If you’re lucky enough to be in the market for a vacation home, Palm Springs is an ideal location. Many search for Palm Springs homes for sale or properties in other parts of the Coachella Valley for retirement or simply as a getaway, due to its gorgeous year round weather, access to recreational activities and laidback lifestyle.
One of the many benefits of purchasing Indian Wells real estate or any other property in a popular vacation destination for a second home is that the it will most likely retain its value and possibly yield nice long-term profits if buyers plan to resell. In an area such as Palm Springs, there is really only a certain amount of area to build upon, so this causes the demand for Palm Springs homes for sale to increase over time. While fluctuations in the real estate market are difficult to predict, homes in resort-like towns tend to maintain their value and stay in demand.
The tax advantages of owning second homes are very attractive as well. If you spend most of your time at your primary residence and only a certain amount of time in your vacation home, then you may be able to deduct the mortgage and property taxes associated with the second property.
Another benefit of owning Indian Wells real estate or property in one of the other bucolic desert towns is that it’s easy to rent out during the time you don’t live there. You may also be able to deduct some of the expenses associated with the rental, such as utilities, internet service, telephone service, maintenance and housekeeping. In areas that are sunny year round, such as Palm Springs, it’s easy to attract tenants and vacation rentals from the pool of snowbirds who want to get away from the cold weather. Often times, these rentals translate to a nice profit margin during the time you’re away.
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