Real estate investments are becoming a popular choice nowadays because they are a great way of diversifying your portfolio. While other first-time homebuyers may be looking into purchasing their own home, should your first purchase be instead a vacation home?
First-time homebuyers are often excited to land their dream home and opt out of renting someone else's house. However, a new report suggests that your first purchase should be a vacation home instead of a house for your family. Why is that the case?
According to Trulia, it may be a better option to continue renting a home for the family and buying a vacation home as your very first purchase in the real estate market. The publication noted that this is due to the rising prices of houses in the market, especially those situated within popular cities.
"The idea of buying a vacation home as a first real estate purchase and renting a primary home may not seem intuitive to most people, but upon closer inspection, it can definitely make financial sense," said Michael Comandini from the Comandini-Chowdhury Team.
The publication then listed several benefits of making a vacation home your very first purchase. The outlet noted that in this competitive market, purchasing a vacation home means that you would not need to go through the stress and hassle of bidding with other buyers and shelling out more cash for the down payment.
Aside from this, owning a vacation home can serve as a perfect place for you and your family or friends to relax during the weekend. You may also put the house for rent during those times when you won't be using it.
As previously reported here on Realty Today, more Americans are already spending a lot of money on home improvements, as the demand for rental homes increases.
This could mean that you could have someone else rent your vacation home, which in a way will help add passive income to your monthly budget.
