Why own a second home? The simple answer is real estate is a good long-term investment. When homeowners crunch the numbers between initial investment in the form of down payment, debt load of the mortgage value and current market valuation of the home they live in, almost all will find that property is the most profitable investment they ever made. If the home you live in is such a great investment, how about a second home, or even more?
Second Home Considerations
An important thing to consider when buying a second home is how you plan to use it. If your second home will be used only as a vacation getaway, the needs you have – and the decisions you’ll make – are very different than when buying a second home for investment purposes. If you plan to use a second home both for vacationing and for rental income, there are further considerations, particularly with regard to tax status.
The second home bought to eventually become your retirement home brings another set of variables into the buying equation. Just looking at these four possibilities – vacation, investment, retirement and mixed-use – makes it clear a second home isn’t a purchase to make blindly. It’s important to do some homework about the property, and to really get down and understand what purpose the second home has in your portfolio and lifestyle.
Different types of second homes offer a number of different tax breaks, and each type should be purchased looking at criteria relevant to its end use. A lakeside second home bought purely as a vacation and weekend getaway property is going to be attractive for much different reasons than a second home purchased for its investment potential.
The Second Home Purchase Process
Purchasing a second home is unlike buying your primary residence. You need a real estate agent with proven knowledge of vacation and second home market conditions. Crestico Realty serves some of the hottest second home markets across the country, including beachfront, ocean view, lakeside, mountain and urban second homes. We can help you find your perfect second home close by, or connect you with a qualified Crestico Agent to find you one wherever your heart desires!
Whether you’re looking for a cabin by the shore, an escape in the mountains or an urban condo investment opportunity, we’ve got the resources and expertise to help you find the right second home for you.