The Benefits of Owning a Second Home

The Benefits of Owning a Second Home

While people think that owning a second home is only for the uber-wealthy, the truth is that many average-income earners own additional properties. While their reasons for owning a second home may vary, there are unique benefits that most people don’t realize. And owning one may be as simple as getting a cash-out refinance to buy a second home. By leveraging the equity in your current home, you may not even need to come up with any savings for the second home loan.

Permanent Vacation Spot

Where do you love to go the most when you take a trip? If you find yourself always going to the same destination, like skiing in Colorado, or relaxing at the beach in Florida, why not get a house? You’ll always have a spot to take a vacation, especially during high travel seasons. You also won’t pay the flex rates that come to hotels during the busy season. You can make sure your vacation home has the perfect pillows, blankets, kitchenware, and all the tools you need to ensure you have a great trip.

Opportunity To Earn Side Income

Want a side hustle? Own a second home. You can turn it into a long-term rental with a single tenant, rent out each room to a college student, or even turn it into a vacation rental. This gives you multiple options to earn money. If you’re okay with the unpredictable nature of being a landlord, the potential for earning big on a second home is there. With a home located in the right place and with the right business strategy, you can make money almost on autopilot and you can even reinvest the income in cryptocurrency and store it in your Bitcoin wallet.

More Tax Write-Offs

Leverage your assets and your expenses to your advantage. You can often write off the expenses of owning a second home especially if it’s related to work or business. A second home can help you come tax time. It’s important to work with a qualified tax professional to ensure all your expenses are accurately documented and that you can maximize the options available to you.

Gives You a Landing Pad for Business Travel

Some people travel regularly between two cities and honestly, this lifestyle can get tiring over time. Living out of suitcases in a hotel is not as comfortable as staying in a fully stocked home. Additionally, hotel costs can be far more than a monthly mortgage. Not to mention all the extra fees of eating out all the time. A second home in a city you frequent for business is the perfect option.

Investing for Retirement

Let’s be real here, being debt-free for retirement is critical. This includes your housing. By having two homes you can expand your options for retirement, but also have a home that will be paid off. A second home as a retirement investment can be used as your primary home later in a location where you won’t need to work anymore. It can be sold off later once it increases in value to put more money into retirement savings or it can be used to earn more income when you retire.

Being Able To Help People in Need

For those of you who want to help people in need, owning a second home is a good investment. You can offer reduced rents to struggling families, let a friend or family member live in your second home for free, and even generously donate time in your property to a non-profit organization in your area. Many people with a generous spirit love the freedom and flexibility that owning a second home can provide.

Gets You Invested in Another Real Estate Market

While you could own two homes in the same city, most people who buy a second home prefer to get one in a different location. This gives them the ability to invest in more than one real estate market. This is helpful during times when one market is up and the other is down. It makes it easier to accept a job in a new city because you already have a place to live. When you go to sell one or both of the homes you own, you can make your decision based on which one will earn you more profit.