3 reasons financial planning can make it easier to buy a second home or rental property in 2022
The idea of owning a second home or a rental property seems appealing to you. Maybe you would like a little extra cash to pad your savings accounts, or perhaps, you are looking for a nice, relaxing getaway property. Either way you look at it, the housing market was booming in 2021, and it was a seller’s market.So, it may not have been in your best financial interest to purchase an additional property in 2021. But, when the 2022 housing market cools off, you’ll want to be ready.
Here are three reasons why you should consider financial planning before you buy another house.
1. Determining your budget —Financial planning can help get your head in the game, especially if you opt to work with a ProVise CERTIFIED FINANCIAL PLANNER™.Your financial planning will help you determine a realistic budget for your new house. Setting a budget should be your first step — before you even browse online “just to see what’s out there.”
2. Evaluating your cash flow and savings —Do you have enough cash on hand to purchase a second home? Think back to all the things you needed to buy for your first house. You will probably need to purchase a lot of the same types of items for your second home. Your financial planner will most likely advise you to have a hefty amount of cash available to you.
3. Understanding the big picture —Sometimes it is hard to see the big picture — especially when it comes to finances. A financial planner can help you take a bird’s-eye view of your finances. They will help you evaluate priorities and determine how your investing in a second property may impact you in the long run.
Talk to a ProVise CFP® professional about your financial planning to buy your second home in 2022
At ProVise Management Group, our CERTIFIED FINANCIAL PLANNER™ professionals can get to know you and your current financial circumstances, goals, risk tolerance and personal values to help you develop a plan that works for you. We can also create a written plan for you at a fiduciary standard of care. All our written plans come with an unconditional money-back guarantee. If you are unhappy with your written plan, you can return it to us, and we will refund 100% of the fee paid.
Are you ready to talk to a professional about planning to buy a second home? Contact ProVise today to schedule a complimentary consultation.