Purchasing a Second Home: Common Reasons for Considering It

While many have enough on their plate with ownership of a single home, some with the financial wherewithal may consider the purchase of a second home for a few different reasons. From generating increased income to potentially assisting with retirement, a second home may offer you several benefits depending on your situation.

At Primary Residential Mortgage, we’re happy to offer a variety of home loan options, including to clients who already own a home and are considering a second for a variety of reasons. Why might you be thinking about a second home, and what are some important factors to consider if you’ve decided to purchase one? This two-part blog series will go over all these elements and more, starting with common reasons our clients often go down this route.

Home for Parents

In many cases, individuals or couples consider the purchase of a second home to assist their aging parents. Many don’t want their parents to end up in a nursing home, but also may not have time to care for them in their own home — and this is where a second home might come in.

Many parents enjoy spending time with their family in this capacity, and you can spend extended visits to ensure they’re getting the care they need without having the burden of constantly caring for them. And if you purchase this home near your current location, you won’t have to travel far to see your parents whenever you wish.

Part of Retirement Planning

In other cases, a second home will actually be a strategic purchase that’s part of your retirement planning. For example, many younger individuals purchase a second home before they retire and sell it once retired to generate extra income. Not only does this allow you the freedom of traveling without having to actually own a travel trailer or RV, but also gives you an investment to watch and potentially grow over time.

The best part is, if your home isn’t technically for sale, it can’t dramatically affect your credit score when you apply for a second mortgage. This will save you from the struggle of trying to sell your home in a poor market and potentially having trouble finding lenders who will offer a traditional mortgage in this situation.

Trips and Vacations

For people or families who like to travel to the same place for a yearly vacation, purchasing a second home in this area can be an excellent investment. Not only will you have a place to stay free of charge, but you’ll also help strengthen both the economy and overall experience for everyone by increasing tourism in this area.

If you plan on living near your second home most of the year, it’s important to consider which community is best suited for this lifestyle. You might also want to consider how much you’d like to rent your home out versus using it exclusively for your own family. Making the right choice now could open up several doors for your second home down the line.

For more on why you might consider a second home purchase, or to learn about any of our mortgage programs, speak to the staff at Primary Residential Mortgage today.

*PRMI NMLS 3094. PRMI is an Equal Housing Lender. Some products and services may not be available in all states. Credit and collateral are subject to approval. Terms and conditions apply. Programs, rates, terms, and conditions are subject to change and are subject to borrower(s) qualification. This is not a commitment to lend. Opinions expressed are solely my own and do not express the views of my employer.