8 Reasons to Buy a Vacation Home, Part 2

If you are thinking about taking the leap and buying a vacation home, you are making a decision that can benefit you in many ways. In this two-part series, we are sharing some reasons to buy a second home with you. Here is what we went over in 8 Reasons to Buy a Vacation Home, Part 1:

1. Simplify future vacation planning.
2. Save money on vacation accommodations.
3. Enjoy a “home away from home.”
4. Stay connected to a special place.

Let’s go over a few more vacation home benefits.

• Rent it out when you are not using it. You will not be spending all your time in your vacation home. Instead of letting the house sit empty, you could consider renting it out to other vacationers. That is a great way to “hack” your mortgage on the home, offsetting what you need to pay each month. If you buy a property in a vacation area that is popular among affluent tourists, you may be able to set high rates and still fill the house consistently.
• There may be tax benefits. Owning a vacation home allows you to make tax deductions. Talk to your tax professional about what the impact could be on what you owe. The savings may be substantial in some cases, which could make owning a vacation home more budget-friendly than you realize.
• A second home can be a valuable investment. In our previous post, we mentioned how both a vacation home and extended hotel accommodations are expensive, but that a home provides you with much more value. Some of that value is financial. When you pay money for a hotel room or a long-term rental, that is money you can never get back. But when you pay on the mortgage for a second home, you build equity in the home. If you decide to sell the home later down the line, you can get that investment back, assuming the home has not lost value. And if it has climbed in value, you can sell it at a profit.
• It may be able to serve multiple purposes. One more advantage of owning a vacation home is that it gives you more flexibility with how and where you live your life, both now and in the future. It also gives you a resource you can share with others. Some people who own vacation homes like to make them available for short trips for their family members, for example. Or perhaps you have a family member or friend who needs a temporary housing solution while they work through a life transition. You could let them use your vacation home for a few months. An arrangement like this could offer other benefits as well since they could take care of cleaning and maintenance for you while they are there.

In some cases, you might even decide to make your vacation home your primary home or full-time residence in the future.

Maybe you need to live in a certain metropolitan area because of your job right now. But you are planning on retiring in your favorite vacation area. You could buy a second home to use as a vacation home, with the plan to move into it permanently once you no longer need to commute to your job. At that point, you can convert your old primary residence into your new vacation home or sell it.

This is something to think about when you are shopping for a house. Consider picking a property that has a floor plan that will be suitable for you as you get older.

Buy a Vacation Home with a Competitive Mortgage

Excited to start enjoying the many advantages of owning a vacation home? To apply for your mortgage for your second home, contact us at (248) 788-0800 to schedule your consultation. We can help you buy a vacation home in Michigan or 14 other states.