For some people, buying a second house is a move that makes complete sense. For others, it seems illogical, even downright counter-intuitive to tie yourself down to another property while you're already living in one. Is there something that the second group of people is missing? The answer is: most likely. There are a lot of good reasons to want a second home, but we'll look at the four best right now.
Second Home as an investment
Property is one of the most sensible markets to invest in. Of course, just how profitable it will be will depend on how much work you're willing to do in improving the value of the home, where you buy, and how the market is doing at the moment. Houses are relatively trustworthy assets, meaning that even if the market is slow at the moment, you can rest assured that you can expect future profits when it takes its next turn. If you're willing to play the long-game when necessary, property can make for a great investment as homes are one thing that will never truly lose their demand.
As a source of income
The truth is that buying and selling for investment purposes works best when you're building a portfolio include multiple properties, however. If you're not looking to buy more than one home, then the most reasonable way to expect to get a profit back from the second home is to buy it for the purposes of renting. If you want to maximize your profits, you're best off skipping the letting agency and learning to take the responsibilities of the landlord yourself. It means taking on what is essentially a part-time job, but if you can find great tenants, it's a relatively easy one.
Vacations on demand
If you could personally use a second home, then that might be an even better reason than trying to make money from it. For instance, some people have their lives split between two areas, whether their job requires them to move or if they would prefer to live far from the city they work at when they get breaks. The reason that lake houses for sale are so popular is that people like having a place to get away to, as well. Vacation homes can offer you just the break you need from the everyday, often offering access to communities with much more to do than your usual residential areas in the city or suburbs.
Playing the long game
You might be content with living where you work for now, but what about the future? A lot of people would like to spend their retirement in relative peace and quiet, so your current home might not fit that definition. Rather than waiting until you're retired and having to set up a move in the moment, buying a retirement house for the future can save you a lot of hassle and moving out of the old home can make it a lot easier to sell when or if you want to.
There are other benefits to getting a second house that we could go into more detail. Little perks like potential tax benefits are just the cherry on top, however. If you're considering making that next big purchase, the four reasons above are the reasons you're going to want to.
You should also check out our Mortgage Payment Calculator
Another post you might like is “Real Estate Investing: Tips to get you started”
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About the PublisherBo Kauffmann is a residential real estate agent with over 18 yrs experience in helping buyers and sellers achieve their goals. Inducted into the REMAX Hall of Fame in 2010 and receiving the REMAX Lifetime Achievement Award in 2019, Bo has sold over 500 houses and condos in the Greater Winnipeg market. He is an accredited buyer representative (A.B.R.) and a Luxury Home Marketing Specialist. Bo provides exceptional service to First-Time Home-Buyers, Seniors looking to downsize and Home Sellers of all ages. He can be reached easily By E-Mail or call/text him Call/Text Here
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