Many people dream of owning a second home in their ideal location, but reality can often sour expectations. Advisors warn clients to consider the decision carefully and to plan for the associated costs and issues that can arise after the purchase.
Partner F. Michael Zovistoski always advises his client to take caution before they make their purchase. “Rent before you buy,” he suggested. “Check out the neighborhood, climate, amenities and other items that you would not otherwise find out from a realtor or the local chamber of commerce.”
It will take time, but it’s prudent. “Understand the good, the bad and the ugly by talking to people in the community you are considering joining,” Zovistoski said. “Don’t rush into a decision you will regret.”
Other considerations include costs for maintenance and improvements on the property, issues with property use and succession within the family, the potential for squatters during periods of inoccupation, homeowner insurance costs, and location hazards, such as natural disasters.
Read the full article published by Financial Advisor Magazine.
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