Buying a Vacation Home
Buying a Vacation Home Can Be Easy!
Buying a vacation home is completely different from the search for investment real estate, and when you are considering a vacation home you do have to consider a few items.
Overall, buying a vacation home isn't much different from buying a primary residence. If you don't rent it out regularly it will not be considered an investment property so you can get the same mortgage rate that you would get on your primary house. Depending on circumstances, you might also be able to deduct the mortgage interest from income taxes.
Buying a vacation home means you should look for locations that offer relaxing fun and entertainment for the entire family. While location is important for investment property and vacation homes alike, the type of location you're looking for will usually be substantially different from where you are looking for either one.
However there is one place where a vacation home buyer takes some cues from investment real estate--if you expect to keep the property a short time. In this case, along with the personal criteria it’s important to look for property with resale value. While vacation heavy areas can often offer the best of both worlds in this regard, sometimes you're better off looking further afield when buying a vacation home for a short time.
A hot destination means more crowds, more traffic, longer lines, but if you’re keeping an eye on investment potential -- and more than one out of three second-home buyers say they are -- then you want to buy where others want to be. If you use your second home strictly for personal use then the Internal Revenue Service allows you to deduct the cost of the mortgage interest and property tax on your federal tax return.
Wherever you are considering a vacation home you should have a legacy in mind. Look for a place where you can take your children and their children for years to come. Buying a Vacation Home can be fun, affordable and earn you a great place for the family to gather in years to come.