Buying a Second Home in Virginia & Beyond

Buying a Second Home in Virginia for Vacation or Investment: Beach, Mountain, Lake

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Home for Sale on Bull Run Mountain

We live in the perfect state to own a second home for weekend getaways and vacations. Within the borders of Virginia there are miles of pristine ocean shoreline, crystal clear lakes, quaint and historic towns and villages and magnificent mountain landscapes.

Whether you’re into boating, hiking, hunting and fishing, creating art, skiing or just escaping a hectic work week, there may be a way to purchase your dream getaway.

RELATED: See all Homes for Sale on Bull Run Mountain with Magnificent Views

If you can manage it, a second home can have many advantages. Right now, interest rates are still historically low and while the real estate market is thriving in Northern Virginia, there are markets in the state, as well as bordering states, that are very favorable for buyers. A second home can be used for personal enjoyment, investment property or as a future retirement home.

The first thing to consider is whether your second home would be used as a second home/residence or investment/rental property.

Tax Relief. If a second home is for your enjoyment only, you can deduct the mortgage interest and real estate taxes. If you rent your home for LESS than 14 days of the year, you don’t have to report that income and still get the deductions. So, if you rent your home for just two prime weeks, that income is tax-free cash.

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Sandbridge Beach, VA

Rental Property. A second home can provide some vacation time but if you limit YOUR use of the home personally for less than 14 days, it can be considered a business or rental property. With that status, you do have to report all rental income, however deductions like property management, utilities, maintenance and miscellaneous expenses can all be applied.

There is, however, a way to spend more time at your second home if it is considered rental property. If you spend time “maintaining” the property, those fix-up days don’t count as personal use. Many vacation homeowners use this time to enjoy their property while making minor updates and attending to maintenance.

Buying a second home as an investment is a also good option for a future retirement residence. A good property can pay for itself and appreciate over time. Consult with a tax expert to fully understand these benefits, as well as balancing a home for both personal use and rental use.

Websites like Homeaway.com and airbnb.com make renting your home easier than ever. Go to one of these websites and see what kind of rent a vacation home in the area you’re thinking about can yield.

RELATED: Airbnb: An Emerging Sharing Economy

How do I get started?

If you are thinking about a second home, call Bryan Garcia at 703-517-2574. He can point you in the right direction. He has an EXTENSIVE NETWORK of Realtors throughout Virginia and many contacts out of state. He can recommend a suitable lender, will pre-qualify a reputable Realtor and offer support for your transaction.

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(This article is not intended as tax advice by Bryan Garcia. Consult your accountant or tax advisor to verify the benefits mentioned in this article.)

Are you interested in moving to Haymarket or Gainesville, VA. It’s a great place to live! Call Bryan Garcia at 703-517-2574 and he can show you around. See why Bryan is a TOP REALTOR in the Haymarket area.

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See this article in the Spring 2016 of Haymarket Homeowner: