Love vacationing in Green Lake, WI but still on the fence about buying a second home here? Here are five excellent reasons why you should take that leap.
1. You’ll have a wonderful home away from home
There’s a reason Green Lake has remained a well-loved resort town for decades. Beautiful serene views, great fishing, abundant water activities – these and more have kept guests coming back to the city year after year.
If you and your family love spending your vacations in Green Lake, perhaps it’s time to officially call it your second home. By having your own property on Green Lake, you’ll never have to worry about booking your lodging every time you visit. You’ll have a place to store your vacation gear, such as your fishing equipment or golf clubs, and won’t have to lug them with you when you travel. Your own getaway will also have the familiarity of home, making your stay even more pleasant and stress-free.
2. It can pay for itself
With Green Lake’s popularity as a vacation destination, you can make money out of your property if you rent it out when you’re not using it. You can use the income you make to pay off the home’s mortgage, essentially making it pay for itself, or you simply get extra cash in your pocket. There are two basic ways to go about this – you rent out the property for no more than two weeks each year, or for more than that. Each option has different tax implications, so it’s best to consult your CPA first.
3. You enjoy tax benefits
You get the same tax benefits for a vacation home as for your primary home. These include tax deductions for your property tax, insurance premium, mortgage interest, and part of your capital gains.
If you rent out the property for more than two weeks in a year, however, it will be treated as a business and taxed accordingly. But you still get significant tax deductions, including depreciation costs, repair and maintenance expenses, and travel expenses to and from the property.
4. You build your asset’s value over the long term
When you buy real estate, whether for your personal use or as an investment, you can expect its value to rise over the years. This is historically true for almost all types of real estate in the US, particularly if it includes land. If you decide to sell the property in the future, you’ll likely enjoy good profit, especially if you’ve made improvements on the property and kept it well-maintained.
Moreover, vacation homes tend to keep and even improve their value over time. Since they’re located in highly desirable locations, such as Green Lake, there will always be a healthy demand for them.
5. It makes a good investment for your retirement
When it comes time to retire, you can move to your vacation home permanently and make it your primary residence. When you sell your present home, you’ll enjoy most of the profit, especially when you’ve already paid up the mortgage for both your first and second homes. By that time, property values in the area you bought into may likely have increased, giving you substantial savings and profit potential.