Many of the homes sold over the past few years are second homes. Some were solely purchased as investments while others were purchased for a weekend respite. The Stock Market has produced significant wealth for many fortunate investors. Others have saved diligently over the years and now they are either soon to be empty nesters or already are. The next question is what does one do with the uncommitted or newly gained funds? Since you have visited my web home, I will be bold to say you are thinking about purchasing a secondary home close to the water.

Does owning a secondary residence make good financial sense?

Make sure you have cash reserves and cash flow to cover the expense. This home should also be regarded as an investment.

How will you pay for the secondary home?

Financing is available. You may need 20% down and there are several sources for the down payment such as equity from your primary residence, stocks and/or other securities, savings, loans from life insurance policies or family members.

How long a drive are you willing to make from your primary residence to the secondary residence?

The Northern Neck is approximately 2.5 hours from Washington, DC and 1.5 hours from Richmond, VA depending on the route taken.

What type of secondary residence do you want?

Condo, town home or single family home, each has their own advantages and disadvantages.

Do you want a new property or does fixing an older home up interest you?

This is a personal preference, new construction can be initially more expensive but it is complete and ready to enjoy. An older home initially can be less expensive, has loads of character but requires patience, time, creativity and money; all need to be considered. They both have their rewards.

Have you thought about renting the secondary residence out for a vacation rental when you are not using it?

There are several vacation property management companies in the area. Vacation rentals are popular in the Northern Neck because of the close proximity of the Chesapeake Bay (great fishing, sailing and cruising).

Have you considered co-owning a secondary residence with a colleague or friend?

Co-owning a home with another person or family can help reduce the operating and ownership costs. Clear written agreements should be established to avoid misunderstandings later.

This is not meant to be an exhaustive list of points to ponder but merely just to start you thinking.

Please feel free to call me with any questions 703-216-1933 or 703-724-0186.