It may be time to ditch your current property. We’ve discussed all the reasons why this might be a good move. Why don’t you read ahead?
The House Isn’t Big Enough
Take a look at your home. Although you love it, it may not be right for you anymore. Your family may have grown since you purchased it. The space is subsequently too small.
There would be no privacy either, which could drive you and your partner insane.
You Can Afford Something Better
When you purchased the property, you and your partner were probably not making much cash – your budget may have been restricted. It’s been a couple of years and you make much more, so you can afford to buy the house of your dreams.
With a stable job, getting a second mortgage approved wouldn’t be hard. In fact, you could get a better interest rate, as your credit score has doubled or even tripled.
It’s Time for a Vacation Home
Instead of getting rid of your current home for a new one, you could have both. If you can afford it, it’ll be great, as the new house could be somewhere far away from where you live. Instead of paying for expensive vacations, visiting it during the summer or winter would be ideal.
The price of property differs per area. Look around, and you could snag a vacation home for not that much. This is especially true in countries where your currency might be stronger.
Why Not Make a Profit?
It’s common for the value of properties to rise over time. There is a lot that influences this. But most of the time, upcoming development in the area cause it.
You could buy a second house and flip it. It may be run down, so you’d be able to buy it for not a lot of cash. By renovating and redecorating, you’d raise its value, being able to sell it for much more.
This sum would be quite a bit if you heeded the above point, having bought it in an area with development projects in the work, only selling once they are done.
In line with the above point, buying a small apartment block would also be profitable. A commercial property mortgage could be taken to purchase the space. You’d have apartment that you’d be able to rent and make a continuous income. The cherry on top is the fact that commercial mortgages don’t have as high of interest rates.
Where Do You Live?
It might be time to ditch the house you’re in if you live in an area that’s becoming an inconvenience. It might be hard for you and your kids to get where you need to be. At the end of the day, time is money.
When you are researching the neighborhood, take note of how nearby highway projects will benefit your commute. You might be pleasantly surprised by the new home’s proximity to your workplace, children’s schools, and enjoyable activities is much better than from your previous location.
All in all, it’s clear that there are quite a few benefits of buying a second home. Keep these tips in mind if you’re planning to do so.