We all dream of owning a summer home, which is something that very few of us can achieve. But if you have the money, investing in a summer home is an excellent way to spend your money, and you also have a home to spend your vacation in. So, without further ado, let’s dive into this blog and learn some practical tips for investing in a summer home.
1. Have a good time
Buying a vacation home or apartment is, above all, a source of pleasure. Peace and quiet, fresh air, and good times with family or friends are the promises of your summer home! At any time of the year, you can decide to spend a few days in your vacation home.
It’s an opportunity to disconnect from your oppressive daily life and recharge your batteries while staying at home! More than a vacation destination, investing in a summer home allows you to combine pleasure and profitability.
Unlike hotels and vacation rentals, owning a second home allows you to vacation at a lower cost. You won’t have to pay extra for hotel services and restaurant meals. Being able to spend your vacation “at home”, deciding to pack your bags on a whim, for a weekend, or for the whole summer, without any additional costs, is a real luxury!
2. Extremely attractive real estate loan rates at the moment
While the return on savings products is low, real estate investment is a safe and profitable investment. Why is this? Because it offers the possibility of being partly self-financing thanks to the rents received from a rental property. The rate of return of such a rental investment can oscillate between 2 and 4%, which is also higher than the rate.
A for example. Moreover, the period is more than favorable for purchasing a second home. With interest rates at their lowest, the number of loans granted by banks is increasing. Smart buyers will take advantage of this favorable situation to apply for a loan and thus optimize their real estate project financing.
3. Telecommuting is booming
The pandemic and several lockdowns have democratized telecommuting. Whereas it was not very widespread before, many companies now offer to use it, even partially. You don’t have to be in the office all the time. This is an opportunity for all homeowners who have taken care to buy a second home to take the plunge! They will be able to take full advantage of it. This purchase will allow you to enjoy nature more often without moving permanently. At a short distance from the capital, many regions have the wind in their sails for the purchase of a second home.
4. Make your investment profitable
The great advantage of a second home is that you will always have the possibility of renting it in order to limit costs. Indeed, owning a pied-à-terre can be used as part of a rental investment project when it is not in use or for long-term rental. It is important to know that these options are only attractive if your property is located near a tourist area that can attract tenants in spring, winter, or summer.
Renting out your second home will first allow you to pay back the full amount you paid for the purchase of your home. Then, this rental will enable you to have an additional income that can be used, for example, to pay all the current expenses, carry out work to maintain the house, or simply carry out other rental investments to increase its heritage.
5. Build up your assets
The purchase of a second home is an excellent opportunity to build a tangible asset. This will be used in the long term as capital for your retirement or will allow you to pass on a beautiful inheritance. Ideal to guarantee your future and realize a real estate capital gain in case of resale! Indeed, investing in stone is a long-term investment and a safe bet, especially if you consider it as a refuge investment.
In short, investing in a second-family home is an excellent long-term investment. If this property has been well maintained and its location gives it added value, it will be a capital asset to keep, to pass on for rent or for sale.
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