PROUDLY CANADIAN
Why buy a vacation home?
The following 4 questions should be asked before buying a vacation home and they could help you decide whether to apply for a second mortgage in Guelph.
Question 1
One thing is for sure; if there is any doubt about the affordability aspect, then your dream vacation home could turn into a financial horror story. Likewise, if you intend on making it an investment with the help of a second mortgage then be sure it is situated in a place that people will want to visit. Another related financial aspect to consider is the cost situation beyond the initial purchase price and calculate exactly the true cost of your vacation home.
Question 2.
Although vacation homes may increase in value over time, it would be a wise move to get some advice regarding a second mortgage before searching for a vacation home. If you are considering a short-term speculation for your vacation home, be aware that residential real estate carries its own risks. Planning for long-term enjoyment is one aspect and could involve investing in a second home sufficiently large for a growing family.
In the event of you seeking a second mortgage in Guelph for buying another home for retirement, then consider a structure and location suitable for senior comfort and convenience.
Question 3.
If you are considering taking out a second mortgage for the specific purpose of investing in a second home, you are following an upward real estate trend! Take into account that the purchase of rental properties is exceeding that of vacation homes by a significant margin. Although it’s natural for property values to fluctuate, investing some of your available capital into residential real estate could prove a diverse and worthwhile addition to your portfolio. In this respect, consult a broker for advice.
Question 4.
There are horses for courses and in many instances of vacation homes, the question of joint ownership and time-sharing arises! Your Guelph mortgage broker can offer you some sound advice regarding the history of timesharing. The combining of resources can be advantageous providing the relationship is sound and mutually beneficial. Discuss this potential with your broker and the designing of the second mortgage if necessary. Ensure that any agreement or contract is clear and detailed regarding the partnership. Also, that it stipulates precisely the results should either party wishes to opt out of the contract!