Vermont is a beautiful state, home to scenic mountains and gorgeous lakes. These features make Vermont extremely popular for vacation homes and second properties, as people look to get away and experience the state’s beauty. Buying a home is always a hard process, but it is especially difficult in today’s housing market. Due to this, there are many things you should consider before you actually decide to buy a second home. So if you’re looking at Burlington houses for sale and eyeing up a second piece of real estate, what are the most important things to consider? Let’s take a look.
Purpose of Real Estate
The first thing you need to consider when purchasing a second home in Vermont is the purpose of the real estate. Is this property intended to be a vacation home? Do you want to rent out this property as a source of secondary passive income? Do you simply want a location that is closer to friends and family? The purpose behind the purchase of your second Vermont home has a huge effect on how you should approach the situation. Before you even consider purchasing a second home, make sure you have all the details of your plan hammered out.
Another important factor to consider when looking at potential second homes in Vermont is location. Location is extremely important in real estate, as it has a huge effect on a property’s value. Your second property’s location will also dictate what it can be used for. A property on the lake would be a good candidate for a vacation house, while a property located in the middle of a small town likely wouldn’t. When searching for a second home in Vermont, have some specific areas in mind to narrow the search and make it easier to find what you’re looking for.
When purchasing a second home, retirement should be at the forefront of your mind. Typically people purchase a second home later in their life, relatively close to retirement age. Many people utilize their second home as a retirement getaway, giving them another place to enjoy retirement. For example, you may want to have a second location near the ski slopes or by the lake so you can enjoy those activities during retirement. Even if retirement is still a ways away, you should still take it into consideration. Is this second location something you can see yourself effectively utilizing well into retirement?
Strength of Investment
Before purchasing a second home, you need to analyze whether your purchase would be a wise investment. You should consider what state the real estate market is in, such as whether it’s a buyer’s or seller’s market. Buying a second home in a seller’s market can be pricey, and if you end up reselling down the line the value might not improve that much. Additionally, if you plan on buying real estate with the intention of renting it out, you should research what rent prices are like in that area. You want a property that will allow you to make a profit, yet you don’t want to set rent prices too high for tenets. While not every home needs to be an investment, especially if you never plan on reselling or renting it out. However, the financial outlook for the property’s future is definitely something you should at least consider.