ORLANDO, Fla. (Ivanhoe Newswire)– Most second homes are used for vacation or family retreats. According to the National Association of Realtors’ Investment and Vacation Home Buyer, 33 percent of second homes are in a resort. The Wall Street Journal says most second homes are 1,500 square feet and over 35 percent of second home owners paid in cash.
There were over eight million second homes reported in the u-s census last year. On average, it cost nearly 200 thousand to own another home. So, what do you want in your second home?
To get the most out of your home away from home. Rent it out. Up to 35 percent of all second homes in the u-s are rented out. You can register your home on sites like AIRBNB, VRBO or TripAdvisor to help pay it off. Save yourself money on t-v. Use one streaming service to dispense cable at both homes. You may also be able to write it off on your taxes. Owning a second home allows you to deduct the mortgage interest and real state taxes and if you prepay the interest when you close the loan you can deduct the interest in the year paid.
“It depends on your net worth. It depends what tax situation you’re in,” Celine Pastor, financial advisor, said.
With ways to really love your second home.
But buyer beware, not all communities allow short term rentals, so if you are depending on that income, check with local and community HOA rules before purchasing a second home.
Sources: https://www.wsj.com/articles/how-to-get-the-most-out-of-a-second-home-11553479561
https://www.hostfully.com/state-u-s-vacation-rental-industry-2018/
https://web.blockadvisors.com/second-home-tax-tips/
https://thelendersnetwork.com/compare-loan-offers/
https://thelendersnetwork.com/buying-a-second-home/
Contributor(s) to this news report include: Keon Broadnax, Writer and Robert Walko, Editor.
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