MORTGAGE OR CASH?
In 2013, 46 percent of all vacation-property buyers paid
cash for their new homes. For those who choose to take
out a mortgage, it’s become easier within the last couple
of years. Low interest rates are still very appealing, and
remember, your mortgage interest on your second home
is tax deductible.
TO RENT OR NOT TO RENT?
Even for those second-home owners who have purchased
for the lifestyle, it’s quite popular to rent your home during times when you aren’t using it. However, it’s not advisable to think that you can cash flow your property
with rentals. You’ll need to check with your accountant
on all of the appropriate tax consequences of renting
KEEP YOUR VACATION
Keep a second wardrobe at your second home. This
makes it easier for you when travelling back and forth—
no need to pack and unpack every time you visit. That
means extra shoes and toiletries too. You’ll also want to
leave dry goods stocked, like spices, canned goods, flour,
sugar, etc. Then, when you arrive, make a quick stop at
the local grocery for perishables. Some destinations offer concierge services to stock your home prior to your
arrival with all of your favorites.
Owning a second home is a great way to diversify your
portfolio while getting optimal enjoyment. It’s also a
good way to purchase your future retirement home. I-L