Having a second property can look different depending on your stage of life. Some people choose to purchase a cabin or summer home. Others, who are usually more advanced in years, may choose to purchase a timeshare or second property somewhere warm for the winter. Still others might choose to purchase a second property to rent out for extra income.
There are some important questions you will want to ask yourself before you decide to purchase a second property, such as, “can we afford a second mortgage?” or, if the Saskatoon property is a rental space “am I ready to deal with potentially difficult tenants?” It is important to seriously consider the financial cost before purchasing a second property to make sure that it won’t add financial strain to your life.
Another important thing to consider is what type of second property you will purchase. A holiday home and a rental property have different value for mortgages and other financing options. Knowing what you want to buy is an important step in figuring out whether or not you can afford to purchase a second property.
The other important factor is looking into the various financing options such as HELOCs, home equity loans and conventional mortgages. Talking with a financial advisor can help to shed some light on what the best financing options before you start to browse.
If you are ready to purchase a second property, or a first property, come talk to us at North Ridge Realty. Our realtors would be happy to help you find the perfect new home in Saskatoon!