If you are already a homeowner and are thinking of purchasing another home, your reasons for buying again will dictate whether you should rent or buy a second home.
Possibly you want a vacation home or maybe you want to invest in the real estate market before prices boom again. If you just want a vacation home to stay in for short periods of time, you may consider renting instead of buying a home. When you buy a home, you are responsible for property taxes, maintenance costs and homeowner's insurance. These expenses will always be there no matter how much time you actually spend in the home. In addition, you may decide that you don't want to commit to a second property mortgage, especially if you only plan to use the home occasionally.
There are, however, advantages to owning a second home. Having a second home allows you to have complete control over how much time you spend away from your primary residence. You can also leave your property, car and other belongings at your home. If you rent, you are subject to the landlord's terms. Friends and family members can also come and go as they please if you own the vacation home.
You may also decide to rent the second home year-round or by the week as a vacation destination. Both options allow you to pay part of the mortgage with rent money and build equity in the home through those mortgage payments. If you buy a foreclosure, you may get a second home at a bargain and gain the rental income from your investment.
The choice to rent or buy a second home depends on your finances and how much responsibility you want. You will need to obtain financing and make a down payment on the home if you buy. Plus, you'll need money for ongoing maintenance and repairs whether you live there, rent the property or do both. If you want to look for foreclosed homes in a specific area, go to RealtyNow and enter that zip code now.