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.

Buying a vacation home is a huge financial decision, but it is one that can bring many advantages. If you are thinking about purchasing a vacation home soon, here are some of the ways you can benefit.

1. Simplify future vacation planning. If you buy your vacation home in a location that you frequently visit, you will remove a lot of the work of trip planning in the future. You will no longer need to worry about booking accommodations. Since you can keep some of your possessions in your second home, you also do not need to pack as much when you depart on your trip. You might even find yourself going on vacation more often; scheduling a trip is a lot easier when no reservations are required, and finding the energy is also easier when it doesn’t involve so much work.
2. Save money on vacation accommodations. Staying in hotels can be very expensive, especially if you are visiting a location on-season. If you like to visit for weeks or even months at a time, the financial drain can be especially demanding. Buying a second home is also expensive, but it delivers you a lot of added value that you would never get out of a hotel.
3. Enjoy a “home away from home.” Some people love staying in environments like hotels that feel far-removed from their everyday lives. But other people dislike that feeling, and much prefer to stay where they feel at home, surrounded by familiar objects and routines. If you are in the latter category, being able to stay in your own home can be a huge upgrade to your experiences visiting your favorite vacation destination. You also do not need to deal with rules and restrictions set by a hotel manager; it is your home, and you are in charge. That means you can use it in ways that you may not be able to use a hotel room, such as hosting large parties. You can come and go when you please with no check-ins or checkouts.
4. Stay connected to a special place. Many people choose to purchase a vacation home in a place that has special meaning to them. Perhaps it is where you grew up, or where you travel most frequently, or it is a place where a major life event took place. Or maybe it is just a location that you find especially beautiful or relaxing. Regardless, when you own a home there, you will feel connected to it even when you are back at your primary residence. You become a part of the local community, rather than simply a tourist.

Buy Your Dream Vacation Home

Now you know a few of the ways you can benefit from owning a vacation home. Be sure to read on to 8 Reasons to Buy a Vacation Home, Part 2 to discover more advantages of buying a second home. Ready to apply for a mortgage for your vacation home? Please contact us at (248) 788-0800 to schedule your consultation. We can help you buy a vacation home in Michigan or 14 other states.