4 Benefits of Owning a Second Home

Do you dream of owning your own mountain getaway…a home with a beach or lake view…or the added income from a rental property? Many homeowners feel that owning more than one home is limited to only the wildly wealthy, but this is not always the case. Let’s look at 4 benefits of owning a second home and how your dream could become a reality. 

Building Wealth

Not sure what to do with the second home but want to take full advantage of the wealth-building opportunities? Many are turning their second homes into Airbnb or VRBO rentals. Trends show that many vacationers are preferring to rent homes over hotel rooms. Renting out your home as a host can be a lucrative business opportunity. Both rental sites allow you to set the dates you allow renters to stay in your second home and offer protection from damages. 

Another wealth-building benefit of owning a second home is the option of renting. Rental income could cover the cost of the mortgage and potentially additional income. You could upgrade to a newer home yourself and keep your current home as a rental. Keep an eye out in your own neighborhood for potential second homes that could be rented for easy nearby management. 

With the rise of home equity over the past year, many homeowners now find themselves with the option of purchasing a second home. Corelogic reports that homeowners gained an average of $56,000 in home equity in the last year. If you are in a position to purchase a second home, you can take advantage of this continued growth in home equity also. Home prices are predicted to continue to rise so the equity from both your current home and a second home will both contribute to building your wealth. 

Family Focus

Imagine the memories you and your family could make spending time together at the family lake house, the family beach house, or the family mountain cabin. Consider purchasing a second home in your favorite vacation destination. Whether it is the mountains and hiking in Mentone, Alabama, fishing or tubing on one of Alabama’s beautiful lakes, or sunbathing down on the white-sand beaches of Gulf Shores or Orange Beach, a second home would be a getaway you and your family could enjoy for years to come! 

The lockdown re-affirmed the importance of seeing family and friends. Many homeowners chose to relocate during this time to ensure that they could spend their valuable time with children, grandchildren, and other loved ones. Owning a second home would allow you to have the best of both worlds. You can be closer to those you love most along with the privacy of your own home. Enjoy longer visits and never miss another birthday, graduation, or holiday again. 

Enjoy Different Weather and Activities

Alabama is a beautiful and diverse state with all kinds of activities, climates, sports, and cultures. Why not take advantage of all Alabama has to offer by purchasing a second home in an area you truly enjoy spending your time in? Since many are continuing to work remotely they are no longer so closely tied to a certain zip code. Find a second home in an area that eases your stress or offers activities that you enjoy most. Enjoy quiet country living? Find a second home a little farther from town. Enjoy the hustle and bustle of city living? Find a second home nearer to city life. 

Do you have children attending college in another town? Consider owning a second home near their campus and allow them to live there during school. You have the option of roommates to help cover the mortgage and you will have somewhere to stay when you visit. After graduation, the home could become a rental or Airbnb, or the first home for your kids to rent from you!

Another perk of owning more than one home is taking advantage of a warmer or cooler climate! Do you love the mild summers where you live but find the harsh winters less than pleasant? Do you enjoy the warmer spring, summer, and fall but miss the true cold snap of winter? Purchase a second home in an area with a preferred climate!

Lock in the Best Rates

If you are considering owning more than one home, now is a great time to make that purchase. Interest rates are lower and that, combined with your rise in home equity, put you in a great position to make the purchase. Interest rates will increase at some point so take steps now to lock in these great rates. Locking in rates now ensures that no matter what interest rates are doing in the future, your payments will remain consistent for the next 15-30 years! If you are on the edge of deciding to purchase a second home, the best financial decision with regard to the real estate market is to take advantage of today’s rates and equity. 

Method Mortgage is Your Smartest Way Home

Whether you are looking for a vacation getaway for you and your family, increased income via a rental property, Airbnb, or VRBO, or simply looking to have a choice of scenery around you, our lending professionals at Method Mortgage can be your friendly roadmap when taking the steps towards owning a second home. We can help you make the best decisions and close on your second home as quickly as possible. Reach out to us today. Method Mortgage is your smartest way home!