If the thought of owning two houses feels like a pipe dream, then you are in for a pleasant surprise. Investing in another property is a big deal, but it is not exclusive to those who are merely looking to live large.
It might seem counter intuitive, but there are situations where it actually makes financial sense to invest in a second home.
There are many reasons why it makes sense to purchase another real estate property. It can be a way to access a more lucrative job. It can even be part of an inheritance plan for your future heirs. Another potent reason to consider buying another home is that it can be a way to generate income.
In a 2014 study on housing, it was shown that most Filipinos opt to rent, rather than buy, their homes because it is more affordable. Reinforcing the idea of a robust real estate economy, a more recent real estate forecast predicts continued expansion of development in places outside of Metro Manila.
For those who are interested in obtaining a second home, these reports are a one-two punch towards real estate opportunity. Newer developments tend to appreciate over time. You end up with something more valuable a few years down the line. At the same time, strong demand for rentals can provide you with the opportunity to generate income.
Assuming your bottom line signals an all-systems go for another real estate purchase, how do you ensure that the opportunity does not miss the mark?
Purchasing a second home makes use of most of the conventions you follow when buying the first property. Whether you plan to use, rent, or even resell the property, the home that you buy should be a a sensible purchase.
Some of the things to consider are quite practical, like being in a safe and convenient location as well as having a well-planned community space. The main idea is to find a place where you are excited to see a community grow.
However, the purchase of a second home does provide an advantage that the first property might not have. In this case, you can afford to take a longer viewpoint.
Instead of focusing on proximity to schools or jobs and other present needs, a second home can be a step towards achieving a future you envision. For example, you can invest in a more restful location like Laguna or Tagaytay to experience a more relaxed way of life when it is time to settle down.
At first glance, investing a second home might not seem practical. But, first impressions can be quite deceiving. With the right circumstances, it can be a sound investment. It can be both a tangible expression of your hard work as well as a means to achieve future goals.