Monday, January 29, 2018 / by Sean Zanganeh
Have you been contemplating purchasing a second home. Now could be a great time, but consider these few details before taking the leap into a second home. We also have a great investment opportunity in Rancho Penasquitos that could be the perfect opportunity for potential investors.
Is your home not giving you the lifestyle you need? Thinking about purchasing a second home? Now could be a great time to do so in Rancho Penasquitos, but there are several things to keep in mind before taking the leap and purchasing a second home.
Does buying a second home make sense financially? Keep in mind not only the mortgage payments, but also upkeep and potentially paying a property manager if you plan to rent out your home. Think about the location and type of second home you want to buy. A town home or condominium may require less upkeep, but you do pay extra fees with those types of properties. Here is a great investment opportunity in Rancho Penasquitos.
Be sure to research the tax implications of owning a second home, both in terms of property taxes and income taxes. Consider how you will be paying for your home. The more money you put down, the better. Perhaps a family member can help with some of the down payment to save on interest. Another popular trend is to go in on a second home with another couple. This could be a good idea if you are only interested in using your home for a getaway for only part of the year.
If you do not rent out your home, or your second home, all interest up to $1.1 million can be deducted from your income. If you decide to rent out your home, things change a bit and you have to report that income. However, if you rent out your home for fourteen days or less, it does not count. You could rent your home out for $30,000 for one week and the IRS would not care. It only counts past that fourteenth day.
Lastly, owning a second home can allow you to reside in a state with more favorable taxes. As long as you live in a state for over half of the year, you can file your taxes in that state. Enjoy weekend getaways and tax breaks if you consider buying a second home and smile as you make your purchase. Purchasing any type of property is a big decision, so be sure to thoughtfully consider your options before purchasing a second home.