Most people know that the #1 reason to own a second home is for the sheer enjoyment it brings to you and your family!!! While the financial implications of a second home carry considerable weight, we hope that your second home is first a place for fun, relaxation, and quality family time.
With the sheer drop in Arizona home prices, this is a perfect time to purchase a home or condo at a very low, affordable price. What's more, interest rates have dropped considerably! Don't wait, within 12-18 months, home prices will rise again in Arizona. Just last year, 2007, nearly 170k people moved to Arizona. With the large number retiring or moving to Arizona, there is no doubt that an Arizona home will yield dividends in sheer enjoyment and possible revenue!
1. Enjoyment
A second home offers a getaway from the stresses of everyday life, giving you an opportunity to recharge, relax, and gain perspective. Getaways provide us quality time to spend with ourselves, family, and friends—a time to give priority to all the things that take a back seat in our lives, whether it is finally reading that stack of books by your bedside or taking that golf lesson you never seem to get around to. It’s proven that families who own vacation homes take more family vacations.
2. Investment
Vacation homes offer an array of investment opportunities.
Diversification: The stability of real estate value makes it a good choice to diversify the non-aggressive portion of a portfolio.
Appreciation: Buying a vacation home today is like buying California property in the ’70s—vacation home properties are low relative to where they are expected to be once the Baby Boom generation begins to retire in force. This tangible asset should appreciate over time while providing life-long fun for you and your family.
Rental Income: Renting your second home is typically a great cash source for extra monies, which can help pay down your mortgage.
Taxes and Mortgages: A second home may also provide federal tax deductions, tax-sheltered income, or even a reduction in property taxes. Owning a second home allows another mortgage interest write off. With home equity loans, reverse annuity mortgages, and other financing opportunities, securing a mortgage on a second home is easier and less costly than ever before.
3. Retirement
It’s a good idea to get a head start on retirement living. Your favorite location might be a lot more expensive in 10-15 years when 73 million Baby Boomers begin retiring. Find your second home before prices become too inflated and you’re priced out of the market. The 1997 tax law changes allow couples to avoid paying capital gains taxes on profits of up to $500,000 on the sale of a primary residence. Equity in your primary residence can help purchase a retirement home.
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If you or anyone you know would like to find out more about homes in Central Arizona, please call Todd Hillman, DPR REALTY, INC at 623-979-3002 today! Start living your AZ lifestyle, not just dreaming it!!!
