Buying a second home is an exciting consideration if you are looking to invest in your future and have a home-away-from-home in a picturesque place like Lake Eufaula. There are several reasons why a second home is a worthy investment, so let’s go over a few:
Benefits of Buying a Second Home
Vacation Retreat
Having your own house at Lake Eufaula means opportunities for spontaneous vacations. If you want a place to get away from it all, Eufaula is the perfect spot for relaxation, fishing, and family get-togethers.
Investment
Real estate has long been known as a solid long-term investment. Lakefront properties in particular can appreciate in value over time, especially in desirable areas like Lake Eufaula. With its beauty and abundance of activities, it’s no surprise that it’s become a popular place for retirees and families alike.
Retirement Planning
Having a second home in a setting that is ideal for relaxing can be a solid investment in the future of your retirement. Your second home could be the perfect place to spend your golden years!
Rental Income
Renting out your second home when it’s not in use is a great way to offset mortgage costs, property taxes, and any maintenance expenses. It’s also a fun project and solid financial move that lets you own a little slice of paradise while sharing it with others to earn some cash on the side. Win-win!
Tax Benefits
Owning a rental property also comes with some nice tax perks. When you purchase a second home, you might be able to deduct mortgage interest and property taxes depending on how the property is used.
Financial Considerations
Your financial situation may have changed when buying a second home versus when you took out a mortgage on your primary residence. Because of this, review your assets, income, savings, and current/anticipated expenses to determine if you can take on a second mortgage and the other monthly costs that come with a vacation home. Here are some important things to consider before financing a second property:
Down Payment
Lenders typically require a higher down payment for second homes–often 20% or more. So be ready to put down a good chunk of change up front.
Mortgage Rates
Interest rates on second homes can often be a bit higher than those of a primary residence. It’s worth shopping around for the best rates.
Maintenance and Upkeep
Owning a second home means double the maintenance prices–think about things like general upkeep, repairs, lawn care, utilities, and any potential HOA fees.
Insurance Costs
Second homes often have higher insurance premiums, particularly lakefront properties.
Property Taxes
Don’t forget property taxes! These can vary depending on the location, so make sure to check your rates.
The Benefits of Renting Your Second Home
Renting out your second home is a great way to create some extra cash flow. There are also options–whether you are looking to rent it as an annual or vacation rental. Each has its perks, so let’s break it down.
Extra Income
One of the biggest perks is the potential for extra cash flow. When you’re not using your home, you can rent it. Lake Eufaula has lots to offer, meaning there is always a steady stream of people looking to escape to the lake, making it a prime spot for a vacation rental.
If you choose to rent your home to a long-term tenant with a lease of a year or more, you’ll enjoy the stability of a consistent income without the concern of vacancies. However, you might miss out on the potential for higher rental rates during peak seasons, which is a key advantage of offering your home as a vacation rental.
Property Appreciation
Because of Lake Eufaula’s popularity, the real estate market is pretty solid. Over time, your second property’s value could see a steady increase, meaning you aren’t just making money through rentals, you are earning equity.
Tax Benefits
There are great perks to owning rental property. You can often deduct expenses such as mortgage interest, property management fees, and maintenance costs from your rental income.
Using Property Management Services
Using property management services for your second home, particularly if you are renting it out, can make life a whole lot easier. Whether it’s a vacation rental or long-term lease, managing a rental is a lot of work. Between maintenance, cleaning, dealing with repairs and tenant issues, or the rental process itself, it’s a lot to handle. A property management company service will handle this for you so you can enjoy the benefits without the stress.
Ready to Look for Your Second Home? Let us Help!
Lake Eufaula is a gem in Oklahoma, brimming with scenic beauty and laid back vibes. It’s the perfect place to invest in your second home to use as a vacation home or as a worthy investment. Are you interested in learning more about the market here and looking into the next steps of owning your own property in Lake Eufaula? If so, contact us today
