Pros And Cons Of Owning A Second Home
Summer holiday season is here, and with that you might be considering purchasing a second or vacation home. “I know so many people who love spending their summer weekends at a lake or down the shore” says Jon deBruyn, a sales associate at ERA Justin Realty Co. “Buying a second home is a great way to facilitate this, as long as you are aware there are both benefits and drawbacks to second home ownership.”
Consider the following pros and cons before purchasing a second home.
Pro: You’ve got a designated vacation spot. “If you and your family love the beach, you might be able to spend more time there if you have a house in a town you love,” Jon says. “It’s so much easier to make a quick getaway if you don’t have to worry about packing things like sheets, towels, or even your toothbrush.”
Con: You have added responsibility. Owning twice the property might also mean twice the work. “I make sure my clients consider all the factors including how they will manage the property grounds and address necessary repairs and home maintenance. It’s important to consider the time and costs involved,” Jon states.
Pro: Rental income. If you decide to rent your home, you can earn rental income to help cover the expenses of owning a second home. If you want to vacation at your home, you can rent it out short-term. If you decide to have it only as an investment property, you can rent to individuals or families on annual leases.
Con: Risks of security and property damage. You always run a risk of property damage when you rent your home. Jon advises, “Even with a security deposit, you may need to dip into your rental income to cover the costs of certain repairs. Also, you need to consider the security of your unoccupied home during the off season.”
Pro: Potential tax breaks. Many people choose to leave their second homes unoccupied when they’re not using them. If this is the case, the interest and property taxes may be fully deductible from your gross income.
Con: Costs to travel to your home. “If your vacation home is out of state, make sure you consider the additional costs of gas or flights back and forth,” Jon adds.
If you’re interested in exploring second home ownership, call Jon or any of the other experienced agents at ERA Justin Real Estate at 201.939.7500.