Some individuals are fortunate enough to be able to afford a second home. Those who choose to do so have all sorts of reasons, but here are a few additional benefits you may not have considered:
Getaway. Your second residence can be an escape, providing a vacation away from the hustle and bustle of everyday life for you and your family. Southstar Communities has master-planned communities of every kind: waterfront communities, communities situated in the Texas Hill Country, and communities in the mountains. Each unique experience we offer features homesites that provide exceptional lifestyle benefits and advantages.
Rent. If managed efficiently, a second home in an exclusive area or in some other desirable location can be a lucrative investment. Your spare house could not only pay for itself and its own expenses over time, it can even serve as a source of additional supplemental income. However, taking on tenants is not a decision to be entered into lightly. Renting out property requires additional time on your part to address your renters’ needs and concerns. It’s a certain temperament and personality that’s best suited to the landlord lifestyle. Before you take that plunge, be sure you’ve carefully weighed all of the pros and cons and know it’s right for you.
Tax Benefits. Depending on several factors—how often you use your second home, whether you rent it out, how long it stays empty between occupants, etc.—it can help you realize certain tax advantages and benefits. For example, if you use your second home for more than fourteen days, even if it’s just to vacation there, then you can claim it as a personal residence. This means that you can receive certain deductions, such as the amount of interest you pay on its mortgage. It’s always a good idea to consult with a tax advisor or a financial planner when you’re considering purchasing a second home, to be certain that you completely understand your obligations and what you’re committing yourself to, as well as whether the advantages will be worth it for your needs.