According to the National Association of Realtors, second home sales are soaring – up 10-percent between 2011and 2012.
You will find shopping for a vacation and/or an investment home is best done in off months when there is less competition from other buyers. And, if you plan on financing your vacation home, interest rates still continue to be incredibly attractive.
Reasons to buy a vacation home:
Additional stream of income:
- While approximately 80-percent of people buy a vacation home for personal use rather than an investment, you can still choose to rent your property out to make your mortgage payments more manageable.
- If you paid cash for the property, the rental income could cover your insurance, taxes, and upkeep, essentially providing you with a free place to vacation.
- When you own a second home, you may be able to deduct expenses associated with the property to help offset your income. If you choose to reserve the property for personal use only, you can still rent your home out for less than 15 days each year and collect rental income without having to pay taxes on it.