Is Buying A Second Home A Good Investment | Experts Guidelines For Buying Second Home

Not long ago, I found myself considering buying a second home for investment purposes, but I had a lot of questions about the process and not many answers. I went online to my favorite website, Real-estate-yogi.com, to find out more about taking this action, and, as usual, I learned a lot! Here is just a sample of what I discovered.

As I was asking myself “Is buying a second home a good investment?” it occurred to me that perhaps buying a 2^nd home and buying one for investment purposes were different things. Sure enough, when I checked it out on Real-estate-yogi.com, it turns out that they are separate things. An investment property is one that is not your primary residence and is purchased with the goal of earning income from it. There are a few types of investment property: residential rental property, commercial property, and property bought to “flip” – that is, to re-sell for a profit. These are the kinds of things you need an investment property loan for. A second home is one in which you live at least part of the year, aside from your primary residence. To purchase one of these, you need a second-home loan.

I next wanted to know about some pros and cons of buying a second home. Would it be worth it to me at tax time, for example, to pay taxes on the property itself and any income I accrued from renting it out?  Again, I turned to Real-estate-yogi.com for answers. An advantage to having a second house is long-term profits from it. Tax-wise, as long as I don’t charge rent for more than 2 weeks each year, I can deduct the interest on my mortgage and the property taxes from my gross income, just as I can with my first mortgage and taxes. Pretty cool, huh?  A disadvantage is high initial purchase fees. In areas that are very popular for second or vacation homes, it is just more expensive to own property, whether for renting out or residing in.

Did you know that www.real-estate-yogi.com is a free consumer resource website? It has all sorts of information on any number of realty topics, including buying a second home advice, such as what the steps are to buying your second home, beginning with choosing the location in which you wish to live part time and selecting a price range to work within. The website is available all day, every day, and there is always knowledgeable staff on hand to answer phone calls and help you work through your concerns. If you’d like to access the information in the Real-estate-yogi.com database, just dial 1-800-987-1397 for a no-cost initial consultation.