Purchasing a Vacation Home: A Benefit to Your Mind, Body and Wallet
When the weather warms up and the sun is shining, many of us dream of getting away from the everyday routine to unplug, relax and recharge. Finding a second home outside of your current location can often be the perfect place to do just that. While having a place to unwind is desirable, read on to find out why purchasing a second home could be good for more than just the soul.
A Lucrative Investment
Besides the potential tax benefits, you can put your second home to good use by renting it during times you’re not using it. Many services are available to help you find renters and create some additional income to offset the added mortgage. Make sure you think about things like location, access and appeal to renters when looking at properties if this will be part of your plan. Work with your tax advisor to fully understand the tax implications of purchasing and renting out your second home, too.
Headlines show home values increasing and rates staying near historical lows. These are all good reasons to purchase a second home now, but what about the future? Traditionally, vacation homes tend to retain their value better than average due to likely being located in a popular area. There is limited shoreline available and only so many holes on a golf course. While you will enjoy your vacation home now, you can also hope that it will continue to benefit you financially well into the future.
Making the Purchase
Many people are surprised to find that purchasing a second home is very similar to purchasing a primary residence. One difference is that with a primary home, the down payment often comes from the sale proceeds of a previous home. So where do the funds come from for a second home?
Don’t overlook the equity in your current home when thinking about your next purchase. Cambria® Mortgage™ can help you evaluate your options and find a program that uses your assets to your advantage. One of the best things to do is to talk to your mortgage consultant early in the process, even before you begin your search. This way, your mortgage consultant can help you become familiar with the process and programs available so that you can enjoy your search and find your perfect getaway.
To get started, call Cambria Mortgage at 952-942-0110 or visit CambriaMortgage.com. Our team of mortgage professionals will provide personal, hometown service with sound advice and impeccable attention to detail at every step of the process.