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?

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