Most of us have been stopped in our tracks due to the Coronavirus Pandemic; Vacation plans are cancelled; cabin fever is in full effect. Our homes have become the mecca of our day-to-day life. Our homes have become our schools, our offices, and our haven from uncertainty. As the paradigm continues to shift, “home” remains the safest place to unwind. If this fits your bill, it may be a great time to consider investing in a vacation home. Your own home away from home with the built-in assurance that you have created a safe atmosphere for yourself and your family.
The Benefits of a Vacation Home
The biggest advantage under these current circumstances in owning a vacation home is having a DEPENDABLE place to escape to. There is the added benefit of having a home in an area you absolutely love even if you cannot work remotely. If you live in Michigan or Florida, imagine making your dream a reality to get away to on the weekends!
If the prospective cost makes you cautious, another benefit to owning a vacation home is the ability to rent it out while you are not vacationing there. This is a strategy that could more than reimburse you for the house over time!
Leveraging Your Existing Equity
While this may not seem like a feasible option for everyone, you would be astonished that this is possible for more people than they might realize! If you are in a financial position that would allow you to make a sizable down payment on a vacation home, then that is the idyllic situation. Another potential option is to tap into the equity you have in your present home to help fund a down payment for your brand-new home. Mortgage rates are at extraordinary lows making this the PERFECT time to seriously contemplate.
Other Things to Consider!
There are many tax allowances associated with owning a vacation home. You can deduct your mortgage interest and property taxes just like your primary residence. *It’s important to note when looking for a property that to be considered a “vacation home”, it has to be at least 50 miles from your primary residence.* You may also want to consider constructing your own dream vacation home and personally designing it to your heart’s content. It is possible to a purchase a lot and build your home for a smaller amount than that of buying an existing home.
If the events of this year have postponed your vacation plans, then maybe this blog post has helped you decide if a vacation home is right for your future! A personal retreat could be exactly what you’ve been looking for; a place for R&R. If you would like to know more about financing options for a second home, our Hall Financial mortgage experts are available to help you move forward!