Want to know how to buy a second home or vacation home and make smart investments in residential real estate? Look at the articles, columns, radio shows, blog posts and videos for advice about buying a second home.
Mortgage companies often issue loans contingent upon how the home will be used -- will it be a primary residence or a second home? Do you need to notify your mortgage company if you decides to change the status of a second home? In some cases mortgage loan documents contain a time limit for notifying mortgage companies about home status changes.
When you want to start buying investment property you want to assemble an expert team. Look at your first home as investment property. And always have an exit strategy when buying investment property.
How can you avoid capital gains tax? If you have a second home that you have been renting, you might face a large capital gains tax, especially if you have been taking depreciation on the investment property. The IRS has very specific requirements for how to handle primary and secondary property. You may be able to use a 1031 exchange if you move back into the rental property for two years.
Many Americans are buying second homes in Mexico. Developers are setting up second home developments in Mexico like an American condominium association. For Americans thinking of buying a primary or second residence in Mexico, here are some things to keep in mind before you sign the papers.
Baby Boomers, those Americans born between 1946 and 1964, are hitting their prime second home-buying years. A recent study from the National Association of Realtors confirms that the most popular ages to buy second homes are from ages 55 to 65, followed by 45 to 55. Even if the second home market slows a bit, the numbers are still impressive: 78.2 million Baby Boomers who have an estimated $2 trillion in disposable income, according to the 2004 U.S. Census, and are set to inherit trillions more.
What is the best way to finance the construction of a second home - a home equity loan or refinancing the primary residence's mortgage? Take the equity out of your primary home in order to finance the second house. The refinanced mortgage on the primary residence will have a lower interest rate than a home equity loan.
In order to claim a home as a primary residence you have to live there for most of the year. You can't claim a second home, a vacation home or a retirement home a primary residence unless you plan to live there most of the time. If the IRS audits you they will look for certain records to prove a home is a primary residence.
A homeowner owns investment property that her parents live in without a formal lease agreement, and is ready to buy another home. The lender will look at the investment property as her sole responsibility without proof that her parents make payments that help her pay the mortgage. A lease agreement that show how much the parents are paying each month to live in the investment property would help show income to the lender and give her more to spend on her second home.