Hey, I have been asked lately if I feel that owning a second home right now is a good idea. I really do believe it's a great way of saving for the future. With interest rates so low having money in the bank is not going to get you much in return. If you're able to find 15% down payment (some cases less) a bank will give you a mortgage for a rental property. Let someone else pay down the mortgage plus providing a home for someone. You can claim your mortgage interest, taxes, renovations etc for your second property. Once it's paid off all rent becomes income for you. With capital gains still in affect you will need to pay this when you sell it but I believe that sooner rather than later the govenment with bring back the capital gains exemption program to encourage people to buy second properties.
Owning a second home
- April 7, 2009
CENTURY 21 United Realty Inc., Brokerage*