Why is it Important to Own a Second Home?

Importance of Having a second Home

Owning a second home in the Philippines does not mean it is only for the well-off individuals or families. Today, a few of its importance is seen as someone’s fulfilment or need.

At this time, where a lot of vacation plans and travel goals have been put on hold due to the pandemic, we can see the importance of having a place where you can enjoy and relax away from the busy urban environment.

More than the vacation purposes, owning a second home has a few other benefits that a few have already known but in this article are brief points you can take into consideration why you need to plan on investing in a second home in the country.

Income Potential

Owning a second home gives you big opportunities including maximizing your financial income. Buying or owning another place to stay or call your own can place you to an opportunity of utilizing your property for passive income generation through renting it out as a vacation or transient home.

In addition, renting out your property short time can make the property fully increase its income potential compared to a long-term type of leasing contract where income is fixed during the period of occupancy. 

Income Potential with the use of Second Home
Income Potential with the use of Second Home | Photo from Volha Flaxeco in Unsplash

On the other hand, you may also sell your other property after its value appreciation. Buying and selling of properties is also a common practice among brokers or real estate investors. You earn income when you re-sell your property along with the current market value versus the previous price of acquisition.

Tax Advantages

When you start to lease out your second property then you will be earning additional profit. The amount you will be earning from the rental business out of your second home may help you finance some additional costs or expenses you must pay which include utilities, maintenance, bank amortization, and as well as real property tax.

Meanwhile, if you will not be leasing out your second home then your tax may be lesser as you can treat it with the same taxation cost as your primary residence.

Tax Advantages using your Second Home
Tax Advantages using your Second Home | Photo from Kelly Sikkema in Unsplash

More Family Time

Buying a property for Filipinos generally entails a purpose of having a shelter for the family or a starting family. If one family does purchase another one it might be for a vacation house. Hence, having a second home usually means that you would want a place where everyone in the family can chill, relax, and hang out.

A few second homes are usually located in the suburban or countryside areas, where fresh air and nature are felt. Thus, owning a second residence for vacation will give the sought-after quality time for the family.

More time with the Family with a Second Home
More time with the Family with a Second Home | Photo from National Cancer Institute in Unsplash

Diversify your Investments

If you are a budding property investor, then purchasing and owning multiple investments is nothing new but the option to buy a second home rather than treating it as an assortment of your investment will make your portfolio more diverse.

You get to have another home and not an investment in essence because you are planning to live in it also. However, if you are a thriving investor then having a real estate purchase secondarily can make the whole portfolio of your investment a variety, you may have stocks, pieces of jewelry, and now you got a new property or home.

Diversify your Investments with a Second Home
Diversify your Investments with a Second Home | Photo from Spacejoy in Unsplash

Retirement Home

Second homes are also an option to have if you are close to the retirement stage from your professional career and retirement homes are usually not planned out. But if you have or plan to purchase a second home then that will get you covered after retirement.

Somehow, the best retirement homes are usually condominiums where you get to have lesser maintenance or upkeep with its small-spaced area. Moreover, having a second home for retirement still need some planning because you might need a place to stay where convenience and accessibility toward seniority needs are closer such as pharmacies, malls, groceries, banks, hospitals, etc.

Retirement Home
Retirement Home | Photo from Spacejoy in Unsplash

Easy Switch

There are plenty of reasons why people usually move out of their place that is why it is also essential for some families to have move-out or transfer options. The solution is to own a second home where you can easily relocate or transfer.

Somehow, security, work requirement, health, and medical needs are a few of the most common reasons why people usually transfer from one place to another and owning a second home is usually more practical than renting out a new home.

Easy Switch with a Second Home
Easy Switch with a Second Home | Photo from Spacejoy in Unsplash

In the longer period, renting out a place to stay may not be practical when you have other finances to take care of like studies, food, and other utilities. Thus, planning to buy another home can be beneficial in such emergencies or demands for relocation.

Private Space

A few people will always value independence and solitude that is why moving out from your parent’s or guardian’s home is an idea you will love to consider. Owning a second home can give you enough privacy that you yearn for.

Privacy will be there if you have a second home you can transfer to. Moreover, if you are a young professional owning a second home where you can live independently will let you grow as an individual both mentally, and emotionally.

Value of Privacy when having a Second Home
Value of Privacy when having a Second Home | Photo from Munbaik Cycling in Unsplash

You get to think more about yourself when you have a private home, and you can also grow emotionally while you are away from your family.  

When to Buy a Second Property or Home?

Buying a property investment is no longer a question of when because real estate investing will always be best bought yesterday and in the present, while prices are still affordable or at their introduction stage.

You just must consider the urgency, the project, and the location as a few of the most important factors to consider and qualify for your second home. Aside from those, property buyers should also look at the most competitive and trusted developers’ investment options.

Generally, no matter where you are if where you plan or should be will matter most. Second homes are there as another roof where you can start new memories individually or with your family. Then it is important to find the best quality home or property to invest in as your next real estate investment.  

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