Few people may have thought that it would ever pay off. But, there are people who bought a house at the height of the Great Recession who are earning a significant profit on that house. Buying a house when prices are low then selling that same house after prices rise is almost a sure way to generate a profit.
Open your eyes to how a second home saves you money
Yet, you don’t have to sell a house at a profit to generate income from a second home. Keeping a second home pays off in more ways. An example is whenyou buy a second house while your child is instill in high school.
During this time, you could rent the house to people who recently relocated to the area.These are the very people who may most appreciate the chance to move into a well cared for home on a good lease.
After your child graduates from high school and enrolls in college, she could live in the second house that you bought. Outcome of this is saving the money that you would have spent on out-of-state campus housing.
Buy a second house in an upscale community that’s within walking distance of major colleges or universities and you could save yourself or your child the money that you would have spent on a new car or truck for your child. You could also put your child within walking distance of major companies, places where your child could gain firsthand experience in his major by participating in rewarding internships.
Even more savings attached to owning a second home
But, you don’t need to have college aged children to benefit from owning a second house. Owning a second house could save you money if you use the second house as your:
- Vacation home – Although the cost of an overnight hotel stay varies by facility, you could easily spend $150 a night on a hotel if you’re vacationing with two to three people. Over the course of ten days, that comes to $1,500.
- Rental property – Rent out your second house and you could generate enough money to cover the entire cost of your main home.
- Retirement home – Instead of paying for costly nursing home stays, you could encourage your parents to relocate to your second home. If your parents are facing health challenges, you could pay someone to care for your parents inside the second home. Even with the cost of the daily care, you might spend less than what it would cost to keep your parents in a nursing home.
You could also operate a full scale business out of a second house. One good business that you could operate out of a second house is a bed and breakfast. The more creative you are, the more ideas may surface that reveal to you surprising ways that a second home can save you money.