Are you a homeowner in Nairobi thinking about buying a second house? Previously, owning a second house was reserved for wealthy individuals. However, more people are investing in second homes today, especially with the many potential uses they can serve. It is a trend quickly catching on as consumers move to secure their financial futures, considering the stability real estate offers. While some concerns like the initial financial commitment, maintenance costs, and management complexity could make owning a second house seem more disadvantageous, it offers many benefits. If you are considering it, here are some of the top benefits you stand to realize from the second house in Nairobi, Kenya.
Earning potential
Nairobi is a competitive region, meaning you can find a range of alternative uses for the house. Check out resourceful pools like Hauzisha. You’ll find helpful content on the alternative uses of the second house that can earn you good money. You can turn the house into a vacation property and enjoy short-term rental income. You could also consider making it a full rental house, generating considerable income. Besides residential use, you can turn the house into a commercial hotspot. A fully-furnished house in Nairobi is a hot piece of real estate since you can rent it out to businesses for uses like remote working space and to shoot adverts, among others. The income potential of a second house can see you pocketing massive profits over the years, making it a great investment.
Security
Are you wondering how to invest your cash or a saving mechanism that’ll set you up for success in the coming years? Investing in a second house marks such boxes. You can use your savings as a mortgage deposit, allowing you to secure a second loan at friendlier terms. As you pay off the mortgage, you are making some savings. You’ll remain disciplined since you don’t want to affect your credit score, making it a smart savings strategy. Over time, you’ll own more equity in the second home, providing financial security. You can sell the house later and pocket a great profit. You could also use the equity on the house to finance other aspects of your life, such as buying your dream car, financing a business undertaking, or a remodel to your primary residency.
Tax benefits
Buying a second house can earn you significant tax savings. Lowering your tax burden is a good perk since it helps you save money. If you use the house as your residence, meaning you aren’t renting it out, you’ll qualify for a mortgage interest deduction similar to your first house. You also stand to pocket rental income tax-free if the rented period and income during that tax year are within a set threshold. A second home gives you a great opportunity to pocket more money and save on your taxes, a financial benefit that continues to attract more investors.
Quality time
Where is your second house in Nairobi? Following its location, you can use the house as a vacation home. This gives your family a chance to hassle-free plan spontaneous vacations. You won’t incur high accommodation costs or deal with the hassles of looking for the available option, meaning you get more time to enjoy the holiday.
Diversification
Diversification offers a safety layer, and real estate wins on many fronts as you look for such opportunities. Buying a second house can help grow your real estate portfolio since you’ll diversify from the usual rental properties and enjoy good profits with potential investment returns.
Nairobi is a competitive region boasting well-connected transport infrastructure, internet connectivity, utilities like water, electricity, well-established shopping centers, financial and medical services, and educational institutions, to name real estate considerations. Therefore, buying a second house in Nairobi, Kenya, is an excellent investment, whether you intend to use it as your primary home or vacation property for short/long-term leases or turn it into a commercial space, among other alternatives.