The Benefits of Owning a Second Home

As the world emerges from the pandemic era and begins to look for a new normal, we’ve all changed the way we look at homeownership and lifestyle. More and more, families are forgoing exotic vacations and using the savings to enhance their home for staycations. In addition to the home improvement boom, the second home market has also exploded. Owning a second home was once a privilege for the rich and famous, but now even those with a modest income can purchase a second home.

There are some great benefits to owning a second home. The first is enjoyment. Many people buy a second home to get a change of scenery. With more companies offering a work-from-home option, spending winter in a warmer climate has become feasible for the average person.

There are financial advantages to buying a vacation home. A second home can help you save money on your taxes. The mortgage and property taxes of a second home can be deducted from your income in the same way a primary home is. The property can also be rented out while not in use to provide extra income or pay for the costs of the home.

Owning a second home can enhance the lifestyle of the family. Building equity in two properties will build wealth more quickly while providing an alternate location for work or fun.

Investment Rent or Flip

There are a wide variety of ways to invest in real estate; one can make money in any of these options, one can also lose their money. To be successful in real estate investing, it’s critical that you identify what skills you have and your tolerance for risk. Then choose a type of investment that works for you and repeat that model.

Investors can make great profits by both flipping properties as well as holding them as rentals. The difference really boils down to a few considerations. First, what kind of income are you seeking? Active or Passive? Actively buying, fixing and flipping properties is quick cash that requires careful timing and effort. Rental properties on the other hand offer passive long-term income which accumulates over time. Additionally the property value increases during this time. The downside is that one must invest time in property maintenance and tenant management.

The second concern is risk. Flipping a property is not traditional investing where one buys and holds an investment. Flipping is really speculation. When buying a flipper, one must carefully gauge the cost of refurbishment, remodeling and the cost of the holding time into the price valuation, then carefully market the home and realize the profit. Any number of variances can go wrong which could cause the value to drop and profits to reduce or even disappear, such as a delay in remodeling or a slow real estate market.

Both types of investments can bring nice profits. Determining what’s best for you and your talents is important in choosing the best option for your financial goals.

Let me upgrade ya!

Check out this new listing that just hit the market!! Click on The pic.

Check out this new listing that just hit the market!! Click on The pic.

Nestled in the beautiful tree lined & highly sought after University Park awaits this completely remodeled home offering endless luxurious comforts. A generous sized family room boasting custom built-ins, new fireplace w/ remote start, rich hardwood–like tile floors and French doors which lead you out to an inviting oversized patio offering an extended living space ideal for al fresco dining or relaxation around the outdoor fire pit while showcasing amazing park-like panoramic views. A chef-inspired kitchen, new stainless steel appliances, new cabinetry, soft close drawers & gorgeous granite countertops. Spacious bedrooms offer comfortable living for the entire family. Retreat to a private on-suite patio off of the secondary bedroom. Oversized master bedroom & spa-like bathroom have also been remodeled with granite counter tops, vanity, travertine flooring, and lavish walk-in shower. This turnkey property has it all with new windows throughout, new HVAC, new air ducts, epoxy flooring in the garage & pull down stairs to attic space & additional storage. Located within the highly acclaimed Irvine School District. The Terrace community boasts gorgeous greenbelts, tot lots, barbeques, swimming pools and spas, as well as a clubhouse. Centrally located in the heart of Irvine close to UCI, IVC, Irvine Spectrum, Strawberry Farms Golf Club, convenient shopping & recreational amenities nearby. Est. Tax Rate 1.03%, low HOA and NO Mello Roos. HURRY this won't last!