Perhaps there is no greater sign of American prosperity than the ability to own multiple homes.
Not only are you able to provide living accommodations for your family, you can enjoy a secondary domicile somewhere else for purely recreational purposes.
The increased interest in Georgia mountain lake property in recent years is downstream of this current. Many are drawn to the Georgia mountains for the cool weather and natural paradise. Others come for the low taxes and great business environment.
Whatever your motivation, owning a second house used to be the exclusive realm of kings and emperors, but no more. Today, many Americans must decide whether or not they want to make the jump into a mountain lake property.
This is a big decision for obvious reasons.
A home is often the most expensive purchase someone will ever make. Buying a second home might be even more expensive than the first.
Either way, it is a massive commitment. For that reason there are a number of questions anyone considering this purchase needs to keep in mind as they go forward.
Why are you buying it?
First and foremost you must ask yourself why you want to buy a Georgia mountain lake house. If you are doing it to impress your social group or keep up with the Jones’s then you ought to reconsider.
While no one particularly needs a second home, some reasons are better than others. Perhaps your family has a particularly difficult time with the summers in the city you live.
Perhaps there is a lack of recreational options in your area.
Maybe you need a place to practice your sailing skills and living in the city just isn’t cutting it. Regardless, you need to look inside yourself and think if you will be happy with this purchase in a year, five years, ten years.
If the answer is no, then you should put it on hold.
Can you afford it?
This seems obvious, but when it comes to vacation homes many people end up way over their heads before they know what has happened.
This is because there are so many secondary expenses with this kind of purchase.
Consider how many extra expenses were involved when you bought your first home. Not only did you have to pay for the price of the home (or a loan more likely) but you also had to pay for closing costs, home owner’s fees, property taxes, and countless other expenses.
A second home will have similar expenses, except there is likely to be even more of them. For instance, a lake house might require flood insurance, something most homeowners do not carry unless they live in specific parts of the country.
It is not a bad idea to try to get a running count of all the extra expenses you will be incurring with your purchase.
While Georgia’s cost of living ranks slightly below the national average, it is still not cheap.
It is also vital to remember that you may not receive the same tax breaks with a mountain lake house that you did for your first home.
Any kind of mortgage breaks you are receiving will likely be gone, as the government is not as sympathetic to those purchasing a vacation home.
If you can arrange all the expenses in one place in front of you, you can really see how much this purchase will cost. If you can’t afford it now, it is ok! That just means you have a financial goal to work towards in the future.
Where is the housing market headed?
The economy is always going to be a major consideration anytime you are thinking about a massive financial commitment. There are the obvious worries – is your job stable, will the property hold its value, etc. – but there are also other thoughts to be had as well.
For instance, how will economic fluctuations impact the area you are buying in? Once you buy a mountain lake house, you are now committed to two separate neighborhoods, two locations.
Chances are your lake property is in a more tourist oriented part of the country. If the economy dives this might not be the same community you fell in love with when you found the property.
Unlike with your first home, a mountain lake house is probably located a fair distance away from your job and your family life. You will be hard pressed to find a good reason to keep it if you run short of money as the economy fluctuates.
It is a pure luxury good. It is a good idea to hold off on purchasing a vacation home until you are really certain of your own financial stability.
Perhaps waiting an extra year or two after you feel comfortable buying it is a good idea, that way you can build up the sort of reserves and stability that you need to be truly safe in your new location.
Regardless of when you decide to buy mountain lake property it is a purchase that should not be made lightly.
It is a huge investment and one that you cannot take back. If the economy goes down you could loose on your investment.
But if the economy continues to climb it can be a sound investment and you could make a huge profit when you sell years down the road. All while enjoying your Mountain lake property throughout the years. Many choose to sell their city homes and retire on their Georgia mountain lake property.
Ultimately no one can decide what the right thing to do is besides you, but consulting experts is a must for a decision of this magnitude.
Just remember, there is more than one way to enjoy the American Dream!