Owning a second vacation home is the dream of millions of Americans. Not only does it encapsulate the idea of being able to escape on a whim, it’s also a sound and great investment vehicle. Now, those are two compelling reasons to purchase another property.
What to Consider When Purchasing a Second Vacation Home
Okay, so you want to buy another property to escape to periodically. And you probably have a good idea of which type of property you want, the size, and the amenities. You’ve scoped out a few different locations and you’re ready to get serious.
But you don’t want to make the mistake of purchasing a property that’s going to fall short of its expectations. So, here’s a couple of things you ought to consider:
Think like a tourist. When you purchase a vacation property, think about location in more ways than one. Nearby the beach is good, but so is nearby shopping, dining, and entertainment, especially if you’re going to rent your home.
Research the area thoroughly. Home values are climbing once again. But the crash wreaked havoc on some communities and they’ve undergone a change which make them less attractive.
Benefits of Buying a Second Vacation Home
Once you’ve honed in on a particular property, jitters might set in. But here’s what you should remember, there are several advantages which await:
• Long-term cash flow. Rental income can be a substantial, and long-term benefit of owning a second vacation home. It can help you to amortize the mortgage and keep the home clean and in livable condition.
• Tax benefits.Interest you pay on your mortgage, maintenance and upkeep, home insurance, utilities, property taxes, depreciation, necessary supplies and miscellaneous expenses can all be deducted come tax time.
• Familiarity. When you own a second vacation home, you’re returning home coming and going. Knowing the area and the characteristics of the residence are a great comfort.
• Retirement. Owning a vacation property also gives you a kind of head start on retirement. It’s also a place where you can retreat to when winter comes to your primary residence.
• Memory making. Having a place to gather with family and friends where you can make all kinds of fond memories and forge a long lasting bond.
When you own a second vacation home, you’re making an investment in your health, financially, physically, and mentally. A vacation home not only can bring in additional income and has tax benefits, it can be the source of immeasurable relaxation, the place to make lifelong memories, and an inspiration of the future.