If you have recently become a homeowner, you will know only too well the struggle that it can be. The process is often long and drawn out, and you may find yourself riddled with stress throughout the whole thing. Why, then, would you put yourself through it all over again by buying a second home? Many people consider one property to be enough at a time, given the responsibility that each individual house brings. But if you have been perusing the idea of property number 2 for a while now, it might be time to take the plunge and make a decision. However, owning more than one property certainly isn’t for everyone. Here are some pros and cons that may help you make that all-important decision.
The financial asset
Real estate is, of course, the most valuable asset a person can have. Even though buying a house is probably the only occasion where you part with such a vast sum of money in one go, you are pretty much guaranteed to make a return on that cash. Why? Well, because the housing market is now expanding at a rapid rate – so even if you don’t do anything to your second property, you can pretty much bank on the fact that it is going to go up in price as soon as you’ve signed on the dotted line.
Unfortunately, however, your second home isn’t going to run itself. There are all sorts of things that can go wrong with a property – whether you suffer a burst pipe, or if you are the victim of a break-in. Any issue such as this will need your immediate attention, so you need to be prepared to devote a certain amount of time to your second home – especially if you decide to rent it out when you are not using it.
You have a ready-made retirement house
Even if it feels like lightyears away, retirement will eventually be on the cards for you and your partner. When you are retired, you don’t have to base your location around your work or office – meaning you have much greater jurisdiction over where you can move to. For example, if you’ve always like the idea of cabins, why not move out to a more mountainous region and live in the peace and quiet?
As with any major investment, you need to be aware of the risks at hand when buying a second property. As unlikely as it is, the property market could suffer a major financial crash – or perhaps the area you bought your second home in suddenly becomes a crime hotspot. You need to have a plan in action of what to do if your property becomes a financial and emotional burden, as you may struggle to sell it in such a climate. Speak to some real estate professionals and get some official advice before you head into buying any kind of property you are not 100% sure about.