For many New Orleans homeowners,
it sounds more like a pipe dream than a carefully thought-out investment:
getting your own vacation home—a refuge where you can put your feet up, relax,
and tune out the stress of daily life.
True, if you look only at the cost of a second home, it sounds
like a pretty costly indulgence. But in many cases, stepping back to take in
the bigger financial picture, it could wind up being one of the shrewdest
financial decisions you can make!
Consider:
1.
Vacation savings.
Using your New Orleans vacation home more than once or twice a year can easily
result in annual six-figure savings. The resort hotels and eateries’ loss is
your gain when you and grateful relatives and friends are able to enjoy your vacation
getaway.
2.
Extra
income. One of the motivating factors for many local vacation
home owners is the possibility to create a new source of some extra income. When
you consider renting out your vacation home when you’re not using it, your
occasional renters can cover some of the property’s mortgage and operating expenses.
Also, renting your vacation house increases the proportion of time that it’s in
use, reducing the kinds of maintenance issues that can develop when minor
problems go undetected—especially during winter months.
3.
Tax advantages.
A New Orleans vacation home can become significantly more attractive when you
take advantage of the considerable tax advantages. Consult your licensed financial
advisor to confirm the details: in general, if you rent your second home for 14
days or less, it qualifies for the mortgage interest tax write-offs you get for
your primary residence. And if you rent it out for more than 14 days in a year,
a proportional amount of upkeep expenses can be deductible, as well.
4.
Retirement
prep. If your New Orleans vacation
home winds up becoming your home base for retirement, having acquired it early
on as a vacation home now can be a terrifically wise move in the long run. By
retirement, you will have built the kind of equity that reduces your mortgage
debt, freeing up your retirement income stream for more pleasurable
expenditures, like gambling, sumo wrestling, or even taking one of Richard
Branson’s Virgin Galactic rocket rides to an asteroid.
Interested
in investigating further? Call me today!
Terez Harris NOLA Real Estate Group
(504)297-2619
Keller Williams Realty New Orleans 8601 Leake Ave. New Orleans, LA 70118 504-862-0100
Each office independently owned and operated. All brokers licensed in the state of Louisiana.
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