You know the feeling: You’ve just wrapped up a wonderful vacation and now you’re going through withdrawals as you head back home to the drudgeries of the everyday working world. While there may be no way to escape your job short of winning the lottery, more and more people are hanging onto a little piece of their vacation by investing in a second home.
Buying a vacation home in Arizona can be wise way to invest disposable income and diversify your assets, and a growing number of people are doing just that. Taking advantage of the many scenic resort areas within our reach, local residents are investing in second homes in Arizona.
In record numbers, Baby Boomers across the country are realizing their dreams while taking advantage of favorable tax laws and historically low mortgage rates to open the door to a second home. Because buying a second home is often different than primary home purchases, here are a few tips when getting ready to invest in a vacation property:
Determine the best locality for your vacation home. The most popular locations for second homes are near the ocean, lakes or mountains, in more rural settings than urban. They’re typically less than a day’s drive from you primary residence.
Research locations. A real estate professional is an invaluable resource in distant places. A Realtor can highlight areas of interest and offer information on other issues such as affordability, climate and population.
Identify your favorite pastimes. Vacation living equals more leisure time so think about your recreational interests. More and more people are buying vacation homes in Arizona near golf courses, beaches, ski slopes, boating facilities and biking, hiking or horseback riding trails.
Know the income tax laws. Vacation homes used primarily by the owner are considered personal residences, and individuals are allowed to deduct a certain amount of interest. Additionally, vacation homes in Arizona can be rented out for two weeks each year while still allowing owners to benefit from deductions in property taxes. Involve your tax professional in the financing part of the deal.
Timing. Almost every real estate market has a seasonal slump when buyers are scarce and purchase costs drop. Also use local brokers and mortgage lenders who know the market and can price competitively.
Visit the destination. By doing so, you get a feel for the travel time and the area’s culture and resources. Many people who buy a vacation home in Arizona ultimately use the property as their primary residence upon retirement, so it is extremely important to think about how the location fits into your long-term plans.
Real estate has historically been a good investment, and second homes are no exception. If you do your homework up-front, that new vacation home can be as beautiful to your accountant as it is to you.
If it has to do with real estate, please think of me first. I'm here to help, answer questions, or point you in the right direction. Just think of me as your Personal Realtor. And of course, I'm never too busy for you or your referrals. If you know someone else who has a real estate need or question, I promise to treat them in the same professional manner.