Purchasing a second home can be a big step. Whether seeking a cabin in the woods, a getaway beach home or modern condo in the city, buying another property is a big decision. Here's how to know if now is the time to buy.
Assessment of personal finances is critical in determining whether to purchase a second home. Beyond the cost of a second mortgage are other financial issues such as what interest is charged on a second mortgage. It may also depend if the home will be rented out as lenders consider rental properties a higher risk than those listed as primary residences. Other factors may include:
Ongoing costs such as utilities (water, electric, gas, trash removal, etc)
Unexpected maintenance charges such as landscaping
Cost to hire a property manage to check on the property while away
Having a property by the beach may sound great but it may not be a great investment. Some things to consider include:
Ability to visit the second home as often as desired
If not used as a rental, will home get used enough to make it worth the investment
Decide where is the ideal location before buying and whether it is affordable versus the time that will be spent using the property before purchase
Chat with the insurance company to see what is next after finding the general area in which to buy a second home. Begin by speaking with the current insurer with whom a relationship is already established. A better rate may be available for multiple lines (existing home, cars, etc). Better rates may not necessarily be more inexpensive. If potential new property is prone to flooding, insurance rates may be higher. Homes with swimming pools also have higher rates as do pools with no fence or gate which may not have coverage available at all.
After all possible expenses are accounted for and a neighborhood is identified, contact a real estate agent to get started. Once settled, soak in the benefits of the new home. A vacation in the comfort of one's own home is a true luxury. When time is spent with family and friends in the new home, the cost savings will become apparent compared to vacation rentals. Privacy and no crowds (like in hotels) are another added bonus of having one's own property. Financial benefits may exist in the long term even if the property is not rented out. Tax benefits may help lessen the financial burden. A vacation home is a space to unwind, relax and enjoy time with loved ones. Soak it in and enjoy the new home.
Get more advice on the steps that you need to take to owning a second home.
Contact one of our agents today.
Finding the perfect home can take some time but the market is growing and sale prices are still low. Doing research is key prior to finding Indian Lake Ohio homes for sale which suit the family's needs. Follow these tips to find a home that's a good fit.
Search for a home that will be in the family at least five to seven years (ideally). Time, effort and expense are considerations when moving including closing costs. Staying in a home longer helps avoid added expense and stress. The extra time put into the home, as well as any work completed within the home, can help add value long term and avoid any downturns in the real estate market.
Family's needs change over time whether it's additions (babies, returning older children). Seek out properties with potential for growth and provide room for expansion. Houses for sale in Indian Lake, Ohio are a perfect example of properties which offer lots of room to grow at an affordable price.
Homes with lots of options usually suit a family's needs better than ones which are less flexible. A home that is functional for years to come with an open floor plan style can be adapted to changes while a kitchen with a view of a living area is great for keeping an eye on young kids as well as entertaining family and friends.
To find the perfect home requires knowing what best suits one's personal style. Homes are not one size fits all. There are many styles including condos, houses, townhomes. A person who does not want the responsibility of upkeep for a home may want a townhome versus a single family residential house. Likewise, a family who would like a vacation style home in a resort community with amenities may prefer to search for houses for sale in Indian Lake, Ohio which has many great features of a small community with access to waterfront dining, activities year round and plenty of suitable properties for families of shapes and sizes.
A home's location is one of the most important aspects of buying real estate. Families who desire a quiet neighborhood in which to raise kids may not be looking for homes near a busy street or in the middle of an urban city environment. While that may suit a single person or couple, once children arrive, many families seek the peace, tranquility and safety of a suburban neighborhood which offers community, friendly neighbors and access to great schools while still being near to an entertainment district and work. A home's location with a spectacular view also attracts friends and family to come visit which is many families choose houses for sale on a lake or by water.
Choice Properties has agents ready to help you find the perfect home by the lake. Contact us today at 937-842-2244 to set up an appointment!
Get more advice on finding the perfect Indian Lake home for your budget.
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Waterfront investment properties require special consideration to ensure the property will suit the lifestyle and provide activities everyone can enjoy. Start with these tips when looking to purchase cheap waterfront property.
When potential homeowners research waterfront investment properties, the first step is to discern how the property will be used. From this point, a realtor can help figure out which area best suits these needs and desires to focus in on specific properties. Some strategies to get started include:
Learn about real estate. Get books, take a class or two and do research. Ask lots of questions, talk to friends, family and other relatives to learn as much as possible about investing in waterfront property.
Commit to the process. It takes time to research, find and purchase that perfect property. Some will fall through or not be a good match but know what to look for and what needs exist to know the right property when it comes available.
Have a strategy. Focus on achievable goals and know what the property is intended for. If it will be a rental for part of the year and vacation home for the rest, this may determine which property is ultimately selected.
When searching for cheap waterfront property, it is important to look at the activities available, nearby hospitals for any medical needs which should arise, proximity to an airport if frequent travel is important and finding the best property to suit the family's needs and budget. Knowing how often the property will be used can determine suitable options.
Location is key when searching for waterfront investment properties. After determining best fit for needs in a waterfront home, visiting the area to find a good fit is important. The surrounding community is an important factor when making a decision. Look over the property as well as the house as the real value of the home will be the property in a waterfront location. Look for five key points when searching for that perfect property:
Sandy beach. Proximity and quality is important for both younger and older family members.
View. As people age and do less on the water activities, the view becomes more important.
Level lot. The flatter the lot, the better for easier water access
Proximity to water. Homes closer to the water allow a closeness to nature and keeping an eye on any young kids by the water.
Privacy. Some lakefront properties have as little as 50 feet of frontage, which offer very little privacy. Ideally, a property will offer 150-200 feet to give privacy from neighbors.
Choice Properties has real estate agents who specialize in waterfront investment properties in the Indian Lakes area to assist with your needs and sort through complex issues to get everyone on the right track to finding that perfect location.
Get more advice on finding and owning an affordable waterfont property.
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Whether you are looking to buy or sell a home in Central Ohio, you'll need to know your market, i.e. your 'comps'. Comps are the homes in the area where you are transacting business that are comparable, meaning they are in the same neighborhood, are similar in size, layout, and condition, and have similar features or extras (like pools, fireplaces, or even neighborhood playgrounds).
These comps are used when determining pricing. From the buyer's standpoint, knowing the market gives them a place to start with a fair offer, while from the seller's viewpoint, comps help them to figure the best price point for the property. A good real estate agent stays on top of their local market, making sure to understand the ins and outs of what makes a property comparable.
Location, location, location . . .
When pricing or valuing a home, the first thing you want to do is look at what's nearby. Stay within the neighborhood to ensure things like the age of the homes and the community features are similar. School zones make good measures of parameters.
No time like the present . . .
Keep your eye on the pending sales. The initial bargaining has taken place between the buyer and seller, so these are, in effect, a plethora of current data for the market—including the latest 'dollar per square foot' average. A good rule of thumb is to look at sales within the last three months, but not more than six months old, as trends could've changed drastically in that time.
Show me the extras . . .
With the where and when pinned down, now you can look at the fun stuff, the property features. The main thing to compare here are the number of bedrooms/bathrooms and the lot size. Narrow those down, and then you can get into the smaller extras. Views, updated appliances, flooring materials, pools, garages, fireplaces . . . the list can get rather long, but these are the creature comforts that are going to help you turn your purchase into an Indian Lake Home (or sell your property to the highest bidder).
Don't overanalyze or stress . . .
While it is a good idea to have some knowledge of how the market works, there are professionals available to help you navigate the world of home buying and selling. Choice Properties has trustworthy agents to assist with the petty details of each comparable Logan County home. We make it our job to know the market so that you can make Indian Lake, Bellefontaine, or the surrounding areas your home.
Making the decision to buy a home in Central Ohio doesn't have to be daunting or intimidating. With a little understanding of how the mortgage process works, you'll be a proud bellefontaine homeowner in no time.
A pre-check of your finances is highly suggested to give you a starting point. Knowing what you can realistically afford, even in the case of a financial emergency, can save you heartache down the road. You don't want to bite off a mortgage that is bigger than you can chew. Knowing your limits will also narrow your property searches down and help you stay on target. Online calculators are available to help you determine affordability:
(estimates an affordable purchase price based on your income and available down payment)
(estimates monthly mortgage payment based on purchase price, insurance, and tax rates)
Now that you have an idea of what you can afford, it's time to start the mortgage process by speaking with a lender. Getting your home loan underway will result in you having qualifying documentation when you reach out to a realtor and start looking at actual homes—and should you find "the one," it'll be great to have no delays in closing the deal because of bank issues.
Information you will be asked to provide to the lender (with documentation):
Personal — Date of birth, marital status, number of children and their ages, and social security number (to pull your credit report).
Last Two Years (minimum) of Residential History — Rental or mortgage, insurance, and tax figures.
Proof of Employment and Income — Wages, bonuses, or commissions and employment history for at least two years back. Be prepared to show completed tax returns. Mortgage lenders will average variable and self-employed income over two years.
Assets — Even if your down payment comes from one account, ALL checking, savings, investments, and retirement accounts will have to be recorded and verified. Keep in mind that if you're fortunate enough to have funds being gifted to you, there are special rules which apply. Speak to your lender.
Debts — Full disclosure of payments and balances owed on all credit cards, student loans, auto loans, existing mortgages, and any alimony or child support requirements.
Identify your preferred loan type and available down payment.
With this information your lender will be able to create a personal profile and recommend loans commensurate with your individual budget. Everyone is different and therefore multiple loan and rate tiers exist. Your lender will be like your personal guidance counselor as you go through this process. Your existence is at their disposal, on paper at least, and so they can use their expertise to suggest what will likely be the best path for you to follow. Whether it be a short term investment property with plans to turn around and sell, or settling in with a 30 year mortgage on a family home.
Our Choice Properites Real Estate agents are knowledgeable and willing to meet with you and your lender so that the fun part can start . . . home shopping! In the crazy days that will come in the whirlwind process of home buying you can expect the following to happen:
Upon finding "the one," your agent will write up an offer of what you're willing to pay for the property and present it to the seller; if accepted, then your loan process will move to the final approval phase.
Your lender will lock the interest rate on your loan (this can't be done without an acceptance as it is determinate upon buyer/seller price agreement).
Depending how much time has elapsed since financials were initially gathered and verified, your lender may request updated documentation from you; your lender will also order an appraisal on the property and review the property title report at this stage.
When all I's are dotted and T's are crossed, the final loan documents will be drawn up and your closing will be scheduled. Once the papers are signed and the loan is funded, the keys will be placed in your hand.
Congratulations and enjoy your new Logan County home!