Perhaps you’ll be buying a second property as an investment or because your work regularly takes you to a certain area, you’ll be retiring soon and will have more leisure time, or you want a great home as a vacation getaway. Whatever your reasons are for owning two homes, there are a few issues to consider as you search for the perfect property. 

#1 Being Clear On Your Usage

If you’re buying a second property as an investment, there are significant differences from when you’re buying the house as a second residence for you and your family. How you use the property will determine its classification, and each type—a second home and an investment home—comes with different tax benefits and drawbacks and mortgage loan criteria. 

A second home is one you will live in or visit during part of the year while an investment home is one you’ll use to generate income through renting it out. With an investment home, the income earned is typically taxable with expenses connected to the property being deductible. Although you may be able to earn small amounts of money on a home that’s being classified as a second home, the income may not be taxable and the expenses may not be deductible. 

There will be differences in the two types, too, when doing your income taxes. So, before you’re active in the process of buying a second home, be clear about your intent and ask your accountant or financial advisor any questions you have.

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#2 Deciding Where You Want to Buy

Perhaps you already know exactly where you want to buy this home because of an infinity you already have with the community. If so, you can check the box on this item. If you aren’t yet sure where to buy, you could start with a Google search to get a general idea of places of interest. If one captures your attention, then look at their community’s website and other helpful online resources about the locale. 

Once you have a list, look into homes that have recently sold there to get a sense of the price you’d likely need to pay and if this is a community where you could get a good resale value when the time comes. To make your search easier, here’s information about luxury homes in Amelia Island, FL that are up for sale. 

Investigate the general ambiance in the community where you want to buy and the more specific vibe in individual neighborhoods. Do they match what you want? What amenities that are important to you are available? If this is relevant, what’s the local school system like?

#3 Checking Local Zoning Laws

The main zoning types are residential, commercial, and agricultural with a key purpose of zones being to separate residential and commercial areas. That said, there can be wide variations in zoning laws and, before buying a second home, you’ll want to know what restrictions exist in your area of choice. 

For example, if you have plans to rent out your home, even only occasionally, know what the current zoning ordinances say on the subject. Ordinances can also determine acceptable lot sizes, architectural styles permitted, height of structures, and density of them within an area. 

Although zoning ordinances may sound a lot like homeowner’s association (HOA) rules, they aren’t the same. The first are established by local governments while the second are specific to a particular housing development. 

#4 Determining Your Budget

At the highest level, when buying a second home, what price are you willing and able to pay for the house? How much wiggle room do you have?

Besides the price, get information about property tax and home insurance costs because they can vary significantly by state and then by community. If buying along the waterfront, there can also be flood and wind insurance to consider. Other potential costs include HOA fees, utilities, and typical maintenance. If, when owning two homes, you plan to travel between them regularly, also consider travel costs. Plus, you will likely need to buy furnishings for the second home. 

Once you get good estimates for each of these, you should be able to tell if buying a second property in your community of interest makes sense.

#5 Getting Preapproved

Unless you’ll pay cash when buying a second home, it makes sense to get preapproved with your lender of choice. This will help to confirm that you have the financial capacity for owning two homes, give you a target price point when negotiating with a seller, and reassure sellers that you’re making a qualified offer. 

Items the lender will likely want to see in the preapproval process include pay stubs, income tax returns, savings and investment statements, loan and credit card statements, and so forth.

#6 Choosing a Real Estate Agent

When you select a real estate agent who is passionate and knowledgeable about your community of interest, you can gain deep insights into available properties as the professional agent helps you to find a property that meets your wants and needs within your budget in your location of choice. 

If the property is in an HOA (as many in Amelia Island are), the real estate agency can help you to go through the amenities and requirements and decide if they are ones that work for you and mesh with your plans for the home. There can also be governmental statutes that regulate dock constructions or additions and so forth. 

Each of our experienced, dedicated, and energetic real estate agents can guide you as you view properties in our community, which include luxury homes in Amelia Island, FL.

#7 Visiting the Community

If you’re not able to physically visit the community, you can look at photos and videos available online and ask questions of your real estate agent. If you can visit the community, you can get a sense of individual neighborhoods, how close they are to important amenities such as restaurants, golf courses, and shopping venues—and, in Amelia Island, how closely they’re located to the waterfront and the incredible beaches and the area’s natural beauty.

You can attend open houses and/or have your real estate agent set up private viewings. Each time, you can decide if the property provides all of your “must have” items and as many extras as possible. In Florida, although the weather is often gorgeous, you’ll want to consider how well a home would be protected from storms, including hurricanes. If protections in place aren’t as complete as you would like, factor the costs of updating the home into your offer. 

When buying a second home in a place where you’ll sometimes work or otherwise have a regular commute, it can make sense to do test runs while you’re visiting. Do so during peak hours, too, to see how long the drive will take. Overall, Amelia Island is a walkable city, but you’ll want to factor in when you’ll need to drive.

Here’s a key advantage in choosing Amelia Island when buying a second property: the community can provide a relaxing atmosphere where you can get away from it all; but, when you need to travel—or people want to visit you—you’re close to Jacksonville and all of its highways and airports. 

#8 Making an Offer

Once you find the home of choice, it’s time to make an offer to the seller—and, when doing so, it’s important to be strategic, presenting an offer that’s strong without paying more than you should. This is where the knowledge and experience of your real estate agent can really pay off. 

Elements of the offer will include how much you’re willing to pay for the home but also much more: the date of the offer, the property’s address, the amount of your earnest money deposit, loan details, escrow details, contingencies, closing date, and possession date. This information will all be included in the purchase agreement you’re presenting to the seller and, before you sign it, make sure you fully understand the details; ask questions from your real estate agent and/or lawyer when you don’t. 

Once all is ready, the real estate agent will present the offer to the seller’s agent. The seller may have multiple offers, so it can take a couple of days to get a response; this can include an acceptance or rejection of the offer—or a counteroffer. Each decision point can be time sensitive as the buyer and seller try to come to an agreement on the home’s sale. 

#9 Obtaining Financing

Lenders often have different loan programs for second homes, including the rates offered and the qualifications for approval. You may, for example, need to have a higher credit score and fit within a lower debt-to-income ratio. Plus, you may need to make a bigger down payment than what’s acceptable on the first home. Typically, government loans like FHA and VA aren’t available for second homes although FHA may make exceptions for commuter homes.

While getting preapproved, you may have already discussed these issues with your lender of choice and be prepared for them. If not, your real estate agent can help to guide you towards lenders that are more open to borrowers who are buying a second property.

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#10 Furnishing Your New Home

When owning two homes, you won’t simply transfer the furniture, appliances, and more from one home to the next. So, once you know what home you’re buying and the number of rooms it contains, you can enjoy furnishing it in the ways of your choice. If this is meant to be a relaxing get-away place, for example, you might focus on buying comfortable sofas, chairs, and more to unwind. 

You might also want to have the big screen TVs and other technologies that you’ll use to entertain guests who come to your vacation home. If you love to cook, then having smart appliances, a large dining room table, a wine cooler, a fully stocked bar, an outdoor kitchen and grill, and more may be essential.

A vacation home is a perfect place to furnish in exactly the way that pleases you. If you’d like to embrace a chic beach look, for example, you might decide to go earthy: bamboo, natural wood, cotton, linens, and more in neutral palettes. Accent shades could come in hues of blue and green. Plus, you’ll want to maximize your outdoor space so you, your family, and guests can enjoy the stunning views and sunsets in Amelia Island. 

If you’ll be owning two homes while still working, you may spend plenty of time working remotely. Furnishing one of the rooms in your homes as office space, then, can be quite practical. Fortunately, you can be functional and have all of today’s technology in a design that suits you—whether it’s with the neutral tones and comfy furniture described above or something brightly modern.

A Look at Luxury Homes in Amelia Island, FL

If you’ve decided that owning two homes is right for you, and Amelia Island is the perfect place for that second residence, Amelia Island Real Estate is here to help. 

When looking at luxury homes in Amelia Island, FL, you’ll notice that no two properties are alike. That is, in fact, a feature of luxury homes: that they’re uniquely built with no cookie cutter elements involved. Although considering what’s “luxury” can vary from person to person, other components include how these homes are:

• Significant in size

• Built from high-end materials

• Often designed by a renowned architect

• Located in exclusive, in-demand neighborhoods

• Surrounded by other exceptional homes

• Providing a sense of privacy, perhaps in a gated community

• Close to shopping, dining, and entertainment venues

• In the area’s top ten percent of homes

In Amelia Island, these can include oceanfront properties, intracoastal properties, and ones in golfing communities—including a high-end home that’s right for you. 

Contact Amelia Island Real Estate

When buying a second home in the incredible community of Amelia Island—and wanting unsurpassed quality in guidance and service—please contact us!