A home is one of the greatest assets anyone can own – a second one is especially lucrative. Recently, significant changes brought on by the pandemic, including the rise of remote work, have caused more people to consider the perks of becoming multiple homeowners.
Here are some of the top life-long benefits of owning a second home.
Make it a Vacation Home
The highly-sought after vacation home is perhaps the most archetypical advantage of owning a second home – and for good reasons.
Some of the most affordable land in the US is in colder regions, which might be a paradise for some but not everyone. Maybe you are sick of the city and need to escape to the countryside? With two homes, you can rotate between locations that best align with your seasonal needs. Do you love to ski? How about hiking? Or relax at the beach year-round?
The best second home locations are usually places you couldn’t afford to buy your first house, but now that you’ve accumulated more resources, these spots are within reach.
Secure Incredible Economic Benefits
Currently, home equity is skyrocketing. As home prices continue to increase, multiple homeowners become that much more profitable. Through a second home, you can build your wealth and net worth considerably faster. Likewise, because the value of homes appreciates in the long run, partially or fully subsidizing the cost of owning a second home is a safe investment.
A second home is also an incredible retirement decision as it allows you to deduct your interest on your mortgage. Plus, an additional home helps you stabilize your housing costs and lock in your mortgage rate – that way, regardless of how rates will change in the future – your monthly payment will remain the same for many years.
Moreover, if you purchase a second home in a touristy area or major city, you can rent your home out to generate additional income.
Get Closer to Family
As your children age and move across the country for work or to find affordable places to live, your family can become dispersed. Buying a second home enables you to be closer to your loved ones, spend more time together, enjoy extended visits or witness significant life events. Plus, it allows you to help your children raise their children.
Additionally, a second home can be a valuable resource for your adult children. Today’s 30-year-olds have only a 50% chance of making more money than their parents – in 1940, children had a 92% of earning more than their parents. Passing your second home on to your children after you no longer use it gives them a tremendous advantage in our unfavorable and uncertain economy.
NMC Can Help You Buy Your Second Home
If you are ready to buy your second home, take a moment to speak with a professional real estate advisor – this can be a life-changing decision. Contact our trusted and skilled team here at NMC so you can explore your options and take the following steps for your home purchase.