This is the right time if you are planning to buy a second house. The market is at a low and could benefit the owner greatly. This post will discuss some of the advantages and disadvantages of owning a second house.
Profit – While most asset values fluctuate with time, vacation properties hardly do. The trend with them is thatthey usually appreciate because they are situated in popular neighbourhoods. It also depends on the fact that there is limitation geographically – only so many houses can be made on the shores of the beach.
Tax benefits – Many people use their vacation home as a relaxation spot. They do not rent it out. However, if you charge rent for no more than a couple of weeks a year, the property taxes and the mortgage interest will be deductible.
An additional source of income – You can put up your vacation home up for rent whenever you are not using it. It will be a steady source of income. Rental charges differ with the season, climate, and the popularity of the neighbourhood.
Early retirement plans – Every place has its benefits and drawbacks. However, if you choose well and purchase your retirement home early on, you will have the peace of knowing that. It could be in a place which helps you relax and gives you respite from your primary property.
Get Access to other vacation homes – Since most vacation homes are in popular areas like resorts, by the sea, or in the mountains, people are always attracted by nature and come for a visit. Owners of vacation properties in the area can arrange with other owners for a temporary house trade which would be mutually beneficial.
While there are plenty of people who are looking to buy a second home, it is not a good idea for everyone. Despite the numerous benefits of owning a second (vacation) home, there are also drawbacks to it.
High purchase cost – Vacation homes are bound to be expensive because of their location. Most also expect the place to be really good so that they can have a good time when they come over for vacation. This pushes the cost further up. Not only this, but the house will also need to be furnished and owners usually prefer to buy everything new.
High mortgage costs – The down payment percentage is very high on a vacation property as are the mortgage interest rates.
Forced visits – Since you might be paying quite a lot of money every month towards your second home, you might feel that you need to make many visits in order to justify the purchase. The idea behind purchasing should be that you should enjoy it even a decade later.
Maintenance and other costs – As the owner, you will be responsible for maintenance and other costs. You will have to fix the water pipes, the roof, and any electrical problems that may crop up.
Take a look at the above-mentioned advantages and disadvantages before you rush into buying a second home. If you would like more information, get in touch with Amina Sai today to find your dream property!