Purchasing a Vacation Home

What do I Need to Know Prior to Getting a Vacation Home?

Below is a list of things to consider before buying a vacation home.

What Is a Vacation Home?
A vacation home is defined as a second home, one where you spend a substantial amount of time away from your primary residence. Vacation homes are generally used by the owner, family or friends, as opposed to being rented.

Tax Advantages of Vacation Homes
Buying a vacation home can help you not only build net worth, but also help you take advantage of tax benefits. You will want to speak with your tax advisor to learn about any possible tax deductions that you qualify for. If you’re thinking about downsizing, you could use the profit from the sale of you primary residence to buy your vacation home.

Where to Buy?
There are a couple things to consider in determining the location of your vacation home. You may want to purchase a vacation home in a quieter town that could be the next up-and-coming vacation spot. If you are looking to make a return on your investment, this type of purchase may take longer for that to happen. Or you could buy in a sought-after area when the home is in a place where others want to be, which protects your investment and justifies the premium price you may be paying.

What are your Financing Options?
There are many ways to fund your vacation home purchase. You might be able to use the equity you’ve built in your primary residence to finance your second home. Contact us and we can walk you through your options.

Contact us and we can walk you through your options. Get started today!