With a population of 21.31 million people, Florida has become a popular choice for high-rise…
When you’re looking to get away from the hustle and bustle of everyday life and you’re longing to relax, there’s nothing better than taking a trip to a vacation home. Whether it’s a waterfront property or a cabin in the woods, vacation homes are all about tranquility. If you’re thinking about buying a vacation home, here are several reasons why they make good investments:
One of the biggest benefits of owning a vacation home is that you can make money. If you are a frequent user of Airbnb, it’s a good bet that some of the homes you’ve stayed in were vacation homes. Depending on where your vacation home is, it could command several hundred dollars a month as a rental. If you’ve got waterfront property in Miami, for example, you could rent it out year-round.
You Can Write Some Of It Off
You may not know, but if you rent out a vacation home for more than 14 days, it’s considered a business for tax purposes. You’ll still have to pay taxes on the income you bring in, but it also means you write off expenses needed to maintain and repair your home. In 2016, the median price of a vacation home was $200,000, up 4.2% from 2015, so if you paid a lot for your vacation home, this is a good way to pay it off.
Don’t be fooled. If you’ve got a vacation home, don’t forget to enjoy it from time to time. Use it for a girls or guys weekend or a family reunion. It’s also a great spot to take the kids when summer vacation rolls around. If you buy it in an area you visit all the time, it’s going to make it that much more special.
A Nest Egg
If you’ve got a vacation home on waterfront property, take time to enjoy it, but keep in mind it can help build long-term wealth. Eventually, you can sell it and use the money to cover other costs. You win either way.
There are plenty of advantages to owning a vacation home, whether you plan to spend time there frequently or if you plan to rent it out. Either way, it’s a great investment and you’ll be happy in the long run with the time and money put into your new getaway.