Owning a second home or vacation property comes with many benefits. What you might not realize is that buying a second home is a financially sound idea. Along with enjoying the luxuries of a coastal home you can also enjoy some financial benefits as well. Vacation properties can pay for themselves thanks to rental income, and are a great way to prepare for the retired life.
Owning a luxurious home in a desired location means that you can rent your property out while you aren’t living there. You can rent the property out full time or to multiple short term renters. Collecting income from rent is a great way to support the ongoing costs of owning the property. You can rent your home out through a service such as Airbnb or utilize a vacation management company.
If you rent out your second home for 14 days or less over the course of a year, that rental income is tax-free no matter how much you charge. If you have renters staying for longer than two weeks in a year, you can deduct interest and rental-related costs as a business expense.
Planning for Retirement
A second home is an investment in your future. For those who are financially comfortable, a second home can be a great long-term investment strategy. Properties are not tied to the stock market and appreciate over time.
Vacation properties are more likely to retain their value and gain appreciation due to their popular locations. If you plan on living full time in your second home when you retire, making the purchase now may be a sound strategy. By the time you are ready to retire your home may already be paid off.
Enjoy the Vue in Newport Beach
If your ideal second home is located just off the water at Newport Beach, a brand new villa-style home at VUE might be the right choice for you. Learn more about our residences or give us a call today at 949.596.4396.