Real Estate Pro Articles
   
   

Vacation Homes or Second Homes - Tips Before Making the Purchase



[Valid RSS feed]  Category Rss Feed - http://www.realestateproarticles.com/rss.php?rss=268
By : Vicki Hat    99 or more times read
When you just finished paying for your first home, you might decide to go on purchase another one. It may not be soon but years later, the desire may come. It could be awakened for several reasons. There may be a need to purchase a second home for you to use as a getaway. It could be situated within your a particular vacation place that you constantly visit. Another reason for getting a second home would be a desire to earn extra income. While you are not using it, you might decide to have a part of the house rented (if it was an apartment time. Or perhaps, just later on, you want to decide to move in it for retirement or for any relocation reasons.

Definitely, having a second home might come as a good idea. At any rate, one still has to consider several things before jumping into such an expensive purchase.

Financial Considerations

Number one thing that any homebuyer should look into is their current financial status. Even with the current house values still not being able to fully recover, the purchase still involves thousands of dollars. There is a need for you to ask yourself if you can really afford the purchase. Do you remember how much money you had to raise for your first home? Well, you would still have to do the same thing and pay closing fees. You still have to get mortgage, where you have to pay back on a monthly basis. Ask yourself if you are up for this one more time.

Location, Location, Location

This is forever a great consideration in home buying. The location should help serve the purpose of making the purchase. For example, you bought a house for vacationing to have unlimited stay every time you want to visit your favorite getaway spot. Then you should buy a house near to it. But if not within the vacation spot, at least it is located somewhere which makes travel more convenient for you. Or better yet, if you plan to rent out the property, you also need to know if your target market would like the place. And if you want bigger bucks for rentals, the location should have great market trends for the kind of property you are offering.

Location creates a big impact to your lifestyle and your rental business. Before buying your second home or vacation home, it should be located in a good neighborhood where houses have good market value, packed with amenities, low property taxes and accessible to lots of public facilities. Yes, it could be hard to find them but make sure your location will help you attain your goals.

Taxing

Different purchases involve tax as always. For your second homes or vacation homes, tax treatments would vary according to use. If your second homes would be rented out for some reason and it was just a matter of 2 weeks, then you do not have to worry about tax because this is totally an exempt. Even if you rented out the property for a thousand per day within those two weeks, you do not have to declare anything to the IRS. On the other hand, if you rented out the property for more than two weeks, the income you earn is already taxable. However, you can apply deductibles to lower your income tax payable. Operation costs, travel costs, mortgage and other expenses can be declared just as long as the rules of the IRS as to tax will be observed and applied.

Knowing the taxing benefits allows you to manage your second homes properly and know optimal ways to own them while lessening your burden financially.
Do you want to buy vacation homes or second homes in the best locations? Find them here: Fountain Hills Waterfront Property, Fountain Hills View Homes and Townhomes for Sale in Fountain Hills.

Related Articles



Actions
Print This Article
Add To Favorites



Sponsors

 

 

© All rights reserved to Real Estate Pro Articles