Although it’s easy to imagine how much you’d enjoy a vacation home during the summer, there are plenty of other reasons to consider buying one. With an active housing market and mortgage rates still extremely low, now might be the perfect time to think about investing in a vacation home. Although this decision will require a lot of commitment – both personally and financially – along with plenty of research and preparation, investing in a vacation home can provide plenty of its own benefits, too. Check out these 6 reasons to consider buying a vacation home with your Pagosa Springs real estate expert.
1. Boost Your Finances With Rental Income
Owning a second home gives you the opportunity to rent it out when you’re not living in it. This could be in the form of a VRBO property or a full time rental property, either of which can provide a lucrative source of passive income. If you have the cash flow, the time and ability to manage a rental property, and some knowledge of real estate, a vacation home investment can be a great source of additional income.
2. Build More Home Equity
The housing market and home values are continually fluctuating, so it’s not smart to invest in real estate in Pagosa Springs with the assumption that the property’s value will necessarily continue to increase and provide a huge payoff in the future. However, if your new vacation home is in a town that is doing well, where property values are generally increasing and crime rates are low, it’s much more likely that your vacation home investment will appreciate in value over time. As with any other type of home purchase, it’s imperative to research other factors that influence the value of housing and amenities in the area such as access to highways and restaurants, the general quality of the local schools, whether there is a viable job market, and more, to help solidify whether you’re making a smart investment.
3. Take Advantage of Tax Breaks
Whether you choose to use your vacation home as a second home or as a rental property, you may be eligible for significant tax deductions, which can include mortgage interest, insurance, maintenance, and other expenditures. To learn more about whether your vacation home might qualify for tax breaks and how to properly prepare your taxes when you own a second home, consult your tax professional.
4. Have a Second Home Base For Your Family
A second home provides the opportunity to build more memories with your children or grandchildren as you develop roots and friendships in another community. Your vacation home can become a peaceful haven where you can host friends and family, a comfortable place to get away from the daily grind, and a beautiful setting for creating new traditions. As your family grows, your vacation home will become a valued heirloom that can be enjoyed by future generations. If this appeals to you, talk with your Lake Forest real estate agents to learn more about the process of purchasing a vacation home.
5. Prepare For Retirement
Investing in a vacation home is a popular and effective way to prepare your finances and living situation for retirement. Rental income can help reduce the mortgage debt before the new property becomes your primary residence. Once you’re ready to sell your old home, you’ll be able to put the profit from the sale toward your vacation home. Your transition into retirement will be easier overall since you’ll already be familiar with the community, local amenities, and the home itself.
6. Make Vacations Simple & Relaxing
Whether your vacation home is on the beach, the lake, a rural area, or downtown, it’s likely that it will become your top vacation destination. Not only will you save a ton of money that you’d have to spend on accommodations elsewhere, but you’ll be completely in charge of how long you stay, who is invited, and what you get to do in your home. If you decide to keep some of your belongings in the vacation home, your trips will become even easier.
Are You Ready To Consider a Vacation Home?
Owning a second home isn’t for everyone. There’s plenty to consider before you browse Pagosa Springs real estate for sale or look for a real estate agent. But if you’re ready to begin the process and want to look for your new vacation home, get in touch with the Kaufman Team. We are committed to working on your behalf through every step of the home buying process. Our relationships with other professionals in the industry, our extensive experience, and our comprehensive understanding of Colorado real estate make us the best real estate agents to have on your side! To learn more about how we can help you make your vacation dreams come true, contact us today.