Need a Vacation Home?
Whether you're looking for an a getaway or a place to eventually retire, you'll need to plan. Whether you are an investor or not, you want your second home purchase to be a sound financial move. Many second home owners complain that the house endes up costing more than they'd ever imagined. The "True Cost" includes not just the purchase price, but ongoing expenses, factoring in any extra costs based on the fact that you won't be there every day, such as hiring a management company and the relatively high cost of hazard insurance.
Buying a second home isn't much different from buying a primary residence. If you don't rent it out regularly, so it's not considered an investment property, you can usally 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*.
When you shop for a second or vacation home, you have two friends: time and your primary home's equity. There is no need to rush to find a place. Weigh the pros and cons of each place.
*The information contained in this article is for informational purposes only and may not reflect current tax year rules and regulations. Youll need to consult with your tax attorney, CPA, or the IRS for current tax year rules, restrictions and regulations.