For most people, homeownership is one of the most common goals. And it often doesn’t end with owning just one home. Even individuals who love their primary home find themselves thinking of purchasing a second home. This can be an appealing prospect and a valuable investment in your future. At the same time, it can provide a retreat from the busyness of everyday life. A secondary property can also provide an additional income. But there are important things to consider if you’re thinking of buying a second home in Des Plaines. Before you buy a home and hire Des Plaines movers, here’s what to take into account.
What makes a second home?
You can use a secondary property in more than one way.
- As a vacation home. If you want your own spot to call home when you’re on vacation, a vacation property might be what you’re looking for. In that case, choose a location you love visiting and exploring.
- As a secondary residence. For example, if your job requires a good deal of travel or time spent in Des Plaines, you might consider buying a property there to use as a second home. Packing services Chicago moving companies offer can come in handy when moving into the residence.
- As an investment property. Buying a second home as an investment property implies either turning it into a rental property or flipping and reselling the home. Bear in mind that investment properties have different requirements and mortgage rates than second homes. Make sure to discuss in detail with your mortgage professional to ensure your mortgage matches your plans.
However you decide to use your secondary property, some of the best moving companies Chicago residents recommend can help you transport your belongings there.
Taxes and second homes
When it comes to tax, different definitions of second homes also apply. Regarding primary residence capital gains tax exclusion, a second home is one you didn’t own for at least two of the last five years. Another condition is that you haven’t lived in it as your main home in two of the last five years. For tax purposes, a second home is a home you live in for at least 14 days each year, or at least 10% of the days the home is rented, whichever is more. Keep an eye out for any tax breaks you may qualify for.
Buying a second home in Des Plaines
The first thing you should do after you decide you want to purchase a second home is research the housing market. Des Plaines housing market typically cools off during the fall and winter seasons. However, experts predict that it will stay hot the rest of the year. The median sale price for single-family homes in Des Plaines, the ZIP code 60018 area, was $320,000 from June through August. That is 12 percent higher than during the same period last year. 50 percent of the homes sold during that period were sold above the price list. The housing market is similar to other ZIP codes in the area. If buying a second home in Des Plaines is on your agenda, you should move quickly. You may even be able to do some fun things in Des Plaines this winter.