What is the second home?
Second houses are property shares in which the owner occupies the assets for the period of limited time every year. For the second home, it is not unusual to serve as a weekend escape or as a place to spend time on holiday during the summer months. There are a number of benefits associated with the ownership of the second house, including tax benefits and the possibility to create an investment for later years. The investor organizes financing, often a mortgage with a local credit institution. In some cases, the financing of the second house can be carried out by cooperation with the mortgage company to create a package where the property owner places a mortgage for the primary residence and the second residence with the same creditor. In exchange, the creditor can offer the house owner a more competitive interest rate on both real estate loans.
It is important to realize that while the other house is often considered a holiday house, it is usually not used as a rental property. The aim of renting is to place tenants in the house more or less permanently; The owner does notNo real plans to live at home. However, this does not mean that the owner cannot generate certain revenues by leaving the second house for a short time, for example for a weekend or week here and there all year round. Depending on the applicable tax laws, this type of activity will not affect the status of the property as the second home. However, it is good to check with a tax expert and see if this is the case in your country.
Many people decide to keep their second home as a tax deduction. In many countries, homeowners receive significant tax reliefs related to the amount of mortgage made annually on the land. Depending on the overall structure of the owner, these deductions may be enough to prevent the owner to be classified into a higher tax group and consequently because of other taxes.
together with tax benefits, the second home makes a good investment in the future. Assuming that the value of investment assets over time appreciates, the owner is likely to sell the second house later in life for a significant profit.The money made from the investment can help to retire the retirement years very comfortably and alleviate any worries about getting a limited income.
Although there are a number of financial benefits associated with the ownership of the second house, there are other advantages. The second residence in the ground, lake or beach can be an ideal place to escape, when the pressures of everyday life become stunning. The opportunity to get away from everyday stress and recharging in a friendly and safe environment can make it easier to return to the daily grindupo weekend or several days and be able to approach the necessary tasks with a positive approach.