Galloway and Collens, PLLC
248-397-5507
248-397-5507

Factors to consider before buying a second home

While the economy is certainly not totally recovered, this might still be a good time for some Michigan residents to consider buying a second property. With low mortgage rates and plenty on the market to choose from, many people who can afford it are choosing to purchase a second home or vacation property.

While making such a purchase is certainly exciting, especially for those nearing retirement, it should also be taken just as seriously as the purchase of your primary home. Some buyers may be caught up in the excitement of an opportunity or a perceived bargain, but there are many other factors to consider when deciding to buy a new home.

• Is this really a good deal?

Some enthusiastic buyers may not take the time to assess the full costs of a given property if the sticker price is low. Experts suggest that buyers take some extra time to research the developers and previous owners to be sure that the property won't turn into a money pit for repairs. For potential condo purchases it is also important to look at factors such as occupancy rates, association fees and services provided. Tax implications can also significantly impact the value of a second property.

• How will I use this home?

You will want different things out of a weekend getaway, a seasonal home, or a rental property. Financing options may also differ based on this choice, and banks will generally offer lower rates and smaller down payments for owner-occupied properties.

• Am I doing this for profit?

Experts say that short term profiting is not realistic in today's market, so buyers of a second residential property should carefully consider how long they would like to own the home. If it's only for one or two years, it is probably impractical to expect a profit upon selling.

As in any real estate transaction, Michigan buyers should consult with an experienced real estate attorney before entering into a deal.

Source: ABA Journal, "Home School: Some Tips Before Buying that Second Residence," Susan A. Berson, May 1, 2012.

No Comments

Leave a comment
Comment Information
  • dbusiness - 2016 Top Lawyers
  • dbusiness - Top Lawyers
  • Lead Counsel Rated Attorney
  • Senior & Caregiver
  • American Appartment Owners Association - Member since 2015
  • Same Address
  • ICLE Contributor
Email Us For A Response

Contact Our Metro Detroit Attorneys

Our law firm is ready to help. Contact the real estate and estate planning attorneys at Galloway and Collens, PLLC, by calling 248-397-5507.

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

26075 Woodward Avenue Suite 200 Huntington Woods, MI 48070-1341 Toll Free: 888-349-0309 Phone: 248-397-5507 Fax: 248-545-2520 Huntington Woods Law Office Map