This time of year, we are all planning vacations. Well, most of us, anyway. (For some of us, this is busy season.) If you’re thinking of planning a vacation, and take a vacation or two every year, it can be a rather costly proposition. If you have somewhere you love to be, sometimes it makes sense to investigate a second home. Here are three reasons why investing in a second home can make more sense than plowing additional funds into a vacation every year.
1. One of the reasons that was buried in the first paragraph was the word “investment.” If you buy the right home in the right place, your second home can provide two things: equity and revenue. If you purchase a second home and are confident that the home’s value will increase, every monthly payment you make will increase your equity in the home. As well, in some locations you can use the property to generate income. Online tools like VRBO, HomeAway, and Airbnb make it easier than ever to find tenants for your property and generate income when you aren’t using it.
2. Retirement. If it is truly somewhere you enjoy, and somewhere you love to be, it may be somewhere you can retire. Consider this a way that you can make a down payment on your retirement, and when you sell your primary home, your retirement home is that much more affordable.
3. Vacation. As was mentioned in the first paragraph, there are important recreational aspects to purchasing a second home. If it is somewhere you truly want to spend time - and can envision yourself and your family members spending a few weeks there every year - it makes sense to purchase a second home as a vacation property.
Decisions such as these, to purchase a second home, are not to be taken lightly. Asking yourself questions about whether you can afford a property like this; if the area is truly somewhere you want to be five, ten, or twenty years later; and whether the property can be rented out to generate income; are all important checkpoints to consider. Of course, only you know the answers to these questions, but we are happy to help guide you to a logical conclusion surrounding a home in the Lakes Region or White Mountains of New Hampshire.
To learn more, visit WWW.NHLAKESHOMES.COM/BLOG.
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