Owning more than one home might initially seem like an unachievable goal but with more and more financing options and favorable tax strategies, it may be more attainable than you think! Yes, investing in real estate can certainly create a more diversified asset portfolio and provide you with a strong financial strategy but there are also lots of less tangible benefits to consider. Check out what we think are the top five reasons to consider a second home.
1. Enjoyment
You found a place you love and find yourself going back year after year. Why not consider making your favorite vacation spot an investment opportunity?
2. Family Connection
In this evolving world of working remotely from home, a second home can allow your family to create a new home base especially if you are having a hard time finding that work/life balance now that home is also your office. Having a home away from home can serve as a central place for family and holiday gatherings as well as just a getaway spot away from work where you are less tempted to finish that “one last email.” This time spent in a place where you foster more of a vacation mindset can really reinvigorate and strengthen family bonds.
3. Rental Income
Renting your second house can generate income that can be used to subside or even cover your mortgage and of course contribute towards paying it down over time. By selecting a home that you love and want to visit, chances are others will want to too! Maybe a home on the golf course or the beach suits your vacation desires or perhaps some fresh mountain air is more your speed. Whatever you are craving, there are others that are too. Or despite all of these factors, simply selecting a home in a popular travel destination will keep your reservation calendar full!
4. Retirement
Forward-thinking investors can capitalize on a second home purchase as part of a sound retirement strategy! Consider the possibilities of purchasing now and getting years of enjoyment out of your future retirement residence long before you leave the workforce! PLUS, don’t forget the added benefit of potentially having years of your retirement home mortgage paid down and/or subsidized by rental income!
5. Solid Investment
The best investment, without exception, is real estate! Real estate is a tax favored asset class, is a basic need that is always in demand, provides a hedge against inflation, has capital appreciation potential and can produce CASH FLOW! No other asset class gives you all of these benefits!
Now the question becomes, where to purchase? For some this is a natural decision based on a love for a certain region or area. For others, the sky may be the limit. Despite where you are in the process, enlisting the guidance of a professional REALTOR that specializes in investment and second homes will help you determine what the long and short-term goals of your purchase are…and then match a property and area to those goals.
You may be curious to know where most second homes are located and what kind of company you will be in when you become a second home owner. The National Association of Home Builders provides some interesting insight into this.
“According to NAHB (National Association of Home Builders) estimates, the total count of second homes was 7.15 million in 2020, accounting for 5.11% of the total housing stock. As of 2020, the state with the largest stock of second homes was Florida (1.04 million), accounting for 10.8% of all second homes. South Dakota had the smallest stock, approximately 19,225 second homes, among all 50 states. Half of the nation’s second homes can be found in eight states – Florida, California, New York, Texas, Michigan, North Carolina, Arizona, and Pennsylvania.”
If you are curious about joining the club of second home owners and want to explore your opportunities, as a Resort and Second-Home Property Specialist we would be honored to be your trusted guide. We can help you find the vacation property that can become your second home. Our expertise is finding the best homes, as both ideal places for you to relax and as investments.
While we specialize in the Arizona market, we also have a referral network of specialized agents that can help you no matter where you wish to invest.
I am not only a Resort and Second-Home Property Specialist, but am also a seasoned investor! We own a collection of long and short-term rentals and actively manage them. We know the ins and outs of investment property acquisition and ownership…we walk the walk and talk the talk!
My husband and I each have over 22 years in the real estate industry and have devoted our careers to the pursuit of using real estate as a wealth generator, as well as creating a family legacy that will endure long after we are gone.
The perfect real estate opportunity is out there…wherever you want to go! We would be honored to accompany you in your journey to explore real estate beyond just owning a home.
Your second home is our first priority!
