The lure of the cool weather and dancing pines during summer months and having a second home is certainly an American dream. The good news is our modern lifestyles makes this living an attainable dream. If you’re considering purchasing a second home, Flagstaff has many, if not all of the things you may be looking for.
Homeownership, in general, is a huge responsibility. However, there are obvious benefits for purchasing a second home. These include:
- Just a two hour drive from the Valley finds a whole new climate, setting and lifestyle.
- Can also meet your NAU students housing needs.
- Relaxed, mountain lifestyle away from the stressful hustle.
- New outdoor activities. (See 'About Flagstaff')
- Tons to do including the '7 Wonders of Flagstaff'.
- Recharge and get away whenever you want.
- Building a long-term relationship with other community members in the area.
- Long term property appreciation.
- Short term reselling potential. (flipping)
- Profit potential (note investment properties and second homes differ in that second homes are not considered rental properties or properties owned for profit)
In contrast, owning a second home also comes with added responsibility. Some considerations include:
- Increased expenses (maintenance and repair)
- Increased liabilities (mortgage payments)
Other distinctions between primary, second home, and investment mortgages include:
- The vicinity of a property to the primary residence. Typically, state regulations will specify the eligible proximity between a primary and secondary residence.
- Down payment requirements are typically higher than first-time homeowners.
- Second-home mortgage rates are also typically higher than primary-home mortgage rates
Your team that should be involved in the purchase of a second home:
- CPA: talk about budgeting, tax advantages and more.
- Real Estate Wealth Manager: (That's us). Real estate wealth management refers to the process of maximizing the value and return on investment of a property. The real estate wealth manager is an advisor to the property and looks out for the property owners best interest. They are proficient in repositioning a property and streamlining operations to reduce expenses, increase income and improve property value. They understand real estate as an investment and often deal with strategic and important issues related to the property.