Second Home Ownership: Domestic or International?

September 2, 2022

There are many reasons people consider purchasing a second home or investment property. A common question that comes up, however, is about the differences between buying domestically or abroad. Those questions typically surround the pros and cons of each option.

While there are perks, and the idea of having a home across the water can sound enchanting, it is also becoming increasingly less inviting. Although many countries would like to present buying a home or investment property as a wonderful idea, there are important factors to consider before making the jump.

Here is a look at the advantages and disadvantages of buying a second home or investment property, both at home and overseas.

Domestic vs. International Second Home Ownership

A big consideration for those looking into buying a second home is the purpose of the purchase. Was the house bought as an investment property? Was the home purchased as a vacation property or perhaps as a rental property to create an additional source of income?

These are some of the additional factors that require consideration when looking into the purchase of a second home either domestically or internationally. Buying a second home is also where having a trusted and experienced investment partner can prove beneficial.

Travel

Decidedly, a benefit of buying a second home or investment property located on this side of the water is the travel involved. Even a second home in Hawaii for someone who lives in Maine is easier to get to than one in another country.

Any home purchased in a country abroad will require considerably more travel and expense. That can become problematic and cumbersome. And if someone invests in a rental property overseas, it will involve the added complication of hiring a property manager and or maintenance crew in that country.

Restrictions

Along with travel considerations are potential travel restrictions. Buying a second home or domestic investment property eliminates any barriers to getting to an owned property or house. The same can’t be said about buying a home internationally.

The onset of the pandemic has made the ability to travel outside of the country increasingly difficult. In some cases, travel has even been impossible. From security measures to travel bans, the ability to find flights overseas continues to be exceedingly troublesome.

Personal Goals

Another consideration as unique as each investor looking to buy a second home is their personal goals or reasons. In some countries, property investment can become the fast track to obtaining a residential visa or even citizenship as more countries are offering perks and incentives to invest in their country.

If the goal is a vacation home, then there are those obvious benefits mentioned above regarding the advantages of buying domestically. From beaches and warmer climates to snow-capped mountain peaks, there isn’t much the purchase of a second home within our borders can’t offer.

Financials

Another aspect of buying a second home or investment property that should be considered is the financial aspects and benefits. The edge here, once again, favors buying domestic property. A second home will often qualify as a tax deduction, one of the many pros of buying domestically.

In addition to tax credits, a second home purchase or investment property will also pay dividends for years to come. While these financial rewards are possible in some countries, none offer comparable stability and the certainty of buying within our borders.

Considering Purchasing a Second Home or Investment Property?

There are, of course, these and many other considerations when looking into purchasing a second home or property. It is also understandable why most individuals and investors seek out assistance and an investment partner. In most cases, even investors don’t work as investors as their vocation.

Anytime a large purchase, such as a home, is involved, it is a good idea to seek experienced and proven professionals who can help. When comparing domestic second home purchase or investment property versus buying internationally, the domestic options typically win.

That doesn’t mean that it is a bad idea or that someone shouldn’t consider buying an investment property or second home internationally. What this does mean, however, is that comparably speaking, the benefits of buying a second home or property domestically usually wins.

No Two Home or Investment Property Purchases Are the Same

Since no two home or investment property purchases are the same, most people rely on the help of people who can help them navigate these types of decisions. Evaluating each potential purchase on a case-by-case basis is necessary.

That is also why help from experienced professionals in navigating these waters is so beneficial. Sometimes a deal that is too good to be true, even a million miles away, really is true. But many times, it is too good to be true. Near or far, making sure that that second home purchase or investment property is a good deal shouldn’t be tackled alone.

A second home is never a bad idea, and people are buying second homes and investment properties more often today than ever before. The secret to successfully buying a second home or purchasing an investment property is to have the resources, insights, and the right help — not only to find the right second home or investment property but also to help get the deal done successfully.