Purchasing a Second Home in Queens, Brooklyn or New York City – Part 2/4

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Don’t Count on Identical Tax Credits as With Your First Home

Talk to the IRS to determine what the tax implications of a second home are. For a lot of people the tax costs involved with owning a second home far outweigh the tax credits; particularly if you reside in the house for more days than you rent it out. Just as an example; you don’t have to declare any earnings if you rent your home out for less than 14 days: if you live in the home for less than 14 days in the year it’s considered a business, and you’re allowed to deduct up to $25,000 each year in losses.

purchasing a second home

Consult with George Russo and Associates prior to looking for a second home. We’ll be able to provide up-to-date accurate advice about loans, tax-write-offs, interest rates, and so on. Regardless of your credit history you should probably expect a more expensive mortgage, plus a higher interest rate, because purchasing a second home usually costs more to secure. George Russo and Associates is a real estate law firm, specializing in all matters relating to real estate, so we’re the right people to speak to. And remember that we offer obligation-free advice, so don’t hesitate to get in touch with us. See our website for any real estate legal advice in the New York City, Brooklyn and Queens areas.

Your First Appropriate Steps

Consider Renting in the Area

So many home buyers make the mistake of purchasing a home in a market which they know absolutely nothing about, and in an area which they care nothing about. Perhaps this second home is only going to be an investment and you’ll be renting it out, but the home should ultimately be a home where you’d be happy to live: even if only for a few weeks each year. Consider renting a property in the area for just a short while to ensure you would be happy living there.

Talk to the Locals

purchasing a second home

Ask the locals what they think about the area; how long they’ve lived there, the crime rate, and where they think the area is heading. It’s the locals who have the best perspective on how an area is doing. Use this data to determine whether buying a home in this area would be a good long-term investment. The proximity to the following amenities will increase the value of your new home –

  • Schools;
  • Different transportation options;
  • Good shopping facilities;
  • Hospitals, Fire Brigade, and Police.

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