Benefits of Owning a Vacation Home
Buying a second property located in a different area is more than just a getaway for you and your family during vacation time or inclement weather; it’s a serious future investment. This investment actually carries a lot more benefits than you would think as well, instead of the normative vacation spot everyone always thinks of immediately.
More often than not, the home that you live in year round will fluctuate assets in a short term and throughout the years, however, vacation properties are actually more likely to retain their value and appreciate because most times they’re located in popular areas. Along with this increased value over time, if you happen to rent out your property but keep it to no more than two weeks per year, the interest on your mortgage and property taxes are considered fully deductible from your gross income.
However, if you so choose to rent out your vacation spot all year round, you’ll lose out on the tax deductibles, but you’ll gain a ton of rental income from the people that are using your property for vacation. Sure, the thought of random people living in the house you bought for vacations isn’t ideal, but as long as they take care of it and nothing goes horribly wrong, you’re making good amounts of extra income just by owing a second home.
Over time, as you continue to head back to the same location for vacation getaways, you’ll start to gain familiarity with your place and with the area surrounding it. This will enable you to become comfortable with those living in the area, and give you the freedom to be yourself. This is especially great for those getting a head start to retirement because although we might love where we live currently, the option to pack up and move once you’re done working for good is always there with a second property.