Many people choose to buy a second home in Delaware for its low tax rates and mix of beach communities and small towns.
A second home in this state can be an excellent investment for a savvy buyer, but you will need to carefully consider why you want to make such a purchase and how it can impact your finances.
Define your objectives
Before you begin looking at properties, you should consider how you plan to use a second home. For example, you may intend to use the house as a vacation home for the foreseeable future, but eventually, you might want to retire to that house one day. Understanding these objectives will help you choose a property that meets both your current and future needs.
Evaluate your financial outlook
Your current finances are an important part of deciding how much house you can afford, but you should also consider your potential future income, particularly if you are close to retirement and expect to make less when you are no longer working.
Understand the implications of ground leases
Some properties near Delaware’s beaches have land leases. If you buy one of these properties, you will not own the land the home is on. Instead, you will pay a yearly fee to rent that land. To avoid unexpected costs, do your due diligence and verify if a house has a ground lease.
Even with careful planning, you may run into unforeseen problems. Leave room for contingencies when setting your budget for a home and estimating a time frame for purchase.