More and more potential buyers that are currently renting the home in which they live most of their hours and days are looking into purchasing vacation homes before they purchase a full-time primary home. Renters in metro areas are interested in purchasing homes where they can spread out and have a small getaway home for vacations while being able to benefit from homeownership on some level.
Some Buyers are Purchasing Vacation Homes Before Primary Homes
These types of second-home buyers are being drawn to country cottages and mountain cabins to enjoy any time they want while they continue to rent a property in the center of the city. In some cases, their search for a second home ends up being in a less competitive market than that of the market where they would consider purchasing a primary residence, or full-time home.
Some renters who have been considering renting for some time that are living in the center of the country’s largest metro areas are finding that the current market is hot and may still be a little too competitive for them right now to move into a primary residence, but they still want to take advantage of the perks of homeownership and the current very low mortgage interest rates.
This has led them to purchase a home in a locale that is a bit off the beaten path where they can get away and vacation, especially with the ability to work remotely in many job markets. Purchasing a home in a remote location for less money and less competition allows them to enjoy a vacation home while still building their wealth portfolio.
A “second” home, or vacation home can offer buyers that may be edged out of purchasing a full-time home where they want to live full time the opportunity and benefits of homeownership. Many financial analysts are seeing this thinking increase among those renting in big cities and think it can be a great way for renters to break into homeownership right now if they can afford to do so while still renting their current full-time residence.
Homeowners that are renting their first home/ primary home/ full-time home, but own a secondary or vacation home can still write off mortgage interest on a vacation home when it comes time to pay taxes very similar to the same way you would with a full-time home. Some buyers could also make use of the secondary home as a vacation rental while they are not using it.
The market for VRBO properties is very lucrative right now as more and more vacationers look to rent vacation homes instead of staying in a hotel.
Bottom Line, purchasing a second home before investing in a first one could be a creative and smart means for some renters to break into the financial benefits of homeownership.
For more information on buying homes in Snohomish County homes or real estate, start here by contacting me today.
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