Dreaming of a Second Home? 5 Options

Do you prefer lounging on the beach or boating on a lake? Maybe you just want to hike in the woods during your free time. If you are lucky enough to be in a position to buy a second home, it’s important to think carefully about what kind of home you want. Almost any permanent structure with a kitchen, bathroom and sleeping facility qualifies as a second home by IRS standards, but that leaves plenty to choose from. Check out the following list of different types of second homes you can buy and see which is right for you.

1. Beach House

Coastal cities and beach sunsets might just be calling your name for that second home. It’s a good idea to make sure you are not in danger of any flooding, so you can properly enjoy long walks on the beach, playing in the sand, surfing and delicious, fresh seafood. And also consider the extra insurance costs of a beach home.

2. Cabin in the Woods

If you’re looking for tranquillity away from the buzz of city or suburban life, a cabin, cottage, chalet or lodge might be the choice for you. Before you decide to go with a woodsy option, consider whether you enjoy outdoor activities like hunting and hiking — or cuddling up by the fire as the snow falls.

3. Lake House

If you enjoy boating activities, fishing, seeing local wildlife and ice skating or sledding in the winter, a lake home can provide everything your family wants. Lakes are usually in rural areas where property expenses are lower, but be sure you are in close enough proximity to things that matter to you, like grocery stores, restaurants or even your primary home (so you actually use it!). Also be sure to investigate any association rules or costs before committing.

4. Condo

A condominium is basically a hybrid between a house and an apartment. Buying one gives you ownership, but condos are usually adjacent to other units and similar to other vacation or second properties, may require association fees and regulations. If you can live in close proximity to others and enjoy the benefits of a groundskeeper, a condo is often a good choice.

5. Recreational Vehicle

Somewhere between a car and a home, mobile properties are perfect for those who want to go somewhere new every year and can handle living in contained spaces. As long as you research the gas prices carefully and have a place to store the RV year-round, this could be a great option.

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Once you decide which type of second home is right for you, be sure you investigate the taxes you could face and the hidden costs it may incur. As you figure out if you can handle the financial burden of a second home (and it’s important to be certain that you can), keep in mind that a good credit score can help lower your interest rate. You can check your credit scores for free on Credit.com to see where you stand. Whether you are already drawing up plans and visiting open houses or only starting to save up for the dream of a second home, it’s important to consider all your options and pick a type of home you will enjoy for years to come.