Many people often ask themselves, are there benefits of owning a second home? The easy answer to most, is “yes!” Whether you are purchasing your second home as a personal vacation place or as a rental property, a second home can be a wonderful part of your total income portfolio. Make sure you discuss your tax implication with your accountant before you buy, so you can make the most of your home investment.

Your decision to invest in a second home has the ability to pay-off in several ways. As beach-guesthouse1.jpgmost homeowners are aware, one of the financial benefits can be the tax-deductible interest. There also can be nice appreciation in the value of your vacation home.

Another option is to use your second home as a source of rental income. Renting your home out for part of the year can certainly   help with the costs of owning a second home. If you want to use your second home strictly as rental property, there my be added benefits and even more tax benefits to you as an owner. The idea of a long-term renter in your second home could be one way to have the second home pay for itself. This could become an important part of your total investment portfolio upon retirement.

There is great merit in the idea of getting the benefit of a tax break now and possibly end up with a home without a mortgage when you retire! Purchase a second home in a location where you would like to live when you retire, whether at the ocean or in the mountains!

Again, you will need to discuss these possible benefits with your tax adviser. If you need the name of a tax professional, or more information about second homes, you should contact your Jenny Pruitt Associate for more information.

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Jim Alexander

Senior Vice President, Managing Broker

Sandy Springs office