Buying your second home before the first
By Sofia Yarberry
Buying your second home before your first sounds almost like a riddle, or some oxymoron of a lead in.
However, it is simply a call to all the renters out there. Yes, we are talking to you New York, San Francisco, and Orange County. You may not be ready to give up your Williamsburg loft, or your apartment with an easy commute to your job, or even your quaint beach cottage on Balboa Island. But at the same time, you may be ready to buy a house and have only one place to truly call home.
If the real estate you can actually afford in your city isn’t quite what you’ve been dreaming of, that’s where Palm Springs come in— with its affordable real estate, great condo and single family home market, and more than desirable location, Palm Springs is booming with these “second home” buyers. In an article by Scott DeSimon titled Why I Bought My Second Home Before My First Home: Money, Freedom, Fireflies, he writes: “We needed two things to make it work: enough money for the down payment (in our case, about $50,000) and—this part is key—a city apartment with below-market rent to make it economically feasible.” You get the benefits of being a homeowner while also living where you work, where your kids go to school, and where you’ve built your social circle.
DeSimon’s article, breaks down the process into three major considerations:
1. Finance. You must have enough money for the downpayment of your “second home” while of course maintaining enough money for rent and other expenses. If you don’t have a mortgage on another house, your second home, at least on paper, can be financed as your primary residence– saving you a good chunk of cash.
2. Do you want to make money on your second home? With AirBNB, craigslist, etc. there is potential to make some extra money off your home when you aren’t using it.
3. The costs that come along with buying a home can be unexpected. Landscaping to Homeowners Dues to the unpredicted need for Pest Control… it can become a burden if you aren’t financially prepared to be spending your extra money on home care costs.
For more detailed explanations and/or to discuss any second home opportunities in Palm Springs, call Alex Dethier at 760-808-3300 or email.