Not only is North Carolina one of the most beautiful places to visit, but it is also one of the most affordable places to have a second home. From the growing downtown area to the expanding mountain views in neighboring towns, Ashevill eis a popular place for tourists to visit and vacationers to dwell.
If you’ve ever visited North Carolina, you may be thinking that it could be the perfect place for your home away from home — or perhaps you see a booming real estate opportunity for an investment property. No matter your unique intentions, there’s no time like the present to pursue your homebuying dream.
We’re covering everything you need to know about qualifying for a second home mortgage in North Carolina. But first, let’s talk about some of the benefits of buying a second home.
Reasons to Buy a Second Home
There are many benefits to owning a second home in North Carolina, but let’s get into some of the more practical reasons:
It’s a valuable asset: Whether it’s a vacation home or an investment property, a second home can get you a return on your investment. As time passes, it’s typical for a property to naturally accrue more value. If you make improvements to the property over time, the property’s value will increase even more and provide you with a decent profit should you choose to sell it down the line.
Your home could pay for itself: Owning a second home grants you the opportunity to rent the property out during the off-season. As long as you occupy the second home for the majority of the year, you may rent it out for a few weeks – and there are countless renters that are willing to pay top dollar for a relaxing North Carolina vacation. If you do choose to rent out your second home, it is notable to mention that with a rental term over 14 days, you will be obligated to report rental income to the IRS. Rental income can be used for maintenance, home improvements or even mortgage payments.
Your second home could be tax deductible: For homeowners with more than one property, there are a number of different tax breaks available. If you decide not to rent out your second home, interest on the mortgage is deductible within the same limits as the interest on your first home. According to Intuit, by foregoing renters you can write off 100% of interest paid on up to $1.1 million of debt secured on your first and second homes combined. We highly recommend that you speak to one of our experts prior to purchasing a second home.