Have you always dreamed of owning a vacation home? It’s not a decision to be taken lightly, but if it is something you’ve always wanted, the means for making that dream come true are not as difficult as you might think.
Conventional Financing – Purchasing and financing a second home it a little different than purchasing a primary home. Some of the low down payment programs are not available, but with conforming loans, as little as 10% down can get you started.
“Cast Out” Financing – Are you thinking about a cabin in the woods, a summer cottage, ski or golf course condos? Unique properties may have appeal, yet they may also need non-conventional financing. If you can, using equity from a primary home via refinancing can be a smart solution that also provides you with “cash buyer” status.
Rental Income – You should never purchase a vacation home if you’re dependent on rentals to make it work. However, if you will hire a manager and don’t mind sharing, the income can be a great subsidy.
Tax Benefits and Appreciation – You should always check with your tax pro, but owning a second home can still carry tax advantages that serve to reduce the actual cost of owning. Appreciation is never guaranteed, yet over ime, value increases can reward you handsomely for decisions made today.