Owning a vacation home was really something that I had never thought about until I saw an ad for an MN lake home for sale that just blew me away. At that time I was actually looking for an area to invest in and this seemed to be the perfect opportunity. I have since really gained a great understanding of why people buy vacation homes and the great many benefits which they are able to offer. If you have been considering a vacation home or you are simply looking to invest some money, here are just a few reasons as to why I would most certainly encourage it.
The obvious reason is that you have a home away from home where you can go and visit whenever you feel like. Not only does this give you a level of comfort when you take a vacation, knowing that all of the designs and the possessions are your own, but there is also a great amount of money to be saved in holidaying on your own property. Bear in mind that it is not just you who may be visiting, but also the family and friends who you can entertain at your vacation home.
Whilst of course it isn’t absolutely necessary, there is a lot of money making opportunity from short term private rentals and this can be a great way to earn some of that investment back. We generally rent the property out for 6 months of the year if possible, and then the rest of the time it is available for us to enjoy. The rental money that comes in is saved and we either use it to maintain the property or as a fund which we may even use in the future to buy another property.
If you choose not to use this as a rental property but instead a second home, then you can count on a kind tax break from the government. The mortgage interest if there is any, and the property tax are both tax deductible if this is not being used as a rental property.
Ultimately a vacation home is an asset and it is an asset which is only going to grow in value over the long term, because that is almost always what the real estate market does, grow. This may be something which your kids can enjoy in later life or perhaps even a way to make money for your retirement, whatever the case, the property is not going anywhere and as long as it continues to appreciate, you can count ons gem long term profits from an investment like this.
There are so many options which you can look into when it comes to buying a vacation rental and whether you look at it as a purely financial investment or an investment for yourself and your family, you are going to be glad that you took the decision to invest.
To read more on topics like this, check out the Budget category