While it might sound like a daunting task, it’s not necessarily the worst thing to do. In fact, it can result in multiple benefits that can help you in both the short and long-term. We’re talking about buying a second home.
Before you panic about the stresses of owning a second mortgage or having to pay off that huge debt, it would help to know that many perks come with it.
With the assistance of real estate agents Coldwell Banker Camrose, we highlight four benefits that come with buying a second home.
The Four Perks of Buying a Second Home
Pros: Rental Income & Asset Building
One of the biggest pointers of a second home is bringing in additional cash flow while building a strong asset base. Although you have to use the rental income to pay off the second mortgage (and in some cases, pay a little more into it), the added cash flow can generate revenue that can be used to subside your mortgage, or even more if you can rent consistently. It’s a smart way to set your future, so when the time comes, you’ll have income flowing into your pocket with an additional house to your name.
Pro: Potential Appreciation
A second home is a sound investment that will pay-off in the long-term. Homes always build up in value and rarely drop in value (unless pandemics or global crashes happen), so when you put down a second mortgage, that will come up good in terms of your investment portfolio. You’ll always find that your second property will add more to your future wealth.
Pro: Tax Benefits
Many tax perks come with a second home. If you buy a second home, you might be able to write off interest on your loan payments (if you exceed a specific amount of money). You can also be able to write off renovations and additional changes to your second home. If you plan to use your second home to generate rental revenue, you also may be able to deduct a portion of any rental-related expenses come tax season. So despite spending more in obtaining your second home, you can make money back from it through the tax.
Pro: Vacation Home
There’s nothing better than enjoying a vacation – to your own place when you want to! A second home can act as a vacation house, giving you ample time to enjoy your leisure time. You may find this more convenient than renting out homes or hotel rooms (which will cost you way more than expected) while finding it more convenient and comfortable to your liking (as you will be able to customize the place to fit your family’s needs and tastes. The best part? You have a second home where you can visit at a moment’s notice for a nice break.
Pro: Flexibility In Where You Can Live
Imagine if you need to move houses and need a place? What about if you’re undergoing renovations and need to move for a few days? Or in case you need a few days for yourself. That’s the perks that come with having a second home; it can come in handy when you have to move out for a few days for yourself. Even when you don’t live in the home, you have the flexibility to allow other family members to stay there. It’s a fantastic opportunity to make your life easier.
Start Your Search Today
Now that you can see the advantages of purchasing a second home, you can begin the process of finding one. Just remember a few key facts before you start your search:
- That you have the financial capacity to do it
- That you won’t overwhelm yourself with the added debt
- You get help from expert realtors to help you with your search and purchase
We wish you best of luck in your search!March 22, 2021