Buying a second home is one of the biggest investments that many families have been making over the past several years. Many see it as a great investment and way to increase their overall portfolios. But is buying a second home for you? Like with everything, there are a number of pros and cons that come with buying a second home, and if you’re in the market, there are a few things you should know about investing a second time in Smith Mountain Lake real estate:
Pro: Money Making Potential in Smith Mountain Lake Real Estate
One of the biggest reasons that many decide to purchase a second home is for it to become a source of secondary income, and times have arguably never been better to do so! A study was conducted by the Pew Research Center in 2016 that showed 36.6% of all heads of household in the United States rented their home, which equates to about 43.3 million Americans. This percentage and sheer number of renters has never been higher, and so it’s a phenomenal opportunity to rent your secondary home and make some additional cash while you’re at it!
Con: Additional Maintenance Costs
One thing many people who are buying a second home for the first time overlook, especially if they are planning on renting out the property, is the additional expenses that come with home maintenance—especially those you may not normally have at your primary home! For example, you may never think about having a landscape at your primary home because you do all of the work yourself, but if you’re away from your second home for any significant amount of time, you know that it will take some work to keep it looking its best, thus an additional maintenance expense for a landscaper. Issues such as this, traditional maintenance, and god forbid serious issues such as the roof needing to be replaced or a pipe bursting are all additional maintenance costs to keep in mind.
Pro: You Get to Pick Your Perfect Vacation Location
There’s a certain comfort that comes with owning a second home, especially when your primary reason for purchasing is for vacationing, as you can pick the exact location of your vacation spot whenever you’d like! Say you know this perfect area of Smith Mountain Lake that you prefer to vacation at; it’s quiet, the sunrises are perfect, and the fish are always biting out on the water. Why not purchase a second home right in that area so you can visit any time you like? That way you don’t have to worry about the hassle of finding a hotel or home in the area at the time you need – just go when you want to!
Con: The Feeling of Inflexibility When Planning Vacations
This is an issue that comes up more than you think! Purchasing a second home is a big investment, both financially and with your personal time, and this pressures many homeowners into feeling that they have to stay at their second home to justify their purchase. This can lead to a significant feeling of inflexibility when planning your vacations every year, as many feel they have to stay at their second home either a certain amount of times or for a certain length of time to feel better about their purchase.
Buying a second home can certainly be both a scary and exciting time, and so if you need any help or guidance, know that Smith Mountain Lake Properties is here to help. Our world-class customer service team is ready to assist you with any questions you have about Smith Mountain Lake real estate, so don’t hesitate to contact us today!