Cantissimo Senior Living Blog

Among the many motivations for purchasing a second home, buyers must consider the financial implications of owning a real estate asset. This post will focus on a second home as an investment and income opportunity. Subscribe to our blog so you don't miss our upcoming post, which will cover the costs side of the equation.

An Investment

In thinking about a second home as an investment, we’ll restrict the discussion to a property you intend to live in a part of the time, not one you buy but never stay in.

Fractional Ownership is an emerging partial ownership model. The concept has gained popularity in the past two decades as companies have marketed vacation homes specifically to be sold as fractional ownership properties. Private parties can independently organize fractional ownership arrangements, but the latest marketplace buzz has arisen from commercial ventures.

How Does Fractional Ownership Work?

First, a company will purchase properties or develop them from scratch. Then, a limited liability company (LLC) is formed based on each property, and shares are marketed. Each share represents the number of days/weeks annually the share owner can use the property. For example, if there are ten shares, each owner is entitled to five weeks per year at the property. (This assumes maintenance consumes two weeks per year when the property is unoccupied.) Owners can typically buy more than one share if desired. In this case, an owner of two shares could have rights for ten weeks annually.

It's common to think of acquiring a second home as a full owner. In its purest form, full ownership of a second home means only one person's name on the title and the mortgage. However, it is not unusual for couples to have both names on the home's legal documents and still consider it a full ownership situation.
 
Nevertheless, there are also types of partial ownership where more than one person has rights to the real estate asset.
 
"Partial" or "multiple" ownership means more than one person owns a home together. These people could be siblings, parents and their children, other family members, friends, business partners, and even people who have no relationship to each other except as co-owners.
 
Partial ownership arrangements often arise when individuals cannot afford a second home independently. While a co-ownership deal might help you achieve an otherwise unreachable goal, it is usually more complex than full ownership.
 
There are three primary ways second home partial ownership can be handled.

Just because you've entered the retirement phase doesn't mean you should stop pursuing fulfilling work. Whether you're looking to increase your income or just want to keep busy, here are some suggestions for jobs you can still do post-retirement.

Many assume a second home means purchasing a house, condominium, or mobile/manufactured home. However, there are those who have long-term rentals that they call their second home. 

Can a Rental Be a Second Home?

Can you realistically consider a rental to be a second home? The answer is "yes!" Just as primary residence renter (e.g., houses or apartments) consider their abodes to be home, there is also the option of renting your second home.

When does a rental become a second home versus a vacation or other temporary arrangement?

 Enthusiasm for second homes boomed during the COVID-19 pandemic due to the millions working remotely and low mortgage interest rates. While less favorable rates have cooled the market, many people continue to explore the prospect of a second home as:

• A getaway from the dreary day-to-day routine
• An escape to better weather
• A future retirement location
• A way to be closer to family
• An investment or income opportunity
• An opportunity to join a new community and build relationships

 Often, it's common that a combination of these reasons motivates interest in a second home.

If you're curious about the second home option, it's important to understand the details of what establishing a second home entails.

Retirement can be a wonderful time in a person's life, but it can also come with financial challenges. With fixed incomes and rising costs, it can be difficult for seniors to make ends meet. However, there are many ways for seniors to save money and stretch their budgets.

In this blog post, we will discuss over 150 simple ways for seniors to save money on everything from housing and utilities to healthcare and entertainment. From cutting back on unnecessary expenses to taking advantage of discounts and rewards programs, there are plenty of ways for seniors to save money and make the most of their retirement years. Whether you're looking to save money on everyday expenses or plan for a special vacation, this post will provide you with the tips and strategies you need to make your money go further.

 

Some Medicare beneficiaries want more healthcare benefits than Original Medicare can offer, even with Medigap supplemental policies. Medicare Advantage Plans (sometimes known as Medicare Part C) fill this need by providing more benefits for beneficiaries who agree to extra costs and less flexibility.

The Medicare Advantage Alternative

Offered by private insurance companies, Medicare Advantage Plans provide Part A and Part B coverage as an alternative to Original Medicare. Medicare pays a fixed amount to these insurers for each beneficiary enrolled in their plans but requires these companies to follow specific rules. These rules allow the companies flexibility to offer more services. However, to do this, they may handle out-of-pocket costs differently and impose certain restrictions on enrollees.

 

Original Medicare (Part A and Part B) offers many benefits, but it has some "gaps." The most prominent gap is there is no limit on out-of-pocket expenses, which encompass deductibles, copayments, and coinsurance.

Medigap to the Rescue

One way to fill many of these gaps is through a Medicare Supplement Insurance policy (also known as Medigap) sold by private insurers. Medigap policies come in several different versions but must adhere to strict government standards. These standards allow easier comparisons between policies and protect consumers from unscrupulous insurers.

If you're thinking about selling your life insurance policy, there are a few things you should consider first. To determine if selling is the right decision for you, assess whether you need the money and whether you can afford to let the policy lapse. Then, follow these steps to get your policy sold: