Your Guide to Buying a Second Home

Your Guide to Buying a Second HomeIt’s all anyone has been talking about lately: how great the housing market is. With interest rates low and plenty of opportunity on the rise, now is a great time to invest in the second home you’ve been eyeing. But, before jumping into a second mortgage, take the following considerations into account. In order to protect your luxury home, secure a Clifton High-Value Homeowners Insurance policy to give you the protection and coverage limits you require.

Scout your options.

In an exclusive community, you need the help of a real estate agent to give you the scoop. They can show you comparable homes, determine what a fair price is, and inform you about all of the regulations and fees involved with owning a home in that specific community. Bankrate states that an agent, with an eye to the long-term value of the property, could fill you in on historical prices and how comparable sales have fared, as well as resale prospects. Factors that tend to have a positive impact are proximity to a major metropolitan area, ease of access and availability of four-season amenities.

Think about the insurance concerns…

If you buy a home in a disaster-prone area, it may be more difficult to insure. Similarly, if you are not present at the home for the majority of the year, insurance carriers may view that as a liability. Therefore, weigh your options with how much you plan on living in your new home and the additional policies you need to obtain to be sure it’s secured year-round. Next, speak with your local insurance professional to get the best deal available.

Tax considerations.

If you plan on renting your home for more than 14 days per year, you will need to report that additional income to the IRS. If not, you may be eligible to receive tax credits based off of the mortgage payments of your second home.

At Tri-State Insurance Agency, we are committed to protecting homeowners against the broad spectrum of perils they face. Whether it is your full-time residence or vacation spot, our high-value homeowner’s insurance is custom written to meet your specific needs and offers higher coverage limits and inclusions that traditional policies. For more information, contact us today at (888) 990-0526.