If you’re thinking of purchasing a second home, you’re not alone — owning a second home provides many homeowners with several benefits. Here are three of those benefits and a couple things to consider before diving into this type of investment.
As a real estate agent, you of all people should know how satisfying it is to own real estate property. All those years of working hard and saving up were definitely worth it, and now — as you lounge in your current home — you might want to think about getting another real estate property.
It might seem unnecessary at first, but a second home provides several benefits to you and your family in the long run. Here are three reasons real estate agents should get a second real estate property:
3 reasons to invest in a second home
According to the National Association of Realtors (NAR), 49 percent of vaction-homebuyers plan to use their property for vacations or as a family retreat. A second real estate property can provide all the recreation you need without going so far out of your way. If your second real estate property is a vacation home that comes with amazing amenities, then you can find entertainment and recreation without hassle.
Some real estate properties have game rooms, private courtyards, personal basketball courts, bars, theater rooms and more. You, your family and your friends can surely utilize these features, have some recreational time and bond with each other.
2. Second income
You can also earn extra income with a second real estate property. When you are not utilizing it for your own purposes, you have the choice to rent it out to other individuals or families as a vacation rental or a temporary residence.
NAR research from 2018 shows that 45 percent of property buyers purchased a second real estate property to generate income through renting. This is a very wise move as a homeowner as you can give aid to others while earning money as well. Aside from your regular job as a real estate agent, this plan can definitely help you provide for you and your family.
When you’re ready to live a nice and quiet life of retirement, your second real estate property can serve as your retirement home. You can then permanently relocate and live the rest of your life in your second home after selling your primary residence.
Another plan is to sell both your first and second properties and downsize to a smaller (but new) real estate property after retirement.
Other things to consider
Don’t be hasty when it comes to buying a second home. Before anything, you should stop and consider three things:
1. Financial stability
Only when you are in a financially stable position should you start looking to buy a second real estate property.
You have to anticipate how much it will cost you. Apart from the purchase price, there is also the mortgage, insurance, property taxes, maintenance costs and other expenses that come with acquiring a second home. You have to be ready to keep up with these expenses as time goes by.
If you have second thoughts, doubts, setbacks or shortcomings, do not try to buy a second real estate property yet. Wait for the perfect time when every odd is in your favor, and then open yourself to the possibility of acquiring a second real estate property.
2. Do your research
Do proper research before anything else. Look for the proper real estate that will suit your preferences as well as the different features and amenities of a real estate property that will suit you and your family. Do you want one with a driveway, or one with a detached luxury garage? Perhaps you want a property with a sparkling pool, massive bedrooms or a game room.
Know every feature, and prioritize which would be excellent for your family.
Your location matters as well, so research all about various communities. For example, Las Vegas has communities that can fit into various lifestyles. Look for a quiet and peaceful community or an active community with various social spots.
You can also consider real estate properties close to the beach if you want it for a vacation home or maybe somewhere near the countryside or the busy city.
You should also look for trusted financial advisers who can help you manage and look into your finances further. It is best to be prepared in every aspect.
Your current home might already have everything you need, but it wouldn’t be a bad idea to have a second real estate property. After all, there is a saying in real estate industry that goes like this: “Don’t have real estate property yet? Buy one! Already have one? Buy more!”