The Benefits of Buying a Second Home
Is buying a second home on your wishlist?
We wouldn’t blame you! Purchasing a second home, whether as an investment property or a personal vacation property, is a great way to increase your assets and your income. It can also seriously improve your quality of life, especially when purchasing somewhere like Seven Mile Island, which is considered by many to be the best place to buy a vacation home in New Jersey.
Don’t just take it from us, though. There are lots of good reasons to consider a second home, both while you own it and when (or if) you choose to sell it. And, to help you make the most informed decision, we’ve outlined some of those benefits below.
Why You Should Think About Buying a Vacation Home
Buying a vacation home—either one you visit yourself or one you rent out to others—is one of the smartest real estate investments that you can make. Here’s why you should consider taking the plunge.
- Long-term profit potential
The general appeal of vacation properties is that you get to own your own slice of somewhere you love to visit—and that others love to visit, too. With so many people heading to the area for the same reasons you do, you can rest assured that you’ll have plenty of available renters, as well as interested buyers if you do decide to sell later on.
- Tax benefits
You can deduct both the mortgage interest (only up to $1,000,000 borrowed) and the property taxes (only up to $10,000) on your second home from your annual taxes. And, if you buy a fixer upper, you can also write off certain home improvements that you make. While these tax benefits always apply to primary residences, it’s good to know that you can take advantage of them for a second home too. We recommend that you always consult your tax advisor or consultant to fully understand your potential tax benefits.
What sounds better to you: staying at a hotel when you want to go to your favorite place or staying in your own home? A vacation home gives you the convenience to travel when you want with the assurance that you’ll always have a comfortable place to stay. (And a place that’s already stocked with the items you’ll need for a great trip.)
Owning vs. Renting a Home: How Does It Compare?
One of the biggest questions with buying a second home comes down to owning vs. renting a home and which is preferable. This is a personal decision, but both offer their own advantages.
- Investment potential
- Freedom to modify property however you choose
- Mortgage costs stay fixed
- Opportunity to make extra income
- It’s less expensive up front (no down payment or closing costs)
- No property taxes
- No maintenance responsibilities
- Lower insurance costs
Ultimately, it’s up to you to decide whether buying a second home is in your future. And if you’re looking for a home on the shore here in either Avalon, Stone Harbor, or Sea Isle City, you’ll certainly have no shortage of fantastic properties to choose from.
At the RJ Soens Group, we work closely with those who are buying or selling second homes to keep the process running smoothly and ensure that everyone gets the best deal possible. In addition to helping you find your perfect vacation home, we can also assist you in navigating all of the additional considerations that come with it, including property management if you decide to rent it out.
There are so many benefits to buying a second home, plus tons of reasons to own your vacation property instead of renting it. If you’re ready to take the leap, contact our team today and we’ll get to work finding you the best vacation property at the best price. You’ll have a second home you love—and a personal place to travel whenever the mood strikes. Sounds like a win-win to us!