Have you always dreamed about buying a second home? A beach house with a water view, a cabin tucked away in mountains, an urban house somewhere in the middle of all the hustle or bustle, etc., are all great options for that second house in Texas. That can be your family retreat, a place where you can go to work or rest, or simply a place that you will rent out and earn some extra cash. This all sounds amazing! However, be warned – buying a second house in Texas does come with its pros and cons. And, doing this is not something you should do without taking everything into consideration first. But, do not worry, we are here to help you out. We will list some of the most important pros and cons of buying a second house in Texas that will hopefully help you make your decision.
Pro: Vacation Rental Income
Having a second home means having a house where you will occasionally go. You will not be there every day, per se. So, why not consider renting that second house and allowing it to generate you some extra income. So, whenever you are not there, allow renters to come. Just be sure to hire professional cleaners every time you are moving in and out of that house – after all, you do not know who those renters will be.
But, it just goes without saying that if you want your home to attract renters all year round, you will have to make sure that it is in a suitable area. It should be somewhere where tourists love to dwell. If you have difficulties finding a place of this kind, that is, a place that will be suitable both for you and for renters, you can always hire a local real estate agent. A local realtor knows the ropes when it comes to buying a second home in Texas.
Pro: Saves Money on Your Vacations
If you are one of those people who enjoys vacationing a couple of times a year, you definitely know how expensive that can be. On average, an American family spends around $10,000 on a vacation. And, that is just for one vacation. So, if you want to save some money on those breaks, long weekends, and trips, buying a second house in Texas might be a good idea. This way, you will always know where you will be going and you will not need a ton of money to have a great vacation.
We know what you are going to ask – is it really worth it to buy a second house in Texas just so you can go there on vacation? It is if you know how to play your cards right! Instead of calling Evolution Moving and moving into that house, you should go there only when you want to vacation and leave it to renters all other times. This way, the house will not only pay for itself, but it will also save you the money you would otherwise spend on accommodations.
Pro: Tax Benefits
Believe it or not, but buying a second house in Texas can provide you with some amazing tax benefits. For instance, if buying a second house puts you over the $1 million debt threshold, there is a big chance that you will be able to have all your interests written off. Moreover, if this second house is used for both living and renting, you are in for a treat. Namely, by partly living and partly renting your second house, you will be able to lower all your rental-related taxes as well. This will be a great opportunity to spice things up – it is fun to live in two houses at the same time. You just have to learn how to speed up the moving process every time you move from one house to another.
Con: Special Attention and Maintenance
Everything that has pros must have cons as well. So, do not rush with buying that second house in Texas. You can easily find a second house, and if you rely on people in the area to help you move, you can also easily settle in that second house. But, once again, do not rush this decision. As previously said, doing this has a lot of cons. And, one of the biggest cons is that second houses require a lot of time, energy, and money consuming maintenance and special attention. Not only will you have to be there for all renovations and upgrades, but you will also have to constantly fix and replace things that are broken and damaged.
Things get a lot more complicated if you decide to rent this house out. Tenants or tourists are known for making a mess, so, it will be your job to get rid of that mess. And, to get rid of it quickly and efficiently (before the new renters arrive). To do all of this, you will either have to live close to the second house you bought and be ready to roll up your sleeves or to hire a landlord to do all of this for you.
Con: A Financial Disaster
Buying a second house in Texas at the wrong time and place can be a huge financial disaster. All the mortgages, loans, fees, and even all the home improvement costs and moving expenses can lead you to bankruptcy. Thus, before you make this big purchase, be sure that you can actually afford it. Examine your financial situation and try to predict all the problems that may occur in the future. And, most importantly, try not to ‘touch’ your retirements funds, your children’s college savings, and all other important parts of your budget. If you are not sure how to do all of this, consult a financial advisor. He or she will, by examining all the bank statements and your savings, tell you exactly what you should do.