The Biggest Benefits of Owning a Second Home
Owning a second home, whether it be a vacation spot or an investment property, is a dream for some homeowners. According to the affiliated agents of Coldwell Banker Preferred, there are plenty of legitimate and financially-responsible reasons to make that dream a reality. Not sold? Read on to learn about the benefits of buying a second property and tips to make the most of this type of investment.
If you do your homework and purchase a second home in either a bustling city space or a popular vacation spot, your rental potential is very high, meaning your income from that home will be, as well. Coldwell Banker Preferred affiliated agent, Chrystal Warrington suggests, “Look for locations that offer beaches, golfing, shopping, water sports and other relaxation activities.” She continues, “Areas not too far from large attractions, like Disney World, Sea World or marinas, always see an increased rental rate.” If you choose your spot wisely, the rental income could pay your mortgage in full and leave you with extra cash each month. If you’re looking to stay a little closer to home, affiliated agent Kristin McFeely suggests the mountains. “The trend of city dwellers heading for the mountains or a lake region for a weekend getaway is catching on and the Poconos is a good option since it is close to Philadelphia,” she says.
Imagine packing up and heading out for a week or weekend of rest and relaxation any time you felt like it. With a second home, you can. Coldwell Banker Preferred affiliated agent Kristin McFeely can’t recommend it enough. “My husband and I purchased a second home on a small lake in the Poconos in 2016. Having the option to have a lovely little getaway, less than two hours from the city, or to entertain friends at any time is amazing. We absolutely love it,” she says. Better yet, choose your second home in a spot where you’d like to retire. When the time comes, you’ll already be settled in your space. As with all home purchases, take your time and don’t let the excitement of your dream destination distract you. Warrington recommends, “Learn about the safety of the region by looking at police reports and research the region’s hospitals and access to healthcare. And, always talk to the neighbors to learn more about the area.”
Investing in real estate, especially in and around Philadelphia’s hot market, could pay off quicker than you’d expect. “Property values in the Philadelphia area along the Main Line and Conshohocken are soaring. With local colleges, nightlife and good school districts, there’s always a pool of renters attracted to the region,” insists Coldwell Banker Preferred affiliated agent, Michael Eagle. “The rental market is stable and it provides a fixed return for investors,” he continues. To ease your way into the second home as an investment world, he suggests teaming up with an experienced real estate professional to help navigate the process and make sure you’re buying within your means. “You can even pay down the mortgage quicker if the rental income is greater than the monthly payment which in turn creates more equity,” he explains. Intrigued but unsure of where to start in the area? McFeely offers advice— “In my opinion, I have noticed that the areas with the highest rental potential right now are South Philly and Fishtown, but there are a few up-and-coming areas to keep an eye on like Kensington, Point Breeze, Brewerytown and Francisville.”
Ready to make your move? For more information about buying or selling a home in the communities of the Greater Philadelphia area and the Delaware Valley, visit Coldwell Banker Preferred online at www.coldwellbankerhomes.com/philadelphia.This is a paid partnership between Coldwell Banker Preferred and Philadelphia Magazine's City/Studio