Buying a second home in another city

Buying a second property for profit or leisure

Are you working in another city than the one where your partner work? In another town than where your home and family is located? If so you might find that you spend a lot of time and money living in a hotel. You might spend more time in hotels than you do at home with your family. If this is the case, then the best solution is to try to find a solution that allows all of you to live in the same city. This can be achieved by you finding a job in your home city or buy your partner (and family) moving to the city where you live. This is far from always possible. It is common that neither partner can find a good job that allows you both to live in the same city all of the time. If this is the case, then you will need to try to make the best of the situation.

Respect your partner

new yorkThe first thing you should think about if you find yourself in this situation is never to try to force your partner to move to the city where you work. This is true even if you make a lot more money. Never make your partner feel that you think his or her career is less important than yours. Doing so will cause them to resent you and can cause a lot of stress in your relationship. This is true even if they decide to move with you. Your partner will not forgive you for forcing them to give up their job.

Make sure that you try to find a solution that suits both of you. It is possible that your partner wants to move to the new city. The city might offer them the chance to find a better job or to study. It is imperative to make sure that it is your partners choice to move. Not something they feel forced to do.

If neither of you wants to try to find a new job, then you should try to make the best of the situation. It is possible to live in different cities during the weeks and still have a great relationship. This is especially true if you devote the weekends to each other.

How long do you see yourself working in the city

Always consider how long you think you will be working in the city where you are considering buying a house. It is not a good idea to try to buy a second home in a city where you will only live for a fixed period. It is usually not worth buying a home in a city unless you expect to be working in the city for at least 18 months. If you are going to live more than 3 months but less than 18 in a city then the best option is often to ask your employer to rent an executive rental for you in the city. This is cheaper than a hotel room and more like a home.

Do not ask your company for an executive rental if you work in their offices and if you applied for the job knowing that you would work in the city. Only ask for an executive rental if you have been sent to the city by the company after your employment began.

If you are self-employed then you need to find your own accommodations. An executive rental can still be a good option. An executive rental is often more expensive than regular apartments but cheaper than hotels.

How much money can you save

How much money (yours or your employers) are you currently spending on your accommodation each month. The more money you spend on your housing the more money you can save by buying a house or an apartment in the city. In some cases, it might be cheaper to keep living in hotels. Always ask your company how much they pay for your accommodation. It is not uncommon for companies to pay a higher rate than that you can find through websites such as hotels.com.

The convenience of having your own home instead of living in a hotel can also have a value. Only you can decide how much this convenience is worth to you. In this article, we are going to focus exclusively on the economic benefits of getting a second home.

If your employer is currently paying for your accommodation, then you should ask them if they would be willing to keep paying you the same sum they are paying for your housing if you purchase a home in the city. Some employers will be ready to do this; others will not. If you work for an employer that is unwilling to pay the money to you if you buy a second home than it can be costly to get a second home. If you live in a hotel, then your employer pays everything, if you live in a second home than you will have to pay for everything yourself.

If you are currently paying for your accommodation yourself than this is not an issue you need to consider.

When you know how much money you spend on your accommodation each month or how much your employer would be willing to pay each month, then you know how much you can spend on a second home.

It is common that accommodations cost $4000 or more a month if you live in another city. $4000 a month is based on USD 200 a night. The cost can be higher or lower depending on where you work.

Can you find an apartment for rent that cost less than $4000 a month? Can you find a house to buy where the monthly mortgage would be less than $4000?. A monthly mortgage payment of $4000 allows you to buy a house costing around 700 000. Enough money to find something in most but not all cities. You also need to consider if you can afford the down payment on the house. If the answer to these questions is yes and you expect to work in the city for at least 18 months, then it can be a good idea to buy a second home.

Doing so can be very profitable since a large part of the mortgage payments will be used to pay down the mortgage and increase your equity. Equity that you can unlock when you sell the house.

Remember that a second home will bring other costs than just the mortgage. You will also have to pay for basic services, Internet, electricity and so on.