-435-9828  so I can help you finance your dream.

Susan Dickinson

Lakeville Branch Manager, Vice President

MLO# 532620

Author: Susan Dickinson

Susan joined Litchfield Bancorp in 2004 as a branch manager in the Lakeville Office. She has spent her career in banking with over 33 years of experience. In 2007, she was promoted to retail banking officer and attended Leadership Northwest, which is a 1-year program of the Northwest Connecticut’s Chamber of Commerce. In 2010 she was promoted to assistant vice president. She is a graduate of the Connecticut School of Finance and Management’s two-year program on banking theory, practices, and procedures. Susan donates countless hours to the local community. She became and is still the president of the Tri-State Chamber in 2009, which has a main goal of connecting commerce with community and doing what we can to help and support the local businesses. She was voted in as a director of the Salisbury Rotary Club in 2008 and in 2009 voted in as a director of the Salisbury Rotary Foundation; she currently holds the positions of treasurer for the Rotary Club and Foundation, “Service above self”. Susan was awarded the “Paul Harris” Fellow award on May14, 2013. Susan and her husband, Edward resides in Falls Village, CT. Susan also received a “leader in banking award” this past year, 2015.