Home-buying Trends: Second Homes

The current housing market remains hot and despite the stiff competition for property, buying a second home is becoming more and more common.  And it’s happening closer and closer to where buyers already live.  There are several reasons why this is becoming more popular; whether it’s for a vacation getaway that is easy to access or for family use, there are some considerations that should be reviewed ahead of your exciting new purchase.
 
Establishing a second home nearby for vacation can be especially convenient for homeowners with young families.  Being able to drive to a second home for weekends or longer holidays makes it easy to be closer to home.  Having a second, established home also can take some of the chaos out of vacationing.  There’s no need to pack everything, and more time can be spent enjoying the actual vacation.
 
As most homes increase in value, it’s likely that buying a second home can be an investment for the future.  Should you need to liquidate assets later, or decide that you no longer need multiple homes, selling your second home could bring in substantial income. 
 
For some buyers, that second home may be for staying closer to elderly parents, children attending college or grandchildren. The market is also seeing buyers acquiring these nearby second homes as “legacy homes” to hand down to future generations, while staying near enough to maintain the home without difficulty. 
 
Remember, depending on the area, there may be tax implications to owning a second nearby home.  Often, tax rates are determined by the owner occupying the home for a certain amount of time each year.  It’s important to make sure that you understand these rules before purchasing. 
 
The housing market has seen a large increase in second home purchasing as a result of the pandemic, and with the uptick in employers allowing remote work, the trend of owning second homes is clearly on the rise. No matter the reason, and despite the intense competition for home buyers, it’s likely that the market for second homes will only continue to expand.
 
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