The Perks of Owning More Than One Home
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. It is something many families dream of – Owning a small cottage by the lake, a cabin in the mountains, or a beach bungalow they can visit on long weekends, during holidays, or for extended summer vacations.
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 greater flexibility.
Make Sure Your Finances are in Order
If you are thinking about purchasing a second home, before you make a move, here are some very important considerations:
- Will you pay cash for or finance your vacation home?
- Is the mortgage on your primary residence is paid off?
- Are you saving at least 15% of your income for retirement?
- Are you prepared for a “rainy day” financially?
- If you have children, are you already saving for their college education?
If you are aware of the financial responsibilities of paying for and keeping up a second home, and you choose to buy over renting one, the rewards can be great. Here are just a few of the perks you’ll enjoy, and how owning a second home may be a great decision for your lifestyle and your future.
Enjoy a Change in Scenery (or Weather)
When you have two homes, you can alternate between them as the weather changes or as you crave different scenery. Do you want to live in an area with a particular season? 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.
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.
Be Closer to Loved Ones
The pandemic has also reignited the importance of being near 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. This makes it easier to see your loved ones but still gives you your own dedicated, private space so you can be nearby for major life events or longer visits.
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.
Talk to Oz Lending
Having multiple homes has considerable benefits. If owning a second home is something you’re interested in, contact Oz Lending to explore your options, discuss the benefits, and take the next step toward owning your dream vacation home.