Are you wondering whether buying a second home in 2022 is something you’d call a good investment? If so, you’ve come to the right place. Anyway, it’s no wonder folks have second thoughts about buying a second home this very year since last year was not such a good one for buyers. The prices were, well, not so attractive, to say the least. So, has something changed in the meanwhile? That’s what we’re about to consider. In the text you’re about to read, we’ll show you the reasons to buy a second home in 2022. Don’t worry, as they’re all pretty convincing!
1. Once retirement hits…
That’s right, buying a second home might just be an ingredient of a solid retirement strategy. Here’s the thing: once you buy a second home, you’ll be able to remodel or repair it to your pleasure. Also, you might even make some money by renting it out to other folks, either as a vacation rental or simply as a place to live. Our suggestion is that you opt for a home surrounded by beautiful nature. Therefore, the first option we’ve mentioned (owning a vacation rental) is the ideal one. Once retirement hits, you can simply relocate to your second home and sell your old place. All in all: you’ll guarantee yourself an ideal country place to enjoy the so-called golden years.
Also, since this is 2022, there’s a good chance that homes located outside the big-city gates will become more appealing as time goes by. Therefore, even if you don’t want to switch places, you might be able to get a solid ROI (Return On Investment) for your vacation rental.
2. You’re able to deal with a mortgage with monthly checks from your tenants
No matter the current state of affairs in the real estate market, one thing stays the same: you’ll be able to rent out your place and cover mortgage payments with monthly checks from your tenants. Someone else will buy the home for you or, at least, chip in on the sum without enjoying ownership rights. So, if you’ve got the funds to buy a home while the prices are a bit high, your tenants will deal with a good portion of the sum.
3. What about tax?
We’re sure that you know owning a primary residence is a great way to obtain some tax benefits. However, did you know that owning a second home has benefits of its own? Here’s what’s up: if purchasing an additional home puts you over the $1.000.000 threshold, you might be allowed to write off all of your interest on loan payments, which is quite nice. Additionally, if you’re planning to use your home number two as a vacation rental, you’ll also be able to write off a portion of any rental-related expenses once tax season arrives at your doorstep. All in all: this very year might be the best time to do this.
4. Buy yourself a nice place to get all the family together
One can say that nowadays, family ties have become thinner than ever before. However, at the same time, one shouldn’t lament the loss of traditional family ties and values but instead do something nice about the issue. Buying a second home might guarantee you a place that will host the whole family over the holidays, a perfect beach vacation, or simple gatherings. If you’ve got a large family, there isn’t a better way to get everyone together. You can even make a tradition out of it. A tradition that you can keep and pass down to future generations.
5. Anyone up for some vacation home exchange?
Owning a second home in a tourist location will most probably give you access to other vacation homes in the area. How’s that possible? Well, because these homes are located in places that folks like to visit, they’re in high demand all of the time. Therefore, other vacation homeowners (from other regions and places) might want to give your place a try in exchange for theirs. This kind of action is widely known as home exchange. You can visit some places you never thought of visiting and form some long-lasting friendships. Anyway, there you have another one of the reasons to buy a second home in 2022.
Oh, and here’s a little piece of advice: whatever you think of the place, there are some things to keep to yourself, just like you wouldn’t rudely comment on the furniture (“we’ll probably feed it to flames”) in a home that you’re looking out to buy. It’s just plain old modest human behavior.
6. The prices are likely to go up
Okay, so we might’ve gotten a bit carried away with the possibly overly sentimental tone (having the whole family together over for the holidays, forming friendships with other homeowners, etc.). Let’s try to balance this article out and talk about some business, too. Anyway, the predictions look good for homeowners in the next couple of years. The prices are likely to go up. The percentage we’ve heard about isn’t high, but still – we’re talking real estate, even half a percent means a lot here. Therefore, this might be the best time to purchase a second home before the prices reach even higher levels. Not to mention that you’ll be able to sell the place for more money in the future. Keep in mind that this info doesn’t magically apply to every real estate market in the US.
7. After all, it’s a safe investment
Did you know that property investments generally accumulate better ROIs than other assets? This advantage is more emphasized if the property enjoys a lovely location (such as Nashville, where all the folks are moving now). Anyway, since the appreciation of the value of a single property over time will most likely cover the rise in inflation, the whole thing about buying a second home seems a lot safer. And, of course, if you were to, unfortunately, end up in some financial trouble, you can always sell the second property to cover your obligations.
These were the reasons to buy a second home in 2022. Hopefully, this option of purchasing a property this same year seems more probable once you’re equipped with this information. We’re guessing that you can do this on your own, but it might still be best to work with an experienced realtor. You’re better off safe than sorry!