Purchasing a Second Home

Buying a second house or apartment can be a worthwhile investment. There are several factors that can bring you profit; from renting it out to selling it at a higher value, you're sure to see gains.

Before you run out to make the purchase, make sure that you can truly afford the mortgage. Remember that not every bank charges the same low interest rate for a property that's not your primary residence. Keep in mind that even if you have enough cash to pay for it in full, it might take some time to rent or sell. So you'll have to consider whether your budget allows for an additional yearly property tax payment or maintenance costs.

And in order to assess whether you're actually buying a money maker, there are a few matters to look at: First, study the property's location. Has the value of surrounding properties increased with time? Is the neighborhood well-kept? Most beach front homes for instance, present great value when it comes to resale.

Second, have you taken the state of the economy into consideration? This might be the perfect time to purchase a second home since it happens to be a buyer's market. This means you can pretty much call the shots when it comes to placing an offer. You might have to wait patiently for values to rebound and the real estate market to retrace to more prosperous times. The longer you wait, the higher the price you'll be able to ask. Patience might not be your strongest suit, but it's the ideal strategy for obtaining the maximum out of your investment. In the end, it will be worth it.

But you don't have to lose money while you're waiting to sell your real estate investment. Renting it out might be a good option. A realtor or a rental agency will take care of everything. They'll screen the perspective tenants to ensure they can afford the monthly rent; and ensure they're the type of people who will care for your property as if it was their own.

When it comes to making money, real estate is still a viable vehicle. It's as profitable today as owning a moving company.

Moishe's Moving Systems is a moishes.com moving company, which started its business more than 25 years ago and became the largest and most trusted moving company in the New York tri-state area.