If you’re a homeowner looking for the next step, then maybe buying a second home is right for you. A second home is a versatile investment that offers owners amazing lifestyle options as well as excellent financial opportunities.
Need more convincing? Here’s just some of the many benefits that come with owning a second home:
It’s a convenient getaway
The convenience of having a second home will take all (or some of) the stress out of vacation planning so you’re free to enjoy, rest, and relax. You can just pack your bags and head out whenever you want.
It’s especially useful for week or even month-long getaways because you won’t have to think about vacation rental prices.
Another big plus is having a place to store all your vacation items and gear. If your vacation home is by the lake, you can keep all your boating, fishing, and swimming equipment there. There’s no need to worry about forgetting something at home or losing an item during the trip.
A place to make memories
Unlike a vacation rental or a hotel, a second home is a place that’s familiar, comfortable, and yours. You are free to do whatever you want on your property, making it the perfect place for fun group gatherings.
Invite your friends and have a fun vacation or bring the whole family along for some quality bonding time. The memories you make with your friends and family is definitely something you can’t put a price on.
Get a head start for your retirement
When the time comes for you to leave the workforce, you’ll have a space ready for you to live out your retirement years. Second homes are usually located in prime destinations like lakeside areas and private communities with excellent amenities, making every day feel like a vacation.
Since you’re already familiar with the home and the community, it will also make for an easier transition to retirement life as well.
The tax advantages you get on your first home can also apply to your second home. This means you’ll be able to write off your second home’s mortgage interest and property taxes. Other deductibles can be taken out of your taxes, as well.
Potential investment property
Have your second home pay for itself by turning it into a rental property. The passive income generated by your investment property can make up for your second home’s mortgage payments, as well as maintenance fees. The monthly rent may also leave you with some extra cash left over.
If you don’t want to put your second home up for rent full time, you can also turn into a short-term vacation rental. This way you can use your second home for short getaways while still turning a profit. With the use of Airbnb, VRBO, and other rental sites, it’s easier to put your property up for rent now more than ever before.
Keep in mind that rental properties have their own tax scheme so it’s best to get a professional to help you. If you decide to rent out your second home for 14 days or less during a single year, then your rental income is tax-free.
Tips on finding the perfect second home
Know the area before buying. Location is essential to any real estate purchase. Choose somewhere with a cool and laidback atmosphere for the perfect relaxing vacation getaway or retirement lifestyle.
Check out the communities and research each neighborhood carefully. Talking to potential neighbors to see what they have to say about the area is also a good idea.
Consider all your housing options carefully. Buying a second home can be exciting, but don’t let that eagerness rush you into a decision. Take a step back and examine your options thoroughly. Figure out what you want in a second home and which amenities are most worthwhile.
Shop around for a mortgage. Always check in with different lenders when looking for a mortgage. Every lender has their own deal, each with its set of pros and cons. Looking at different loans will help you find the best deal possible.
Hire a local real estate agent. Get the best home buying experience with an expert realtor by your side. Find an agent who knows about your target communities and let them guide you during the buying process for the best results.