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Move-Up vs. Second Home



The pandemic has changed the way many of us live, work, and attend school—and those changes have impacted our priorities when it comes to choosing a home. 

According to a recent survey by The Harris Poll, 75% of respondents who have begun working remotely would like to continue doing so—and 66% would consider moving if they no longer had to commute as often. Some of the top reasons were to gain a dedicated office space (31%), a larger home (30%), and more rooms overall (29%).1 And now that virtual school has become a reality for many families, that need for additional space has only intensified. 

If you’re feeling cramped in your current space, you’ve probably considered a move. But what type of home would suit you best: A larger, move up home offering you more space or a second home that offers a convenient escape? Let’s explore each option to help you determine which one is right for you.

 WHY CHOOSE A MOVE-UP HOME?

If you are struggling 

with a lack of

functional space in

your current home,

a larger move-up

home is a

great choice that can

improve your

everyday life.


 If you’re struggling with a lack of functional space in your current home, a larger move-up home is a great choice that can improve your everyday life. And with mortgage rates at their lowest level in history, you may be surprised how much home you can afford to buy without increasing your monthly payment.

One major benefit of choosing a move-up home is that you can typically afford a nicer place if you spend your entire budget on one property. However, if you’re longing for that vacation vibe, a second home may be a better choice for you.

 

  

WHY CHOOSE A SECOND HOME?

 Home sales are surging in many resort and bedroom communities as city dwellers search for a place to escape the
crowds and quarantine in comfort.4 And with air travel on hold for many families, some are channeling their vacation budgets into vacation homes that can be utilized throughout the year.

One advantage of choosing a second home is that you can offset a portion of the costs—and in some cases turn a profit—by renting it out on a platform like Airbnb or Vrbo. However, be sure to consult with a real estate or rental management professional to get a realistic sense of the property’s true income potential.


WHICH ONE IS RIGHT FOR ME?

 You may read this and think: I’d really like both a move-up home AND a second home! But if you’re dealing with a limited budget (aren’t we all?), you’ll probably need to make a choice.  These three tactics can help you decide which option is right for you.

 

1. Determine Your Time and Financial Budget

 You may meet the bank’s qualifications to purchase a home, but do you have the time, energy, and financial resources to maintain it? This is an important question to ask yourself, no matter what type of home you choose - but especially if you are considering a second residence.

 2. Rank Your Priorities

 If you’re still undecided, make a wish list of the characteristics you’d like in your new home. Then rank each item from most to least important. This exercise can help you determine your “must-have” features—and which ones you may need to sacrifice or delay. Here’s a sample to help you get started:

 

#

FEATURE

 

Dedicated home office

 

Extra bedroom

 

Pool

 

Walk to the beach

 

Big backyard

 

Close to friends and family

 

Short commute to the office

 

Investment potential

 3. Explore Your Options

Contact me to schedule a free consultation. We’ll discuss your options and help you assess
the pros and cons of each, given your unique circumstances. I can also send you
property listings for both types of homes so you can envision each scenario.

 

LET’S GET MOVING

Whether you’re ready to make a move or need help weighing your options, I’d love to help. I can determine your current home’s value and show you local properties that fit within your budget. Or, if your heart is set on a second home in another market, I can refer you to an agent in your dream locale. Contact me today to schedule a time to talk it through!

 

 

Sources:

1.      Zillow -
https://www.zillow.com/research/coronavirus-remote-work-suburbs-27046/

2.      The Harris Poll -
https://theharrispoll.com/should-you-flee-your-city-almost-40-have-considered-it-during-the-pandemic/

3.      MarketWatch -
https://www.marketwatch.com/story/mortgage-rates-keeping-falling-so-will-they-finally-drop-to-0-2020-08-13

4.      Toronto Star -
https://www.thestar.com/business/2020/08/07/you-can-get-a-fixed-rate-as-low-as-184-per-cent-which-is-unbelievable-low-mortgage-rates-driving-up-home-prices.html

5.      Kiplinger -
https://www.kiplinger.com/real-estate/buying-a-home/601091/timely-reasons-to-buy-a-vacation-home

6.      The Press-Enterprise -
https://www.pe.com/2018/11/17/5-tips-on-when-should-you-buy-a-retirement-house-hint-before-you-quit-work/


 

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