According to Knight Frank, in 2014–15, the global luxury resort and vacation property market grew 28%, making it the fastest growing real estate niche worldwide. With 28% growth, the second home market is the fastest growing real estate segment worldwide.
Why Invest in a Second Home?
Investing in properties is the best investment decision anyone can make as properties generate higher Return on Investment compared to owning other assets. Investing in a second home is a safer option as the appreciation of property value nullifies the rise in inflation especially if the property in question has a great location. There are numerous benefits associated with owning a second home. These benefits range from investment benefits to luxury living. We have curated 5 benefits of owning a luxury second home below.
- Safety and Security
With the increasing level of crime in this era, there is a growing desire for safety and security. Everyone desires safety and security, having a luxury second home provides additional security, comfort and privacy. However, security and safety vary significantly from country to country.
During the Covid-19 pandemic in the year 2020, where there was lockdown around the world, Christiano Ronaldo, a popular footballer was able to take his family to a Portuguese island in Madeira where he provided himself and his family the optimal isolation, away from human contact in a luxury mansion that he had earlier invested in.
Private homes offer both security and privacy while easing the concerns of the owners and occupants, luxury properties have the added benefit of being secured whether occupied or not.
- Expansion of Assets
The increase in demand for luxury homes by vacationers cannot be overemphasized. This means buying a luxury second home is a wonderful investment as it will serve as a means of generating a steady source of income through vacation rentals such as Airbnb.
Vacation homes are sure stable sources of income. Short-term rental is ideal if you prefer to use your second home for your own vacation home.
- Serves as a holiday location.
Vacation is the perfect time to relax and enjoy the fruits of your labor. Having a luxury second home may serve as a holiday location for you and your family. Holiday-ing with the family in an incredible location is a perfect idea. This is why you should consider the location of your second home before investing in it. Remember, most vacation homes are usually in proximity to numerous tourist attractions while at the same time offering you the privacy for intimate gatherings, especially when holiday-ing in large numbers. Having a luxury second home will save you the cost of booking multiple hotel rooms, guest house shenanigans will also be avoided. The privacy and exclusivity offered by holiday homes is incomparable and therefore the location of your second home remains an important factor to consider before purchasing a second home. The only way to accomplish a relaxed holiday filled with all the ambience of a luxury hotel and as well as the comfort of a home is by investing in a luxury second home.
- A home away from home
‘Home sweet home’, this holds true when your second home offers you all the luxurious amenities and the ambience of the best hotels. Your second home, regardless of the luxury, should be equipped and furnished to create a homely getaway coupled with convenience and comfort.
Swimming pools, indoor movie theatres, game rooms, spas, spacious rooms, fully equipped kitchen and cozy decor gives the ideal relaxing holiday feel just as it should and creates the perfect blend of comfort and splendor.
- Assured Capital Growth
Capital growth is the rise in the value of an asset over time and it is bound to happen in real estate investments. Investing in real estate is relatively safe as the supply rate to demand rate declines, the value of your asset(s) appreciates. The difference between the current value of the property to the amount paid to acquire the property is how some investors raise their wealth when they eventually liquidate the property or in some way monetize it.
- Resale Value is guaranteed.
The value of a luxury home will always remain at the peak of the market provided the property is well managed. Luxury homes that enjoy high-value features, such as an excellent location, exclusivity, proximity to important places of interest, or have an interesting history, are going to have a better ROI than other forms of assets.
Whether you are purchasing your second home for rental purpose, holiday home, etc. purchasing a second home comes with a host of benefits. Moreover, if you ever get faced with financial restraint in the the future, you can sell the second property to meet the necessary monetary obligations. And as you age, your second home can serve as a retirement abode.