When you think of the American dream, a new home with a white picket fence may be the first thing that comes to mind. For some, however, the dream has evolved into owning two homes.
Though two mortgages may sound unmanageable, there are plenty of benefits that make owning a second home worth it.
If you’re not sure what the benefits of owning a second home are, be sure to keep reading for some of the most compelling reasons you may want to take on a second mortgage.
1. Tax Benefits
If you own a second home, you may be eligible for a tax deduction on your second property. This is one of the best reasons, as you can essentially save money on a second home!
Though some may wish to rent their home, if you keep it unoccupied for 50 weeks of the year, you’ll be eligible for a deduction of the interest rate on your mortgage.
If you choose to rent your home, you can still qualify for tax benefits. Be sure to track the rental expenses, as you can deduct them from your taxes at the end of the year.
2. Passive Income
Are you looking for a passive form of income? If so, transforming your second home into a rental property is a great way to generate profit.
Purchasing a second home in or near a tourist-heavy area is a great way to ensure that your home gets put to good use. You don’t have to worry about
Areas in and around beach towns, amusement parks, and historic towns are ideal, as there’s always someone visiting. You can even use it to participate in a house exchange. You can have a look at the process of swapping homes.
Remember, you’ll want to invest in long-lasting appliances for your rental home. This will keep your maintenance costs down, ensuring you get the most bang for your buck for your investment property.
Are you in desperate need of a vacation? If you have a second home, you’re in luck. You can pick up and head to your vacation home whenever you want — assuming you haven’t already rented it out!
You can also use your second house for off-season storage. This means you can store your summer items like surfboards and lawnmowers at your secondary residence to free up space in your primary home.
If you plan on storing items, be sure to keep the space organized, as you don’t want to treat it like a glorified storage container.
The Benefits of Owning a Second Home Are Undeniable
With so many benefits, it’s no surprise that owning second property is becoming a reality for many Americans.
Remember, you’ll want to look into all of the pros and cons before taking on a second mortgage. Though there are plenty of benefits, take time to look into your finances before deciding.
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