I live in a community where approximatley 30% of our population is winter visitors. I have been thinking about getting my RSPS Certification and started doing some research on Vacation Homes. Did you know that almost 1.13 million vacation homes were sold in the United States alone in 2014? I could not find stats for 2015 yet. Obviously, Vacation homes are a great way to get away from your normal life a few times a year, as well as make some extra capital by renting it out when you aren’t using it. If Buying you will need to make sure you calculate the cost of: ~Financing ~ Insurance ~ Maintenance
If you’ve thought these things through and are considering buying a vacation home but aren’t convinced, here are 4 great benefits of owning a vacation home that may totally convince you.
Having An Excuse to Travel
If your vacation home is in another part of the country, you’ll have the opportunity to travel a few times a year. This is great, especially if you have children. People you have the opportunity to travel and meet new kinds of people on a regular basis can be kinder, more empathetic and more intelligent.
It’s also great to be able to experience a different climate whenever you like. If you live in Maine and have a vacation home in Florida, you can escape the cold and snowy weather during the winter months and relax in the sun when all your friends are shoveling their driveways.
A change in environment may offer the chance to do things you usually don’t have the opportunity to do. Perhaps the town where your vacation home is located is in the country or a beach town where there are multitudes of outdoor activities to indulge in. If you live in the city for most of the year, these things will be a welcome relief and make a great vacation.
A Place to Go In Case of an Emergency
Your vacation home can potentially act as a back-up home. If you are not renting it out, you can move in whenever you want. If there is a fire or natural disaster that makes your current home un-liveable, you know that you have a place to take your family.
Being Near Family or A Place You Love
Some people love the country, but work in the city. And some people are fascinated with large cities, but simply don’t want to live there year round. Having a vacation home allows you to indulge in that part of yourself without having to commit all year long.
It’s also helpful to have a vacation home in an area where you already have family. Perhaps you have an aging parent 60 miles away who need to be checked in on every now and again. Buying a vacation home near them allows you to visit them for extended periods of time without having to stay in their home or find a hotel.
A Well-Thought Out Monetary Investment
Renting your home out during part of the year is a great way to make extra money. Residential real estate is a fantastic way to diversify your portfolio, despite the fluctuations in property values. If you want to go this route, it’s advisable to start with a small rental property close to home. "That becomes a real financial nest egg for you," he says, "and down the road you can build equity and trade it for a place you've always wanted to spend time."
If you do choose to rent out your vacation home, you can claim the mortgage interest and property taxes as Schedule A deductions. It’s important to talk with a tax professional so that you are completely aware of all that goes into taxing a second home.
Lori Webster, REALTOR®, CNE
Direct: 480.518.2302
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