Secondary Home Strategic Risks

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Check out the attached image: img-719140947-0001

Because interest rates – including mortgages – have been at historic lows, and some confidence in the stock market may not be what is was through bull markets of the past, many people are investing in real estate.

The attachment highlights a Worth magazine  article highlighting the rise in second home purchases. Purchasing a second home  is a very exciting time so we don’t want to be the bearer of bad news AFTER your purchase. It is important to analyze all potential risks of such a purchase – this is where Deland, Gibson can help.

Some things that are rarely discussed include:

  • Was this home a short sale or foreclosure? are you purchasing a property with unknown, or unforeseen risk such as pollution
  • What if the home was on or near a Brownfield
  • Would this property bring on new liability risks from recreational vehicles such as an ATV, Jet Ski or Golf Cart?
  • If this purchase is in a different country how would the foreign laws, liability and insurance policy implementation work?
  • If you are on or near the water or in a higher wind area such as Florida or Texas – are you aware of the high rates of insurance to have wind protection?

These are some of the questions we ask our clients. When buying a new home, these are some questions you may want to look into so there are no surprises and increased costs AFTER you close on the home.

Please contact Chip Gibson or your Deland, Gibson representative with any questions.

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