It's almost summertime and it's now that a lot of people start looking for a vacation home. A place to relax and enjoy peace & quiet! But is it a good investment?
You can buy a vacation home today for investment purposes as well as enjoyment. And yes, there are tax benefits.Some people buy a vacation home to use as a permanent retirement home later, which allows them to get ahead on their payments. Another benefit is that the interest and property taxes on a vacation home are tax-deductible.
Some real estate experts predict that vacation homes will appreciate in value due to rising demand from the aging Baby Boom generation. You also can depreciate the property if you live in the house less than 14 days a year.
You also need to consider whether you can afford to carry two mortgages, pay for the extra utilities and maintenance costs, and how this investment fits into your total personal finance picture.
If you are interested in looking for a vacation home, feel free to contact me with any questions that you have! I can help you navigate the sometimes complicated process of owning a second home!
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