Could a Second Home Help You Plan for Retirement?
Are you wondering if you’re on track for retirement? You’re not alone. According to Intuit, nearly 7 in 10 people say today’s financial environment makes it tough to plan for the future, and many aren’t sure they’ll ever be able to retire comfortably.
That’s why more homeowners in Summit NJ, Short Hills, Chatham, and surrounding towns are exploring how real estate can play a role in building long-term stability and financial freedom.
If the numbers work for your situation, purchasing a second home could be a smart move toward securing your future. Here’s how real estate can help:
Build wealth over time: As home values in towns like Summit, Short Hills, and Chatham continue to rise, your second property can appreciate in value and grow your net worth.
Generate extra income: Renting out the home can provide additional income you can use to supplement retirement savings. (Just remember, some of that rent will cover the mortgage and maintenance costs.)
Boost retirement funds later: Selling your second home down the road could result in a profit you can put directly into your retirement nest egg.
Diversify your assets: Real estate gives you a tangible investment beyond stocks or savings, creating a more balanced and stable financial plan.
You don’t have to be a major investor to benefit from owning more than one property. In fact, research from BatchData and CJ Patrick Company shows 85% of people who own multiple homes only have 1 to 5 properties.
That means most second-home buyers are everyday people, neighbors, colleagues, and families in our community, who purchase an extra home to rent out or hold onto for the future.
The current market may be opening up opportunities for buyers like you. Danielle Hale, Chief Economist at Realtor.com, explains:
“The balance of power in the housing market keeps shifting in favor of homebuyers. . . A confluence of factors - including more homes for sale, rising price cuts, and slower-moving inventory - is giving buyers more leverage than they’ve had in years . . .”
Here in our part of New Jersey, where home prices are expected to remain strong, buying a second home now could be a strategic way to build equity for later. Whether you decide to rent it out for income today or sell it down the road, you’ll have more options for your financial future.
If you’re considering this path, the first step is surrounding yourself with the right team:
A local real estate agent in Summit NJ who understands the market and can guide your search
A lender experienced with second home and investment property loans
Other trusted professionals to help you make smart, confident decisions
Owning a second home isn’t just for investors - it could be a smart move for your retirement strategy.
At the Price Group, a leading real estate team in Summit NJ, we’ve helped countless buyers explore opportunities to purchase second homes, whether for investment, future retirement, or both. If you’ve been wondering what’s possible, let’s start the conversation.