Sarasota Vacation Rental Home Benefits, Advantages
You're seriously considering purchasing a Sarasota vacation rental home; probably to rent out and to enjoy as a getaway. Whether you live in the Sunshine State, another state, or, just want to generate a passive income, a vacation rental home can be quite ideal. It's the perfect solution to several travel problems. What's more, it can provide extra income for your family, enjoyed by vacationing family members and friends, and be passed down. If you are still unsure about moving forward, you should know about the various vacation rental home benefits and advantages.
Sarasota Vacation Rental Home Tax Advantages
In real estate, timing can serve as a great advantage. For instance, right now, home prices are creeping upward, but, sales are slower, which means less buyer competition. This very phenomenon can work for you, and, when you add to the mix near historical low interest rates and still affordable prices, it's a great time to be in the market to buy. Don't be afraid to shop around and learn a little about properties on your list.
Lots of second-home buyers rent their property part of the year to get others to help pay the bills. Very different tax rules apply depending on the breakdown between personal and rental use. --Kiplinger.com
In addition, you should be willing to negotiate and have a realistic budget. If you tender the right purchase offer, you can own a piece of paradise in Sarasota. If you plan to rent the property out when you're not using it, you can take these tax deduction advantages:
- Write-off expenses. In order to rent your vacation property, you'll incur expenses, which you can write-off. These include: advertising, utilities, maintenance, commissions, insurance premiums, taxes, legal fees, association fees, mortgage interest and more. In addition, you can deduct business-related travel expenses.
- Depreciation. Even though your property will gain value, you can still depreciate residential home cost, usually over 27.5 years.
Of course, be sure to consult with an experienced tax professional.
Sarasota Vacation Rental Home Benefits
Owning a Sarasota vacation rental home isn't just about getting tax write-offs, though these are certainly great advantages. There are other benefits which come from owning such a residence, like the following:
- The property will appreciate. The single largest financial advantage of homeownership is that your mortgage payment and interest rates are locked-in for the life of the loan. During that time, your property will appreciate. In the future, you might even find it advantageous to refinance, depending on the market.
- You gain extra financial leverage. Your vacation rental home is a real property investment and it can provide you with extra financial leverage. For instance, if you have a large down payment and amortize the mortgage faster than the term, in just a few years, you'll have substantial equity; and, you can use this as leverage.
- It can generate a steady income stream. If you buy within your budget and rent out the property on a regular basis, you can enjoy a steady income stream. Add to it the various deductions and other benefits, and it becomes a truly worthwhile investment for you and your family.
- You have a dedicated place to stay on vacation. Let's face it, while it is certainly nice to get away, we're all familiar with the experience of how wonderful it is to return home. When you purchase a vacation rental, you are truly gaining a home away from home. There will be far less hassle and frustration that comes with staying at a hotel. You can also give family and friends the gift of staying in a tropical paradise in a beautiful home.
What's more, you can transition into retirement in the home. Many vacation rental home owners only stay in their properties part-time, while renting their residences for part or most of the year. When the time is right, you can opt to relocate or move into the home, continue to rent it full or part-time, or, sell it.