The topic of buying a vacation home is becoming increasingly more common as the economy continues to strengthen. This week we are going to build on the topic of owning a second property and discuss the many great benefits that come with owning more than one piece of real estate.
Family Vacations One of the biggest costs associated with taking a vacation lies in hotel accommodations. When you own your vacation home, this is one less expense you have to worry about when it comes time to get away. Not to mention, the added bonus of having an entire house at your disposal versus a one bedroom hotel suite. A 5 day vacation rental can easily match what it costs to make a mortgage payment on your own vacation home.
Stress-free Rental Property
While most people only take a couple vacations a year, you will have the accessibility to take more now because you own the home. When your not using your vacation home, you can rent it out and the home can pay for itself.
The easiest way to do this with minimal stress is to use a property management company to handle your renters and maintain the property while you’re not using it. They will charge a small fee or percentage of the rental price, but the benefits offered are well worth it. Companies like this make renting your vacation home a breeze by taking care of the marketing and renter-verification for you.
They will ensure that your property is cleaned, secure and make sure you get always get paid. Services like this can even maintain lawn care and notify you when any items need maintenance or other attention and they come highly recommended by current vacation home owners.
Income and Cash Flow Depending on how often you choose to rent your vacation home, the income you obtain from it can easily surpass the expense of owning the home, giving you an additional source of income. This can really help to offset any financial investment issues you may otherwise run into by owning two homes. With one of them paying for itself and supplementing your existing income, it can prove favorable for you with future investment ventures you may want to explore.
Tax Benefits Mortgage payments, home equity interest payments and property taxes may offer the opportunity for tax advantages. Of course you need to consult your tax advisor regarding the exact deductibility of interest, but more often than not, it’s a win for the home owner.
Asset Appreciation Property investments are good investments to make as they provide the owner with a long-term asset that generally always increase in value. Of course, the extent of increase is dependent on property and location, but most generally real estate investments are some of the safest places to put your money.
Questions about Lendem Financial mortgage loan options? Why you should think about using a mortgage broker vs a bank? Using a Mortgage Loan Officer that has access to all sources of lending institutiuons helps people get the best loan for their situation and offers all options on the market vs the programs at one bank. Call Todd Rubick of Lendem Financial and tell him why the bank said no... If your tax returns do not show your true income, or credit is less than perfect... Full service all source lending strategies will be offered for those that need them.