Increasing the Investment Value of Your Log Home
Is a log home a good investment? Investors are frustrated with the performance of investment options in the new millennium. Stocks, bonds, mutual funds and other financial investments are not performing as many would have liked. Most investors, however, have found that the best performing asset in their portfolio is their home. As a result, real estate is viewed as a safe haven for investors with appreciation far outpacing other investments. With the security and growing values of residential real estate, a growing number of homeowners are now investing in their second home.
There are a wide variety of reasons why people build or buy second homes. City dwellers may want to escape to their home in the country for weekends and holidays. Northerners may want a home in the sun where they can golf year round. Southerners may want a home in the mountains close to a ski resort. There are also the Baby Boomers…a large number are eyeing retirement and are building second homes anticipating it will become their main residence.
Although the primary reason for purchasing a second home is lifestyle, investment consideration comes in a strong second place. There are several reasons why owning a second home makes good financial sense.
For example, the appreciation of vacation residential property is expected to continue to rise. Our country’s changing demographics are a good predictor that second home ownership will continue to be strong for the foreseeable future.
Baby Boomers reaching retirement age have more wealth than any previous generation; surveys show that ownership of a second home consistently ranks in the top two priorities for this group.
There are also tax benefits to second home ownership. Mortgage interest is deductible for first and second homes making home ownership one of the best leveraged investments. If you move into your second home and live there for at least two years, you can avoid any tax on the sale of your property.
Homes and real estate have always been safe investments. With a growing number of reasons why second home ownership makes sense, the demand for good locations and quality homes will rise. Some experts predict that second home ownership will become nearly as common in the future, as two cars are today for most households. Investment in a second home today is undoubtedly a wise decision for the future.