Perks to Buying Investment Properties
Even if you already own a home, your home is an investment…and a good one. If your finances allow, you may want to consider purchasing a second home. Before you shy away from this idea, have you researched the benefits to purchasing a second home or investment property? If not, All My Sons of Birmingham want you to be aware of how investment properties can serve you financially, adding some extra cash to your wallet.
Two reasons why homeowners should consider buying a second home are: to use for vacation purposes or as an investment property. Real estate is one of the safest investments that you can make and it will always benefit you, if you have the finances or resources to maintain it. If you are smart about where you buy, your second home can be a major money maker and return on investment.
If you like to travel, buying a second home in your favorite vacation destination can save you a lot of money in the long run. If you will be buying a second home as a vacation getaway house, consider your options between buying a home, condo, or townhouse. Although HOA fees may not be ideal, if you will only be visiting your investment property once or twice a year, the HOA fees may be cheaper than the upkeep costs of a home.
Whether you want to become a snow bird or not, having a home on the opposite side of the nation can not only serve as a great escape, it can also serve as a source of additional income. Yes, buying a second home will cost you money on the forefront; however, once you own it you can rent it out when you are not using it, covering your mortgage and utility costs. If the thought of renting your home out to strangers scares you, it does not have to. If you are smart about the area that you purchase investment property or a second home in, it will be appealing to renters and future buyers, allowing you to stress-less about a renter ruining your second abode. When a home has an ideal location, your renters are more likely to take better care of it.
When it comes to purchasing a second home or property, aim for areas that will always be appealing for future buyers. You want to make sure that if you decide to sell or circumstances arise where you have to sell, that it will sell quickly and you will either get what you paid for it back, or more. If you are house hunting in the mountains, a home with a great mountain view can increase in value by up to 60 percent. If you are looking for a tropical retreat for your second home, beachfront properties rarely ever lose value, and when the economy and real estate market are doing well, they actually increase in price.
Once you pick your location, it will be to your benefit to make sure that you purchase a second home that will be low upkeep. Keep in mind natural disaster factors for that area as well. If you are buying a vacation home on the coast, you should check to make sure that it has been built with materials that can withstand any inclement weather when the home is vacant. Make sure that it has hurricane shutters, hurricane-proof glass, a durable roof, and so forth.
Things to Consider When Purchasing a Second Home:
- Selling your current home to purchase two homes
- Buying a home that will be low maintenance
- Calculate how much it will be to rent out, even if you are not sure whether you want to rent it out or not
If you will be needing help moving new furniture into your second home, or if you will be relocating to your investment property and using your old home as a rental, local Baton Rouge moving companies can help package, load, store, and unload all of your belongings.