The debate of whether it makes sense to own a second home or not always draws people into two different camps. While for some, the idea of second home buyers draws no appeal from them, another group relish the idea very much. There are serious back and forth arguments generated with each group trusting in the superiority of their stand. Is it a sign of egoism or does it make a good investment sense?
WHO IS INVESTING?
The sense in all this can only be found in who is actually investing. More often than not, the aspirational middle class is the group going for a second home. With an extra income in their bank accounts, the idea of buying a second home now flirts on their mind. Different reasons such as the need for a retirement home or just plain emotional reward are behind the minds of second home buyers.
The reason why it seems like second homes are being bought by the middle class is the disposable income with them. Seeing a home as an investment, it only makes sense that with a disposable income, the middle class should increase the value of investment they have.
The middle class does not buy second homes just because of the disposable income which they now have. Part of the reason is the ease of finance. Real estate developers have designed payment methods that accommodate the middle class. The incentive provided by real estate developers now lure the middle class to cash in on the opportunity. Real estate developers designed payment methods that will suit the budgets of the middle class in order to expand their client base. This explains the increase in the number of second home buyers.
The state of the economy also plays a key role in determining the number of people who go for second homes. When the economy booms, it promotes investment by people and the middle class is no exception. Real estate is considered an investment, and investment thrives in a booming economy. In addition to the availability of cash in the bank accounts of the middle class, the booming economy encourages real estate developers to build more homes. With the availability of homes to buy and easy finance made accessible by real estate developers, the middle class seizes the opportunity and invests in a second home.
TIPS FOR SECOND HOME BUYERS:
Second home buyers should realize that while everything seems to work in their favor, care should be taken when making the decision to buy a second home. Buying a second home is not just meant to be a show of affluence, it should be considered strictly for what it is – an investment. the following tips should be considered:
– Since a second home is an investment in itself, the second home bought should be able to sell for a profit if the need so arises.
– It is not compulsory that the second home will generate rents like a home in the city.
– Care should be taken that the second home is bought only from a known and reliable real estate developer.
Interest in buying a second home contact Propbuying