What you need to know
People have various reasons for wanting to buy a second home.
Contrary to popular beliefs, it not a reserve for the high and mighty and it doesn’t have to be raining money on your end to buy a second home.
“Mimi Ni hustler,” is a common phrase you will come across in any social gathering.
The good news for the Kenyan hustler is that Kenya Homes is here to walk you through the journey. Buckle up.
More often than not, buying a second home simply involves weighing the pros and cons and asking yourself pertinent questions.
Why second home? You already have a home
Defining your goals is a crucial aspect if you want a second home.
Unless you have a bottomless pit of money and are fabulously wealthy, you cannot buy a second home for the sake of it. Only certified home collectors do that.
You need clearly defined reasons for wanting a second home.
Are you looking for a sound investment? Trying to get a head start on your retirement home? Are you interested in having an upcountry home far away from the city life?
These are the relevant questions you should ask yourself to help you decide if a second home is right for you.
Hire a real estate agent
Buying property for the second time demands that you hire a real estate agent.
For someone who is not familiar with the fluctuating trends in real estate, it is impossible to gauge whether the housing market is cheap or expensive as the information is not always clear. A realtor will help you with customized leads that suits your specifications and budget.
Budget is a whole other entity and we will get to that in a few.
An agent will also be able to give you accurate, up-to-date information about loans and interest rates. For example, you can probably expect a more expensive mortgage, with a higher interest rate, regardless of your credit history.
It is worth noting that a second home usually just costs more to secure.
No impulse buying
I cannot emphasize enough on the importance of thinking with your head and not your heart. Buying a second home should be viewed as a substantial investment and due diligence has to be done.
Any worthy investment ought to appreciate in value. Look at whether the locality of the property is set to grow.
For most Kenyans, their sole purpose is to rent out the investment for as long as they are not living in it.
Before deciding to buy a property in a certain location, consider renting a house there to establish whether buying in that area is a sound idea.
Can you afford it?
Since this will most likely be your second mortgage, expect to pay a higher interest rate on it, and possibly qualify for less. After you have your total budget fixed, set aside money for a down payment.
It is a smart investment, but it is not child’s play. Potential lenders are likely to sideline you because they know that there’s a higher risk of defaulting when your primary residence isn’t at risk.
To be on the safe side, have an experienced realtor to help you dodge the bullets that come with buying a second home.