Owning a second home is only for the rich and famous, right? Wrong! With a little planning, some financial savvy, and an experienced real estate agent, buying a second home is within the average person’s reach. This is good news, as owning a second home has a number of financial and emotional benefits.
A second home can help you plan a seamless retirement.
As our working years wind down, we begin to turn our thoughts toward retirement. For some of us, the idea of living on a fixed income is stressful. Will there be enough money? Will you be comfortable? Will you be able to afford your home? For those who have planned ahead, one of those questions will already have an answer.
Buying a second home for your retirement while you’re still working is a great step toward long-term financial stability. You’ll be able to make a down payment and pay off a good portion of the mortgage while you’re still making a good income, and you’ll sleep easier at night knowing that your future is secure. There are also a few other benefits to buying sooner rather than later, such as investment property interest rates and more lenient qualification and down payment requirements.
A second home can be an extra source of income.
There are two ways to make money off a second home. As a general rule, property values go up and down, but in the long run they tend to rise. If you purchase a second home in an area that appears to be on the upswing, you can watch its value rise over time, increasing your investment.
To make your second home even more lucrative, you can also rent it out, either as a year-round residence or as a vacation home. When you’re ready to sell it, you’ll make money thanks to those years you spent making payments as well as the increased value. On the other hand, if you move into it yourself, you’ll be much closer to paying off your mortgage.
Of course, there are ongoing costs and risks in the above scenarios. As a landlord, you’re responsible for property costs, maintenance, repairs and upgrades. This means that a rental isn’t going to be a no-strings-attached influx of extra cash, but an actual job. Make sure you’re willing to put in the work and make the investment count. It’s also possible that the promising neighborhood in which you purchased your second home doesn’t live up to its potential. In that case, you may be facing a loss. If you’re hoping to make your second home an investment, proceed carefully, preferably with the help of an experienced realtor.
A second home can serve as a vacation destination.
Most of us dream of living at the beach or some other idealistic locale, but too often this just isn’t feasible. We’ve got jobs to think of, schools to attend, family we want to stay close to. We may not be able to live at the beach full-time, but a compromise is possible, especially if you buy a vacation home at the beach.
A beach house gives you the best of both words – a permanent residence in the city near your job and your family, and a getaway that’s ready whenever you are. Imagine having a place where your whole family can gather year after year, a beautiful space in a lovely location where you can make memories, celebrate holidays and share good times. It’s not just an investment in your bank account, but an investment in your family.
We hope this article helps you see the benefits of owning a second home. If you’re interested in experiencing these perks for yourself, contact Network Real Estate today. We’ll make sure your second home is our first priority.
Neal Johnson is a CMCA, CRB, CNE and GRI-certified, licensed real estate broker at Network Real Estate, which has exclusively served a high volume of property sales and purchases in the greater Wilmington area for more than 30 years. With offices at College Road, Historic Downtown and Pleasure Island, Network’s brokers are widespread and well-versed in this marketplace, making Network a preferred real estate company for first-home buyers and beyond.
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