Uncategorized April 22, 2021

Thinking About Buying a Second Home? Why Now Is The Time.

I have many childhood memories of summer road trips to our second home in Cape Cod. Some we can (thankfully) laugh at 30 years later,  like the time my 6-year-old sister got her finger stuck in the hole of a clipboard during a late-night trip one year.  Slowly, it began to turn scary shades of blue and purple and there were no open businesses or hospitals in sight.  My panic-stricken parents finally pulled into a 24-hour gas station where the owner saved the day (and finger!) with a pair of metal shears.  Ah, the good old days before electronic devices served as road-trip entertainment.

Eventually these 6+ hour road trips became too much to deal with, and my parents traded the Cape for the Jersey Shore.  Manasquan was just an hour down the Parkway from Summit, and this new home quickly became the gathering place for family and friends — summer fireworks, beach days, BBQs — you name it.

We still have this family home in ‘Squan. I’m filled with nostalgia now as I watch my young niece and nephew, our next generation, playing and laughing in the sand as my siblings and I once had.

Purchasing a Second Home

Whether you want to buy a second home for fun family gatherings like we did, or turn it into a bountiful rental investment property (or both) — there are significant financial benefits to owning additional real estate.

Benefits

    • Build equity on your new home or property
    • Enjoy tax advantages that further reduce your gross income and tax liability
    • Earn passive income by renting out the property either by leasing or setting it up Airbnb-style
    • Create a hedge against inflation

Mortgage interest rates are still at historic lows due in large part to Covid-19. So if you were to purchase a second home right now, you could lock in fixed-rate, long-term debt to buy a financial asset that promises to rise in value.  While you frolic about on family vacations or hear the satisfying ding of monthly rent deposit notifications, your money is working for you.

Sure, the first year may seem expensive. But you’ll spend subsequent years reaping the rewards and feeling the sense of ease that comes with a smart investment.

Next Steps

If you’re ready to find your own summer vacation home and start creating priceless family memories (hopefully devoid of clipboard catastrophes), book a call with me here.