People have lots of reasons for purchasing a second home in Florida. You might want to spend a portion of the year in a more favorable climate, or you may want to be able to accommodate friends and family on vacation. You may look at a second home as an investment opportunity.
In theory, these are all good reasons to purchase a second home in Florida. However, your circumstances may dictate caution. Medium offers some questions you should consider before pursuing the purchase of a second home.
1. How will you use the property?
Some people say they want to buy a “second home” when what they mean is that they want to purchase a rental property. The distinction can make a difference, so be sure that you have specific goals for the property in mind before you decide to make a purchase.
2. How will the purchase affect your taxes?
When you purchase a second home in Florida, you take on the responsibility of paying the property tax without the benefits of ownership associated with your primary home. The good news is that Florida property taxes are lower than the national median. Nevertheless, you should be sure you can afford to assume the extra expense.
3. What effect will the purchase have on your present and future finances?
Do you currently have disposable income? That is a hopeful sign that the purchase of a second home may be feasible. Will you have to put off retirement or borrow from current plans to afford it? Those are warning signs that a second home in Florida may not be a wise expenditure, at least not now.