It doesn’t matter if you love snow-capped mountains or the desert, there are potential properties for second homes that can meet a wide range of budgets. Whether your dream is to find Palm Springs homes for sale, La Quinta real estate properties or something on the other end of the spectrum, such as a ski cabin or beach house, there are many benefits to owning a second residence.
When you choose a region that is popular among vacationers, those areas typically retain their value and can often times yield nice long-term profits if you plan to resell later on. For example, if you choose a desert property in the Coachella Valley, there is usually only a certain amount of area to build upon, so the chance of demand for Palm Springs homes for sale to increase over the years is pretty likely. While there is no guarantee that real estate prices won’t fluctuate over time, resort-like towns tend to maintain value overall.
There are also some tax advantages that behoove buyers of second homes. If you plan to leave the property unoccupied when you’re living in your primary residence, the interest on your mortgage and property taxes are deductible.
If you do decide to rent your second home during the time that you’re not there, you may be able to deduct operating expenses such as utilities, cable, maintenance, housekeeping and management costs. Many owners of La Quinta real estate rent their homes to snowbirds during the times they’re not personally enjoying the sunny weather, as those peak season rates can create a pretty nice profit margin. Often times, one week of rental income can equal an entire month’s mortgage.
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