It might surprise you to learn that the average home sold for over $500,000 in 2022. While rising home prices have made buying property difficult for many people, it's also served as an amazing investment opportunity for those who can afford it.

Owning a second home can take your net worth to the next level, and it comes with numerous other benefits you should be aware of. Let's explore why you should consider adding a second home to your portfolio.

Rental Income

In many circumstances, owning a second home is a good investment that can establish a robust stream of passive income. Keep in mind that this is a long-term investment, and it might take a while for you to accumulate wealth. Part of your income will be used to pay your second home's mortgage.

You'll need to set an appropriate amount for rent, though. Otherwise, you risk experiencing vacancies. Even a single month of vacancy could cost you thousands of dollars.

Many homeowners can't afford situations like these, so stay vigilant when listing your property. You'll also need to properly screen your tenants so you don't rent to anyone unreliable.

Tax Benefits

Owning a second property on Lake Oconee can provide tax benefits that many people overlook. You may have additional tax write-offs, such as interest, maintenance expenses, and insurance. You can deduct these from your gross income and reduce the total amount you pay in taxes.

Potential Appreciation

The more properties you own, the greater chance you can capitalize upon appreciation. Homes all over the country have skyrocketed in value in recent years, and real estate always increases in value long term.

If your second home appreciates it, you can sell it for potentially massive gains. You can then purchase an additional property or invest this money in other areas of your life. Working with the right real estate agent can ensure you find a property suitable for your needs.

Flexibility

One of the most notable benefits of owning a second home on Lake Oconee is the flexibility it provides. If you aren't renting it out to tenants, you can visit whenever you'd like and use it as a vacation home or weekend getaway. You also know you'll have a place to stay if you're ever in the area for other obligations.

Details like these make owning a second home an enticing option for those who enjoy a change of scenery every once in a while. Feel free to let friends and family stay there briefly if they need a great place to visit.

Budget for a Second Home

As soon as you have the money and the market conditions are right, it's recommended to purchase a second home. The tips in this guide will ensure you make the most of the opportunities that come your way.

Jennifer Vaughan Realtor has a dedicated team of professionals to help her exceed all of her clients' expectations. She leverages her specialized knowledge of the Lake Oconee market to connect buyers with the property that's ideal for their needs. You can learn more about how she can help when you browse available properties today.