Yes or No for Summer Homes?
Maximum Exposure Real Estate opines, “Buying a vacation home is
great for a number of reasons. Not only does it serve as a great place to spend
time away from the world, but it also works as an excellent investment for you
as well. Yes or no on summer homes?
Noted financial advisor Dave Ramsey said, “The idea of owning a second
home is tempting. You can buy it near your favorite vacation spot or in your
own city. But the truth is, for a lot of people, the purchase of a second home
is a bad idea. Real
estate is riskier than most people realize—and it’s not just
about the money you tie up in your property.
Yes or No for Summer Homes?
- A great place to get down. Returning to/ the same place time and after time can be comforting as you become familiar and comfortable with the location. It allows you the freedom to be yourself and the opportunity to expand long-term friendships with residents – you can become part of the social fabric.
- An excellent investment for you. While all assets fluctuate in value in the short term, vacation properties are more likely to retain their value and appreciate because they are located in popular areas with a geographically limited supply.
- Rental income. If you decide to rent your home, but personally use the property as well, you’ll need to determine whether you’re eligible to deduct operating expenses. To determine this, add up the days you rented the property. If you occupied the property fewer than 10% of the days, you rented it or for less than two weeks – whichever is greater – you can deduct all of the operating expenses of the home including interest, utilities, cleaning fees, lawn maintenance, and management fees.
- There’s the
money. Most people have higher expectations for a property that they
intend to own, rather than to rent. These expectations can translate into high
prices. In popular areas where space is limited, the house may be priced higher
than the cost of your primary home. In addition, new homeowners typically incur
the costs of furnishing the new purchase with everything from furniture to
linen and dishes, costs that can easily exceed 25% to 33% of the purchase price.
- It takes
time and hassle. How much
time do you spend on the upkeep of your home? While a second home may not
double that time, it can mean many more hours and headaches than you think. Dave Ramsey said, “If this is a vacation home that will remain unoccupied most of
the time, just imagine the damage a burst water pipe could cause if it goes
undiscovered for weeks. Your
vacation spot is also an easy target for vandalism and burglary,
so you’ll need a top-notch security system and insurance designed to cover
damages that are more common in vacation homes.
- Same ole,
same ole. If you are
paying a significant amount of money each month for a second home, you may feel
that you need to constantly and exclusively visit the property to justify your
investment. How much time do you have for vacations? Do you want to go every
year to the same place?
We are P2 Properties, LLC, the areas’ premier real estate
our inception, we have been helping homeowners, along with improving
communities in every city in which we work.
have extensive knowledge of the business, a network of resources, and years of
expertise. P2 Properties can assist homeowners with a wide variety of real
estate problems. We pride ourselves on our reputation for working one-on-one
with each customer to handle their situations.
the ability to directly purchase homes and make cash offers, we can create an
extremely fast and hassle-free transaction.
Call us today at 832-220-9440
Photo by Mohamed Ali on Unsplash