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WHY
MAKE YOUR HOME A VACATION RENTAL
PROPERTY?
1)
Investment Opportunity -
Obviously, owning a 2nd home is a major investment.
While the real estate market is currently unpredictable,
vacation properties tend to hold their value better
and you build equity in your
property with each passing month.
2)
Additional Income
-
Beyond being an investment, the income you receive from renting
your home can
help defray the costs associated with owning a 2nd home. (i.e.,
mortgage, taxes, insurance, utilities and other expenses)
3) Tax Advantages
-
Depending how you structure your business and the
amount of gross income you have, you can take
advantage of tax-saving opportunities. If you
meet certain criteria, you can deduct for home office expense,
travel costs, maintenance costs, services, etc. Check with
your tax consultant to identify what advantages might apply to
you.
4) The
Chance to Escape -
Have you always wanted your own little place by the water or
out in the country? You can have your own little piece of
paradise, make it what you want and be able to spend time there
yourself.
You can
maintain a comfortable home that you don't mind sharing with
others.
5) Retirement
Benefits -
Perhaps you are considering buying a 2nd home with the intention of it
becoming your primary residence in retirement. By
purchasing now, you can start shaping it into that idyllic place
you want it to be when the time comes and enjoy it in the
meantime as well.
Some
interesting statistics from the National Association of Realtors
per a 2nd Homeowner Survey conducted in 2006:
There are 6.8 million vacation homes in
the United States.
3/4 of 2nd home owners purchased for
personal use, although 1/3 also wanted to diversify investments
and 18% intended that the home would become their primary
residence in retirement.
The median size of a vacation home is
1,480 square feet. 65% of owners said their vacation
property was a better investment than stocks.
The median down payment for a vacation
home was 27%.
11% of vacation home owners say they
were planning to buy another home within two years.
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