Purchasing A Second Home

Article submitted by Katie Drescher from Coldwell Banker The Real Estate Group Inc.  For more information call 920-858-1952

Many homeowners are concluding that if one home is a good investment, two may be even better. If you are considering adding a second home to your life you may want to consider the following questions: Why are you buying -is the goal of a second home? Is it an investment, recreation, or retirement? If the goal of a second home purchase is investment, you may work to maximize your second homes' investment value by considering the following criteria: Buy it right - Select a prime location. Choose an area with growing demand. Know what you're buying. Do not assume values will always go up. Rent it right - Buy it with renting in you mind; meaning you are not buying this to live in yourself. Determine your target rental audience. Make management easy. Factor in taxes and deductions. Sell it right - Consider a 1031 exchange. Convert the rental or recreational property into a primary residence. If you are looking for a home for recreation or retirement consider how often will you use it (weekends, summers, holidays) and with whom (a partner, children, grandchildren, friends or yourself)? Distance from your primary home is an important factor. It is also useful to think about how much you are willing or able to spend. What location are you looking for water, woods, golf courses, meadows, open pastures or shopping areas? Keeping these ideas in mind can help you to find the second home that is perfect for you and meets your needs.

Katie Drescher Coldwell Banker The Real Estate Group Inc. 2711 N. Mason Street Appleton, WI 54914

office 920-993-4042, cell920-858-1952, fax 920-993-4044, kdrescher@coldwellhomes.com