As noted in the first blog of this Sixty and Me series, there are various types of second homes:
In this blog, we’ll cover each type so you can wisely analyze which one is best for you.
One thing to remember for all second home types is the “double up” situation. This means the homeowner has the responsibility of ownership for two homes. Whether it’s do-it-yourself or hired out, there is more effort to maintaining two homes. Of course, if the second home is rented, the landlord will cover some costs.
Potential second home buyers need to consider the possibility of a Homeowner’s Association (HOA) and the rules for all homes under its authority. These might include:
HOAs typically assess fees for their services. Home buyers need to factor these potential costs into their buying decisions.
A condominium or apartment may be the only way some can afford a second home. The tradeoff is that multiple unit dwellers live close to their neighbors, so there are more rules to help everyone enjoy a peaceful living experience.
In researching the condominium or apartment, check to see if the building accepts temporary living because some HOAs, landlords or property managers prefer year-round residents.
Although some may have to endure other residents who don’t follow the rules or management that neglects building maintenance, condominium or apartment residents don’t have to worry about day-to-day maintenance. Another advantage may be numerous social interaction opportunities because more people are around.
A mobile/manufactured second home makes sense for the budget-conscious. In 2022, the average cost was $145,200 compared to $428,700 for a traditional home.
Despite their “cheap” reputation, late-model mobile/manufactured homes are higher quality than in the past. Also, many of these homes are situated in communities with well-maintained streets, sidewalks and communal areas like pools and clubhouses.
Unfortunately, mobile/manufactured homes tend to lose value over time. Owned land beneath can appreciate over time, but the structure itself depreciates. It’s also important to remember that mortgage financing may only be available from a lender specializing in mobile/manufactured homes.
While calling an RV a “second home” might seem strange, enthusiasts revel in life on the open road. RV living was popular before COVID-19, but interest spiked during the pandemic. Nevertheless, important pros and cons must be considered before committing to this lifestyle.
One trend that has emerged in the last decade is upscale RV parks. These communities feature luxury conveniences, including pools, tennis courts, fitness centers, clubhouses and restaurants.
Boat living as a second home shares many pros and cons with an RV lifestyle. One big positive committed boaters report is living on the water brings one closer to the natural rhythms of life. Also, the camaraderie among other “boat people” creates a great social atmosphere.
There are many options for a second home. Careful consideration of all the pros and cons of each will help you choose the right type for you.
Which type of second home sounds like something you might invest in? Why? Are you more of a freedom seeker or do you prefer to be securely grounded? Where would you consider purchasing/renting a second home?
Tags Downsizing Your Life