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Second home vs. investment property: Different mortgage requirements and rules

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Earning some money from your property doesn't automatically make it an investment.
The article from KUTV discusses the differences between purchasing a second home versus an investment property, focusing on the financial and tax implications of each. A second home is typically used for personal enjoyment, like a vacation home, and can offer tax deductions on mortgage interest and property taxes similar to a primary residence, but with different limits. In contrast, an investment property is bought primarily to generate rental income or capital appreciation, and it comes with different tax benefits, such as the ability to deduct expenses like depreciation, repairs, and travel costs related to managing the property. The article also highlights that investment properties often require a higher down payment and may have higher interest rates compared to second homes. Understanding these distinctions is crucial for potential buyers to make informed decisions based on their financial goals and usage intentions.

Read the Full KUTV Article at:
[ https://kutv.com/money/mortgages/second-home-vs-investment-property ]