Just a few years ago, nearly 8 million individuals and families owned secondary homes, with the majority of them residing in key states like Florida, Texas, and California. That number continues to rise as real estate market values have been increasing across the country over the last few years, and many homeowners have considered expanding their investment portfolios to include additional property. With current projections favoring more growth in real estate in the coming years, doing so may not be a bad way to diversify your assets. If you’re interested in owning an additional piece of Indian Wells real estate and are wondering what to expect, this guide gives you everything you need to know about secondary home ownership in the Golden State.
Why own a second home?
It’s still crucial to work with the right agent
Though this isn’t your first time going through the home buying process, working with top Indian Wells real estate agents is still your best bet at finding the right property to invest in. You may not need a property with all the bells and whistles of your primary home, especially if you intend to use your home only during certain seasons. If you’re looking to rent your additional property, you may want a space that’s smaller and more manageable. No matter what’s on your wishlist, the right real estate agent can make a big difference in how long you spend looking and how much you end up investing. They’ll bring expert knowledge of the Indian Wells area to the table, providing you with updated information about current market trends, the best time to start looking, and which properties are newly available.
Consider the financial responsibility
It may sound obvious, but investing in a second home means investing in all the financial responsibilities that come with owning. You’re essentially doubling the amount you could pay in maintenance and repair, so keep that in mind. You may experience issues with your AC unit in your primary home, and right as you’re getting that repaired, your heating goes out at your secondary home. In addition to maintenance, you’ll incur additional mortgage payments, insurance costs, and property taxes too. The amount you spend each month on utilities and HOA fees will also increase. If you’re paying off a mortgage on your first home, purchasing another piece of Indian Wells real estate can be tricky. You’ll have to prove that your income is sufficient to cover both the cost of your current loan and any new mortgage loan you take on. Interest rates on a second mortgage may not be as low, either. If you live outside of California but decide to use your Indian Wells home as a rental property, know that the state will tax any income you make from that property unless you rent it out for fewer than 15 days a year.
Think about how often you’ll use it
Make sure you know how to rent it
If you’re interested in investing in a second home, you’ll want to work with an Indian Wells real estate agent who knows the area inside and out. Gregg Fletcher has been in the real estate industry for more than 30 years and specializes in country club and estate properties. Gregg is an agent in high demand because of his decades of expert marketing experience and in-depth knowledge of the local area. With effective negotiation strategies and a personalized approach to every purchase or sale, Gregg works diligently to get his clients the results they’re after. Once you’re ready to find your second home in Indian Wells, reach out to Gregg Fletcher.
*Header photo courtesy of Gregg Fletcher