Many things have changed over the past couple of years, and real estate is no exception. One impact is an increased desire to own more than one home. According to the recent Luxury Market Report from Luxury Home Marketing:
“As trends such as remote working and flexi-hours took hold in 2021, so too did the flexibility of relocating as well as the growth of second homeownership.”
This may be because the pandemic has altered how we think about our homes. Where we live has become, more than ever, our safe space and our getaway. And with the rise in remote work, more people are reconsidering where they want to live and buying second homes to give them even greater flexibility. If you fall in that category, here are just some of the many perks you could enjoy, and how owning a second home may be a great decision for your lifestyle, your loved ones, and your future.
Build Your Wealth Faster
You may have heard that home equity is skyrocketing, thanks to ongoing home price appreciation. CoreLogic reports that the average homeowner gained $56,700 in equity over the last year. With home prices projected to continue rising, if you purchase a second home, you could benefit from rising equity on both properties to build your wealth (and your net worth) even faster.
Your Loved Ones Could Benefit
The pandemic has also reignited the importance of our loved ones. One option worth exploring is whether you want your second home to be near the people who matter most in your life, or in a place that allows them to visit you more freely and safely. This makes it easier to see your loved ones but still creates a dedicated, private space to facilitate relaxation, major life events, or longer visits.
Build Your Legacy
Purchasing a Legacy Property to keep in your family and pass down for future generations is also something that you may want to consider about a second home purchase. In 2021 we hosted a webinar with expert guest and attorney, Mark Kellogg, regarding the topic of protecting such Legacy Properties. Click here for the necessary legal steps Mark advised to help protect the future of your property’s legacy for many generations to come.
Lock in Your Expenses
Buying a second home today and locking in your mortgage rate may be a good option if you’re looking to stabilize your housing costs for the long haul. If you’re approaching retirement or are looking to use your second home as your permanent residence in the future, buying that house now with today’s rate and price may be a good financial decision. That way, no matter what happens with rates and prices in years ahead, your monthly payment is locked in for the next 15-30 years.
Jeremy, Kilbourne, our local mortgage expert and Lead Loan Officer at Arch Mortgage North, adds this financial food-for-thought:
Just like your primary residence, owning a second home can provide you with some tax benefits you may not have been aware of. If buying a second home puts you over the $1 million debt threshold, you may be able to write off all of your interest on your loan payments.
Enjoy a Change in Scenery
When you have two homes, you can alternate between them as you crave different scenery. Do you want to be able to escape to an area with a particular scenery or body of water? Would alternating between a resort and a suburban setting be ideal? With two homes, you have those options. Being able to move between homes based on which location best suits you at the time gives you added flexibility and variety that can help increase your happiness.
Bottom Line
Having multiple homes has multiple perks to consider. If owning a second home is something you’ve been dreaming about, let’s connect today to talk through your goals, explore your options, discuss the possible benefits, and take the first step toward turning your dreams into a reality.
