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5 Things to Consider When Buying a Second Home

Central Washington’s Lake Chelan

Buying a second home is a major investment, and it’s something not to be taken lightly. There are a number of things prospective home buyers need to consider as they browse the listings for Lake Chelan homes for sale.

  1. Can you truly afford a second home?
  2. Taking on a second mortgage is a hefty financial proposition, and one that you should only consider if you’re in a secure position. Preferably, this is something you’ll do only after paying off your first mortgage, or, at the very least, after you have made a point of consistent, timely payments on your first mortgage so that you don’t shoot your credit rating in the foot.

    Lenders will often charge a fraction more for an active second mortgage, while banks are likely to be more stringent when they look into your ability to cover two mortgages with money to spare. Also, expect to pay a heftier down payment on a second home.

  3. Is this a vacation home or a rental property?
  4. Chelan WA real estate often comes with great views of the lake and the surrounding valley, making them ideal vacation homes or valuable rental properties. Turning your second home into a rental can provide valuable income, and can go a long way towards helping pay off your second mortgage. On the other hand, renting out your home will also come with its own responsibilities and legal obligations, which might not be your cup of tea.

  5. Have you considered the tax implications?
  6. Consider the tax implications of owning a second home, as well as any new dues you may owe if you turn the property into a rental. If you decide to live in it or use it as your own vacation getaway, the interest on your second mortgage is tax deductible. On the other hand, while you may turn your second home into a rental that can earn valuable income and deductions for operating costs, it’s an option that comes with tax responsibilities.

  7. Is this a fixer-upper or are you buying as is?
  8. Are you buying a home that you intend to fix, or one that’s move-in ready? An older home may come at a lower price, but homebuyers should be aware that unplanned expenses and renovation costs can balloon out of control.

  9. Will you get a local agent to represent you?
  10. It’s all about location, location, location, and there’s no better person to give you the lowdown on the community than a local real estate agent. Coldwell Banker Lake Chelan Properties Realtors can be a big help as you search for your second home. As a local agent, we can show you the best listings in the area and help you zero in on the properties that meet your needs. We’ll provide you with everything you need to know about neighborhoods, school districts, market prices, and the like to help you arrive at an informed buying decision.

Whether you’re looking for a second home, a vacation retreat, or a profitable rental property, Coldwell Banker Lake Chelan is ready to help. We have been helping people buy real estate in the Lake Chelan Valley in Central Washington since 1996. We understand that real estate is more than just a business transaction, it’s an essential part of creating a safe, happy, and prosperous life. Get in touch with Coldwell Banker Lake Chelan at 509.682.7777 or email Info(at)CBChelan(dotted)com to get started.