Some families dream of purchasing a second property. WSFL-TV Trusted Advisors, Broker Patty Da Silva and Realtor Chris Green of Luxury Homes by Patty Da Silva at Green Realty Properties, joined Inside South Florida to share what you should consider before you sign on the dotted line.
“A second home means a home that you are going to occupy part-time for your personal and family use. It's not a home that you're going to rent,” says Da Silva. “You need to have a little distance between the homes. Otherwise, a lender may consider that an investment property,” says Green.
It may be no surprise that home prices in South Florida have sharply increased. In the current state of the market, delaying a purchase may cost you that new property.
“People are buying anything they can afford and as much as they can afford,” says Green. “It's happening fast, and you have to work fast. You have to find the lender. You have to move, and you just can't hesitate.”
There are other components to consider before you purchase another property.
“You need to have reserves for six months to a year,” says Green. “They need to realize that the interest rates on second homes and investment properties are always going to be higher than the primary residence. The down payment is usually 20% to 25%,” says Da Silva.
For more information, visit PattyDaSilva.com
This Inside South Florida Segment is paid for by Green Realty Properties.