Retirement & Financial Planning Report

If you’re thinking about buying a second home, for your own use and for rental income, do some real home-work:

* Rent in the area where you are considering buying before committing to a purchase.

* Project how much time you and your family will use the property. Most people over-estimate the time they’ll be able to spend at a second home.

* Research the potential for rental income, with a realistic calculation of the going rates.

* Decide how you will manage the property: will you screen tenants yourself or rely upon (and pay) a property manager?

* Determine whether you want to own another house. Are you going to be cleaning out the gutters, doing the yard work, etc., or will you pay for those services? You might prefer to buy a lower-maintenance condo instead.

* Talk with a local real estate agent about hidden costs. Ask about any ordinances that may prevent you from renting the house to tenants, on a short-term basis.