SECOND HOMES FIRST – A MOVEMENT

With median home prices in cities like New York and San Francisco hovering around $1 million, some first-time buyers are choosing to remain renters in their home city and they're buying a vacation property in a more desirable/affordable area instead.

               Over the past few years, we have been seeing more and more Millennials buy on the North Fork, where they can get a beautiful home on waterfront property and not use all their assets and plus some to get a fraction of the space in the city.  They then have the best of both worlds - a city apartment rental offering more than they could afford to buy, and a second home in a resort area offering all they wish to enjoy with children and family.  “A place to live, and a place for living.”

Does it make financial sense to buy a second home and rent a primary residence in the city? Starting with a second home can be a reasonable choice for many urban professionals, especially couples with small children.  Space in New York City is far more expensive on a per-square-foot basis. Instead of taking on a big mortgage in the city, a smaller mortgage for a vacation home may not only be easier on your budget, but could also have some relative tax advantages, including mortgage interest deductions on loans up to $750,000 and some local tax deductions.

Why buy a second home, first?  There are several important factors to consider.  The emotional well-being that comes from getting out of the city, especially when couples are in stressful jobs, is “priceless”! You get to enjoy the North Fork, to relax, go fishing, swim, hike, kayak, garden, visit local wineries, and breweries, enjoy diverse dining experiences, in a much more laid-back environment.  If you have children, you also spend quality time together and the children can run around in farm fields or even just the lawn in your back yard!  Sound idyllic?  It is!!! 

Why the North Fork makes for an even wiser choice for a second home is the steady appreciation in value.  “Win-Win,” don’t you think?  But the challenge today is getting the best value in a market where inventory is in short supply.  Make your move sooner rather than later. Don’t let the parade pass you by!  Call us, we’ll tell you all about the opportunities and possibilities of our beloved North Fork, and you can be part of it before the summer season starts!  Maybe even a Valentine’s gift for yourself and the whole family!

Source: Why people are buying vacation homes -- before they've even bought a first home, Anna Bahney, CNN Business, January 7, 2020.