Buying a second home is a dream for many property owners. However, homeowners rarely put that dream into a reality because they think the costs outweigh the benefits. As with any real estate purchase, there will be advantages and disadvantages that come with a second home. When done correctly and at the right time, a second home can become an incredible asset to you and your family both financially and personally.
Here are some of the many reasons why having a second home is well worth it:
Extra income
If you don’t intend to spend all your time in your second home, turn it into a rental. This is a great opportunity to have the extra income you make subsidize your mortgage and cover some maintenance costs.
If your vacation home is in a popular destination, you won’t have a hard time finding short-term renters. Also, making your property available to others has become easier because of the dozens of vacation rental apps now available online.
Tax benefits
Some homeowners may be surprised to find that owning a second property does come with tax benefits. Those who want to rent out their second homes can write off a portion of their business expenses when it is time to file taxes. Another bonus is that if you only rent your second home for 14 days a year or fewer, then you can take the profit from the rental tax-free.
If you are not too keen on taking in renters, you may be able to deduct property taxes on your second home with some limits.
Permanent vacation destination
Everyone loves a home away from home. Having a second property means being able to go on vacation anytime you want without the hassle of booking accommodations. All you need to do is set a date and pack – it is as simple as that.
It’s also a wonderful opportunity to meet new people and create meaningful connections in another community.
A head start on your future
It is never too early to plan for your future. Buying a second home now puts you in a better position to choose a piece of property that you can live in permanently later in life. Or when you decide to downsize, find a job that allows you to work from anywhere, or retire. Think of a place you want to move to in the future and purchase a home there as early as now. By the time you retire, you would have paid off your second mortgage so you can spend your days enjoying the perks of your property full time.
You can also use your second home as a rental or sell it outright and put the money towards your retirement fund.
Ready to buy your second home? Lake Chelan Valley has wonderful communities for you to choose from. The Washington area is also full of amazing amenities perfect for a home away from home. Start your home buying journey today!
Our team at Coldwell Banker Lake Chelan Properties would be more than happy to help you find the second home that is right for you. Call 509.996.2121 or contact us here. Or send an email to info(at)cbwinthrop(dotted)com.