What is the difference between an investment property and a second home? It is important to learn the difference because it can affect the type of loan you get. Kay Carlson Realtor discusses the difference between an investment property and a second home in Prescott.
People sometimes use the terms “investment property” and “second home” interchangeably to describe real property that is not their primary residence. However, there are some very distinct differences between these types of properties. Here are some differences:
- An investment property is a property that is not your primary residence and is purchased or used in order to generate income, profit from appreciation, or to take advantage of certain tax benefits.
- A second home is a residence that you intend to occupy in addition to a primary residence for part of the year. Usually, a second home is used as a vacation home. However, it could also be a property that you visit on a regular basis, such as a condo in a city where you frequently conduct business.
If you’re considering taking out a loan to purchase either an investment property or second home, it is essential to understand the differences between these terms. Then you will be able to make your intentions clear to the lender when you start the start the process of applying for the mortgage. This will ensure that you obtain the correct type of loan for the type of property you intend to purchase.
Kay Carlson Realtor wants you to be aware of the differences between an investment property and a second home. Kay Carlson can help you in your search for an investment property or second home in Prescott. Kay Carlson is an experienced Realtor® dedicated to Prescott, Prescott Valley, and Chino Valley, Arizona. She provides smooth real estate transactions with masterful attention to detail and excellent customer service. Call Kay Carlson today at 928-710-4193.