Buying a Second Home During COVID
Interest in Vacation Homes is Sky High
Wondering if now’s the time to snatch up a vacation home for investment? You’re not alone.
Second homes are driving the current housing activity surge in the U.S. Demand for second homes has nearly doubled over the last year even as the pandemic surges and the economy struggles.
WFH Driving the Trend
COVID has shown many of us that we can work from anywhere. We’re not tied to our company headquarters, at least not all of the time. As a result, people are fleeing crowded cities in search of space and seclusion.
COVID has also forced us to rethink travel. People are considering what's safe and what's convenient. They're wondering if they can get away more often. Many are investing in a vacation spot they can retreat to again and again.
So maybe it’s time to make that picturesque destination your actual zoom backdrop. Working out of a vacation home certainly has its benefits. Imagine a hike over your lunch break. A walk along the beach to clear your head. A fishing outing at dusk.
It all sounds quite therapeutic. And isn’t that just what we need after a tumultuous 2020?
Benefits to buying a second home right now:
- Take advantage of record-low interest rates and the flexibility to work wherever.
- Care for your health and well-being near beautiful natural surroundings and away from densely populated cities.
- Change up your scenery and use different workspaces to brainstorm and get creative.
- Target vacation communities that have lower-cost housing than large cities that draw mostly primary residents.
- If you’re buying a second home in another state and you’re considering spending the majority of your time there, you may be able to save a significant amount in taxes.
- Gain an additional income stream by becoming an Airbnb host. If you can attract remote workers to your location, this could be a big one. Long-term Airbnb rentals are on the rise.
While the benefits are significant, keep in mind that it's a seller’s market in most locations across the U.S., meaning that there’s more demand for homes than there is inventory. Buyers typically don't have as much bargaining power in a seller's market, so be sure of your budget going into the process. Check out our owning a second home guide as you weigh your financial decisions.
As always, do your due diligence, but if you need a nudge, we're here to encourage you. Now might be just the time to take what COVID has taught us and turn it into a great investment in yourself and your capital.