Dreaming of a Second Home? Introducing Newport Shores Condominiums
Second Homes are gaining in popularity with the recent decline in interest rates. Fall is one of the best times of the year to pick up a bargain. So, whether you are looking for a place to enjoy with family and friends or hoping to make a profit, buying a second home or vacation home is great way to invest your money. In narrowing your search for the perfect property, you may want to ask yourself the following questions:
What am I looking for in a second home?
With so many options to choose from, it is important to decide exactly what you want in a second home. For instance, if you are strictly looking for a vacation home then you may want to consider location and size. Will you be entertaining and having family come and stay? How often will you be using the property, and does it need to be accessible year-round? Location is a key factor depending on where you are looking. You will also want to consider your options between a single-family home or a condo. A condominium is a convenient way to shut the door behind and not have to worry about lawn care or snow removal.
What is the right time to buy a second home?
If you are approaching your second home purchase strictly from an investment point of view, you may want to review the market in your desired area. Have a local agent in the community do the homework for you. Getting in early on the purchase of a property may yield you a better price since you will not have to compete with other buyers which tends to drive the price up. They may even have private listings or know of properties that will be coming on the market in the next few months. Focus on areas with a steady rise in the market. For example, over the past 5 years Port Washington, Wisconsin had a 63% increase in the average sale price of condominiums. The location, outdoor activities, restaurants, Marina, and other activities the city offers has created an influx of second home buyers, thus making the area an attractive option for both investment and vacation home buyers. This is why our newest development Newport Shores has already sold 5 units.
Are there any tax benefits or financial advantages to owning a second home?
Buying a second home is not that different from purchasing a main residence. We recommend using a local lender for your purchase, because they have the expertise and knowledge of that market which will help avoid future problems within the transaction. Tax implications on second home purchases vary significantly. It’s always best to discuss your second home purchase with your accountant. Generally, the mortgage interest and property taxes are deductible. If your second home is an investment or you choose to rent out your home for additional income you can also deduct certain expenditures, but you also must report your income to the IRS.
In my experience with second home buyers, they all seem to want the same things. They have done their homework and spent time in the area they are looking to purchase. They have familiarized themselves with the locals, attended the festivals, biked the trails, and ate at the restaurants. Most of second home buyers know exactly what they are looking for, and the amount they want to spend. At closing time, it’s a celebration of their life and what has brought them to this point.
Powers Realty Group is a distinctive boutique real estate broker focused on the needs of customers delivering exceptional results. We are the trusted local experts. Call us today about buying or selling your home.Call Suzanne Powers