The Advantages of Owning a Vacation or Second Home

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With the rise of remote or flexible work, there are more opportunities to own a second home than before. You could purchase in a place you’ve always wanted to spend more time in, or an area that has nicer weather in certain seasons than where you currently live. It also provides a chance to create more memories and establish your roots in another community. We’re diving into some of the top reasons to purchase a vacation or second home.

Convenience and Flexibility

Having an additional home removes the bulk of major stress that comes with vacationing, like comparing reviews and prices for accommodations. You can also save space while packing if you keep items stored in your second home.

Rental Income

If you rent out your home when it isn’t occupied, it has the potential to be an excellent source of additional income while also building equity! Sometimes, the expenses of renting can be tax deductible as well. Be sure to seek the advice of a qualified tax professional to find out if this applies to you, as well as discuss your intentions to rent the home with your Loan Originator. Certain mortgages do not allow the home to be rented.

Tax Benefits

If you purchase an additional home without renting it to others, your mortgage interests and property taxes may be tax deductible. In many situations, the second home cannot be rented out for more than two weeks of the year to achieve these benefits. As mentioned before, it’s important to seek the advice of a qualified tax professional to find out if this applies to you.

Closer to Loved Ones

If your family isn’t entirely centralized, owning an additional home closer to your loved ones can allow for easier and more frequent visits. You’ll no longer be worried about hotels, transportation, or having enough space!

Prepping for Retirement

Having a second home gives you a place to retreat when you’re ready to retire. If you sell your first home, you can then use the profits toward the mortgage or renovations of your second home.

Helping You with Your Home Needs

When you’re ready to discuss how an additional home could benefit your family’s finances, contact us today! One of our Loan Originators will be able to walk you through the entire process with success. No matter your reasons for purchasing an additional home, know that Homestead Funding is in your corner.