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BUYING A LUXURY VACATION HOME: IS IT A GOOD IDEA?

Have you ever considered buying a property in your favorite vacation destination? If you’ve been dreaming of buying a cabin in the woods, a cottage on the beach or some other retreat, you have compelling reasons to pull the trigger. As coronavirus cases surge in parts of the country, being able to shelter away from crowded areas has a lot of appeal. What’s more, mortgage interest rates have sunk to record lows. Despite an uncertain housing market, second home purchases remain strong. Here are the top 5 reasons to purchase a vacation home:

 

POTENTIAL FOR RENTAL INCOME

Although your primary reason for purchasing a vacation home is to enjoy your time off work in a relaxing location far from home, you’ll likely only be there during specific times of the year. So, why not turn your vacation home into a temporary rental property for periods when you are away?  In addition to gaining a second income from the rental property, you may even be able to deduct expenses for the property at tax time. Be sure to contact your tax professional for detailed information regarding your specific property and financial situation.

 

ADDITIONAL TAX BREAKS

Speaking of potential tax benefits, any home you own provides a significant tax break. Especially if you use the property solely as a second home, your mortgage interest and property taxes may be tax-deductible. Again, be sure to seek advice from a tax professional before making any assumptions about your tax situation.

 

IT’S CONVENIENT AND FAMILIAR

If you’ve ever planned a vacation to a place you’ve never been, you already know the challenges that come with the experience. Not only are you in the dark as far as how enjoyable the trip will be, but you have to trust online reviews and photos of hotels. Once you book your reservation, you can only hope that your vacation spot turns out to be the wonderful place you imagine. Alternatively, if you already have a vacation home, you never have to worry about the unknowns. You can have peace of mind in knowing exactly what to expect in advance. You hand-selected and purchased the property yourself, so you know you’ll love the area. Plus, after a few weekend getaways in your new place, you’ll grow to love the familiarity of coming home to your second home.

 

PROFIT OVER THE LONG TERM

Although all property fluctuates in value, vacation properties are more likely to appreciate due to their location in popular areas. Especially if your vacation home sits on land where it’s difficult to build, like on the side of a mountain or near a small piece of shoreline, it can increase in value as more people visit the area and want to move in.

 

THE PERFECT PLACE FOR A CELEBRATION

Another fantastic benefit of purchasing a luxury vacation home is that you never have to search for the perfect venue for your cousin’s wedding reception or your grandmother’s birthday party. In your gorgeous vacation home, hosting memorable celebrations is easy and stress-free. Instead of wasting time searching for a venue and then worrying about whether it will work out to your specifications, you can spend your time focusing on celebrating the momentous occasion ahead.

 

Whether you’re looking to purchase your luxury vacation home in the US or abroad, the time to invest is now. Make your dream a reality by beginning your search for the perfect luxury vacation home today.

If you have any questions on this topic or anything else real estate related, or if you need any additional information please don’t hesitate to call, text or email me at 310-738-8098 or tim@thedurkovicgroup.com.