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People approach the whole idea of owning a second home from a hundred different perspectives simply because a second home can answer so many different purposes. If you are an Rehoboth Beach homeowner at the stage in life where making retirement plans is becoming a more immediate imperative, you might want to buy a second home as a vacation destination—but one which is also a tryout for your family’s future center of operations. Those who have spent a good part of their lives in cities sometimes seek a second home in the mountains or at the shore as a restorative refuge. People living in less crowded environs might crave a pied-à-terrefor proximity to a city’s cultural riches. There really can be a hundred different reasons (and that’s not even counting all the financial ones)!
Once you begin to seriously entertain the notion, it becomes evident that deciding on which of many possible directions to pursue will involve weighing the tradeoffs each presents. In addition to an opening a conversation with the Rehoboth Beach real estate professional whose advice you’ve come to trust the most, some of the main points you will want to consider—
· If the second home is going to serve even temporarily as a weekend getaway spot, then buying within reasonable driving distance may be more important than you might assume. Keep in mind that the drive (or flight) will grow steadily less interesting as time passes.
· In most instances, a second home will be occupied by members of your family only on a part-time basis. This brings up a number of issues—among them, insurance. Vacant properties present a different profile to insurers than do homes that are occupied most of the time. Hazard insurance tariffs could also differ from what you are used to (especially in flood-prone areas). Investigating insurance coverage and costs early on in your search will help you to avoid surprises.
· You should consult your tax expert for details, but as a general rule, if the home is not rented out as a business proposition, you’ll likely find that you are able to deduct mortgage interest and property taxes on your Federal tax return. Then again, if you are thinking of renting the house out for more than 14 days per year, rental income is taxable. In that case, though, you’ll be able to use deductions for expenses, such as insurance, maintenance, professional fees, and sometimes even depreciation. Each situation will be different—again, your tax professional will have the relevant answers.
· Financing a second home is similar to financing your main residence. You are likely to need a down payment of 10% to as much as 30% in some cases. If you will be drawing on the equity in your current home, it’s only prudent to be able to retain a reasonable amount of reserves for unforeseen emergencies.
Many people buy a second home in anticipation of retirement. If that is the case, think of factoring in the availability of quality medical and support services in your search areas. A remote cabin in the woods may seem appealing now, but as a retirement venue, maybe not so much! Thinking about the long range is never more important than when you are entertaining the purchase of a second home. I’m here to help clarify those issues, as with all your other Rehoboth Beach real estate need.
When a Rehoboth Beach home seller tallies the total financial impact of selling the old and then buying the new home, in addition to the closing and brokerage costs, the expense of the move has to be reckoned, too. It may seem like an afterthought, but especially for larger homes and families, it’s a cost significant enough that it bears some economy-minded preparations.
Although doing the lion’s share yourself is the surest way to bring that price tag down, it will also add a load to an occasion that’s already stressful enough. “Moving day” can prod your already surging emotional stress meter further into the red if you are trying to do everything yourself (or relying on friends to carry more of the load than is healthy for the relationships). Since this is such a common hurdle, a good deal of wisdom has developed that can keep potential Rehoboth Beach moving day misery to a minimum. Here’s a collection of useful tips:
1) Gather ye boxes while ye may…far ahead of time. Yes, you can certainly buy them—and probably should for special types like wardrobes and glassware—but since you know you’ll be moving once the Rehoboth Beach house has been sold and the new place is ready to move into, make a point of holding onto all the clean cartons you come across leading up to the big day. Once you’re sure you have gathered enough, pinch yourself (and get back to gathering more). Somehow you always need many more than you imagine possible!
2) Cut cut cut. Long before you approach moving day, get serious about all the stuff you don’t need any more and yard sale (it’s a verb) it, Salvation Army it (ditto), give it away, or just toss it out. If you are going to use professional movers, cutting down the size of the move will be worth its weight in…well—let’s just say it will be worth it!
3) Dismantle ahead of time. When the movers arrive, a great chunk of their time (and thus, their bill) can be spent taking things apart for safe transport. You can do this ahead of time with a pen and some masking tape, a wrench, pair of pliers, and some Ziploc bags. The bags are for the nuts, bolts, screws, and other fasteners. The masking tape and pen are to label the bags and tape them to larger pieces—you’ll thank yourself at the other end, when it’s time to reassemble everything.
4) Collect all receipts. Whether you pay movers or rent a van or trailer yourself, remember that moving expenses may be tax deductible. If you get a new job that’s more than 50 miles from your previous home within a year, it probably qualifies.
5) Time your move. The major stampede for movers happens during the high volume times of year (spring and summer) and especially at the end of the month. Planning to move any other time (like right about now, for instance) will make it that much more likely one of our Rehoboth Beach movers will be able to give you a deal. And get a firm price guarantee whenever you can; estimates based on hourly rates can take a lot longer than expected!
Picking up stakes and leaving a long-time Rehoboth Beach home (or moving to your new Rehoboth Beach home) is a major life experience you’ll want to remember as the delightful opening of new doors instead of a harrowing misadventure. A little planning ahead of time helps that happen. Part of what I offer my clients is the experience of having shared many ‘moving’ experiences. Call me when one is on your horizon! Call/Text me Russell Stucki at (302) 228-7871, email me at firstname.lastname@example.org, visit more listings at www.beachrealestatemarket.com.