Purchasing a second home is often a great option due to the wide range of benefits that it can provide, such as being able to provide you with rental income when you're not using it. Listed below are three reasons to purchase a second home.
There Are Numerous Tax Benefits Available
A major reason to purchase a second home is the fact that the government has made numerous tax benefits available for those individuals that choose to buy a second home. These tax benefits can include everything from being able to write off any repairs that you have to make to your second home due to it being a fixer-upper, and the ability to write off any property taxes that you have to pay on your second home. In addition, you can often also deduct the interest that you have to pay on your mortgage for your second home.
You Can Use The Home For Your Retirement Plan
Another reason to purchase a second home is the fact that you can use that home for your retirement plan. For example, you could choose to buy a second and less expensive home in another part of the country that you could potentially pay off before you retire. In that situation, once you retire and no longer need to live near where you work or need a large home for you and your children, you can simply sell off your primary residence and retire to your small and paid-off home that will not drain your retirement funds on large mortgage payments or rent payments.
You Can Boost Your Income
Finally, you will want to consider purchasing a second home because it can help you boost your income whenever you are not using that second home. Whenever you are not using the second home, you can simply rent it out to an interested party that could potentially pay for at least a large portion of the mortgage on the second home. Depending on the popularity of the area in which the second home is located, there is a good chance you could charge a premium to rent that home and use it to pay the entirety of your monthly mortgage payment on that home, and possibly still have money left over to use on your primary mortgage or to simply increase your savings.
Contact a realtor today in order to discuss the many benefits that purchasing a second home can provide and to discuss what you are looking for in a second home. The numerous tax benefits that are available and the fact that you can use the home for both your retirement plan and to boost your income are all valid reasons to consider purchasing a second home.