Second Home vs Investment Property – What is Your Best Option?

You might be planning to classify your next purchase as an investment property, but it might qualify as a second home.

[{"selector":"#anim-021af7b7-a7fe-4851-99dd-836ab16bf3f5","keyframes":{"opacity":[0,1]},"delay":0,"duration":1500,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-4cc8fb13-9876-4c60-b397-0d2ddb03a7c7","keyframes":{"transform":["translate3d(-115.97444%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":1500,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Learn more

A second home is a property apart from your primary residence. Also, you live in for a portion of each year.

[{"selector":"#anim-a4a8c5b7-4ce5-4d69-82a0-65b63b2221b2","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-989decd5-dee9-4425-80fe-f76dc8e780cc","keyframes":{"transform":["translate3d(-115.04703%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-8fc11c06-861d-4123-9472-ec22537f2c12","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-1c744c8e-9743-4760-9228-8c9ced1a7467","keyframes":{"transform":["translate3d(120.68966%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Learn more

What is an Investment Property?

[{"selector":"#anim-5f6431e0-dd59-423c-92c3-217ef09e0ef6","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-331b224a-29e3-40d6-9308-15cc79c9faef","keyframes":{"transform":["translate3d(-117.32027%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-c8108049-1aea-4280-b9d1-f16d595358e7","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-2970ffd7-f71b-47b4-b26e-a80263e4ee71","keyframes":{"transform":["translate3d(114.51104%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Learn more

When comparing a second home to an investment property, the primary advantages involve the mortgage and property taxes.

[{"selector":"#anim-c7e26a35-ba5d-476a-9e66-44a4f7ea019e","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-b810372f-cf14-4449-ac86-177ac768a791","keyframes":{"transform":["translate3d(-118.95425%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-36fb90a0-fe46-43ba-a32a-f3e06d377e8f","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-3ae22525-ff03-4fe2-b46a-62db0d1cbbaf","keyframes":{"transform":["translate3d(119.72789%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Learn more

The loan you can get for a second home will typically be more favorable than what is available for investment properties.

[{"selector":"#anim-53495813-f724-483c-a03f-6901c27debd7","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-03ac4e7a-d0e1-4fff-a476-2731003702d8","keyframes":{"transform":["translate3d(-128.78788%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-6b60decd-0444-4553-a7b6-79ec9fd6f42e","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-7f84c587-5f9b-4c8a-9283-153b4826c776","keyframes":{"transform":["translate3d(123.65590%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Learn more

The primary tax difference between a second home and an investment property is that you can deduct the mortgage interest from your second home on your taxes.

[{"selector":"#anim-fe0153fa-2517-498f-882a-2bdbf3cdfdbc","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-d8a78ab8-c59a-4d83-8a13-4c8ff121af63","keyframes":{"transform":["translate3d(124.01433%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-b53df2f4-b163-47c0-90cd-78dd8579b50a","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-cda4e178-d6af-4f65-b4af-169ded035701","keyframes":{"transform":["translate3d(-113.62229%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Learn more

Swipe up to learn more.

[{"selector":"#anim-88f35af4-fe36-4d40-a87d-b9884b34270c","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-e3baca3c-dc10-41b1-9af0-ffc49a7a55d9","keyframes":{"transform":["translate3d(0px, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Learn more

Second Home vs Investment Property – What is Your Best Option?

You might be planning to classify your next purchase as an investment property, but it might qualify as a second home.

A second home is a property apart from your primary residence. Also, you live in for a portion of each year.

What is a Second Home?

What is an Investment Property?

An investment property is a property you purchase with no intention of personally using.

When comparing a second home to an investment property, the primary advantages involve the mortgage and property taxes.

Benefits of Having a Second Home

The loan you can get for a second home will typically be more favorable than what is available for investment properties.

Can You Get a Better Loan on a Second Home?

The primary tax difference between a second home and an investment property is that you can deduct the mortgage interest from your second home on your taxes.

How Do Taxes Work on a Second Home?

Swipe up to learn more.