The Benefits of Owning a Vacation Home

Vacations make such a difference in recharging our minds, stirring our creativity and making memories with the ones we love. Though some people like to mix it up and go somewhere new every time, many of us have those tried and true destinations that we return to every time we can scrape together enough PTO to make it count. After enough repeat visits, you might be asking yourself if it would be a sound investment to buy a vacation home in your destination of choice. If you’re on the fence about whether it’s worth it, consider these many benefits!

Rental Income and Tax Breaks

If you know your second home will be vacant for half of the year or so, consider renting it out in the meantime. This rental income assistance can help reduce your overall costs of maintaining the home or paying off the mortgage. Be sure to work with your homeowner’s association or city to determine what, if any, limitations there are on renting your home while you’re away. In addition, depending on the duration of time each year you live in your home, you could qualify for tax breaks on both the second property and your first home. Be sure to discuss your opportunities for tax breaks with your financial advisor or tax professional to learn exactly what you will qualify for, and what impact it will have for your finances.

Opportunity to Build Additional Home Equity

Though the housing market is prone to fluctuation, chances are the destination where you buy your vacation home is a popular one with tourists. Homes in popular destinations, including Park City, or in emerging tourist markets can be expected to accumulate equity over time. This, paired with your main property, can add up to significant equity over the course of your home ownership. Be sure to analyze the historic property values in your preferred area, and if possible, talk in detail with realtors in that area to gauge the current market.

Reduce Vacation Costs

Getting tired of booking a hotel or renting a condo every time you want to visit your preferred home away from home? Having a vacation home can significantly lower the costs of going on vacation, which means you’ll probably be more likely to travel there on a regular basis. Consider your lodging paid for, but beyond that, with a full kitchen and all the comforts of home at your fingertips, you’ll be less likely to eat out at restaurants for every meal and might consider a comfortable night in with a bowl of popcorn and your favorite classic to a night at the movies. If you leave a vehicle at your second residence, you can also save on ride share and cab costs by driving your own vehicle to and from. You can even pack less knowing you have the added benefit of washing your clothes, instead of having to pack an outfit for every day of your stay.

Prep for Retirement

If you are near retirement and know that you intend to sell off your current home and spend the best years of your life in that vacation venue of your dreams, consider purchasing a second home prior to retirement in said dream destination. This will give you the opportunity to reduce your mortgage debt before it becomes your primary residence and, once you sell your current home, all of that profit can go toward paying off the mortgage of your second home.

Is now the time for you to buy a vacation home? We’d love to discuss the opportunity with you and tour one of our beautiful Shoreline homes to see if it’s time for you to make “vacation” permanent. Maybe a second home is out of reach, but you’re looking to make your everyday home feel more like a getaway. We can help with that, too! Park City is the perfect destination for vacationers and residents alike. Reach out to us, and let us know how we can help serve you in your homebuying process. For more information on Park City and our beautiful Shoreline community, visit https://shorelineparkcity.com/.