Owning a luxury vacation home is more than just having a second home in your name. Aside from having the best of the best when it comes to living spaces, you also have a worthy investment in your hands. Here’s why:
Luxury vacation homes have a huge return on investment
Because of their desirable location, unique features, and must-have amenities, luxury vacation homes have a significantly higher home value and higher return on investment. As long as you buy at the right time and in a strong market, your future luxury vacation rental could lead to huge returns if you decide to rent or sell your vacation home in the future.
Luxury vacation homes can provide you with extra income
Another reason why luxury vacation homes are a good investment is that they can provide you with an additional source of income. On the days that you don’t use or need your second home, you can rent it out, earning you passive income in the process. Since luxury vacation homes also have a higher value based on their location and features, the rent you charge will be slightly higher compared to that for a standard home.
According to the National Association of Realtors, the number of vacation property owners who are looking to rent out their homes increased by 25%. This vacation trend shows that the vacation rental industry is becoming more popular and is growing at a fast pace.
Luxury vacation homes have certain tax deductions
If you do decide to rent out your luxury vacation home, you become entitled to certain tax deductions. The Internal Revenue Service (IRS) states that homeowners who rent out their home for 14 days or less can keep the rental income – no matter the amount — without having to pay tax.
However, if rental of your vacation home spans longer than 14 days, you must report all the rental income you earned. While you now get taxed on your rental income, you can still deduct any rental expenses that you incurred.
Luxury vacation homes can be used for your relaxation and recreation
Owning a high-end vacation home also gives you the luxury of using it whenever you want. Your luxury vacation home can be a wonderful location for long weekends, holidays or special celebrations. It can also provide you and your family with a welcome escape from the hustle and bustle of everyday life.
Luxury vacation homes are a good retirement option
Thinking of where you should retire? How about spending your retirement in your luxury vacation home? Since you will be more than familiar with the home, the neighborhood, and the lifestyle, your luxury vacation home would make an excellent option when it comes to retirement. Retiring in your luxury vacation home also reduces your retirement expenses because it gives you a good amount of time to pay off the house and improve on it.
Looking for a luxury vacation home in or around Lake Conroe? You’ll find many options that are worth the investment. Feel free to contact Katherine Maher at 936-525-0095 or send an email to Katherine(at)lakeconroe(dotted)com to learn more about the available homes in the area.