Whether you are dreaming of paradise or profit, be realistic about what type of second home suits your lifestyle. Many people look forward to buying a second home that can be used for vacations, or as a primary residence during retirement. For those looking for a weekend getaway, staying within a day’s drive of your primary home could be a good move. If you want your second home to someday serve as your retirement spot, assess the home’s accessibility and check out health care services in the area. With all that said, keep in mind there is a big difference between a second home and an investment property. Which is why evaluating your needs and long-term goals is important. A second home is a residence that you intend to occupy in addition to your primary residence for part of the year. While an investment property is purchased to generate income, profit from appreciation, or to take advantage of certain tax benefits.
A second home is a great investment for your retirement…
The key is to choose a place that will work for you now and in the future…
Buying A Second Home
Reasons for buying a second home vary, from recreation and vacation enjoyment to investment and development to retirement planning. If you’ve long planned to retire somewhere warmer like the Palm Springs area. Buying a second home means that you can ease into this big transition. Sure, it’s a scary thought when you consider how current mortgage interest deductions have been impacted. But, the idea of owning a second home is still tempting! Just think you can buy a home near your favorite vacation spot, and when you are ready live there full-time. Plus, real estate is a physical, tangible thing to invest your money in. The fact that you can drive by it, walk around it, and make improvements to it with your own hands makes it attractive to anyone looking for a “safe” asset.
Mortgage Interest Deduction on Second Homes
One of the greatest benefits of owning a second home, is having a place to retreat and some day to retire. The good news is, you can still deduct interest on mortgage debt on your primary home and a second home. The new law keeps this part of the former tax law in place. Although it reduces the amount of eligible mortgage debt. There will always be that spreadsheet person who buys a home based on the tax advantages. And, for that person buying a second home may not be the answer. Unless that is, they are buying it as an investment property. But, in general, people buy second homes because they either want a place to retreat to, or a place for retirement. And, sometimes there are those who buy a second home for a place to retreat to. And, when it’s time to retire, they sell their primary home, and move into their second home to enjoy life!
A Place To Retire
Many people in the market for a second home are seeking a place to get away, relax, and enjoy the sun. They are looking towards beautiful California communities as potential options. While there are more than a handful of wonderful places to settle down in California, there is only one vacation spot that provides you the comfort of a small town, warm weather, and adventurous outdoor activities, Palm Springs, CA. Not only is it a perfect place to buy a second home, it’s also a great place to retire! There are a variety of benefits to owning a second home, but choosing a place in Palm Springs provides you with everything you need for your retirement.
Palm Springs Real Estate Market
One reason for to move to Palm Springs is the lower cost of housing. The lower cost of housing presents a huge opportunity for those living in hot market areas. If you are living in Seattle or San Francisco you are most likely sitting on a goldmine. As a result, selling your home could mean a lot of extra cash. And, for those who are preparing to retire. Buying today while the real estate is still affordable can help you achieve the retirement you have always dreamed of. You can pre-buy your retirement home, rent it out as a vacation home, and when you are ready move in full time. With over 100 golf courses, award-winning spas, and outdoor attractions the Palm Springs area has a life of its own. Another very attractive draw for many people is the fact that Palm Springs hosts some of the most anticipated events throughout the year. In fact, during spring, two of the world’s biggest music festivals come to town. The Coachella Valley Music and Arts Festival and the Stagecoach Country Music Festival.
Preparing For Retirement
For those who are preparing for retirement, the most important consideration is, where you will live and when you should buy. If you have plans to retire in 5 years, buying a home now could be very beneficial. For those who have the means to buy a second home before they retire, now is the time to do it! The key is to choose a place that will work for you now and in the future.