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Have used Atlanta Property Inspections several times for my buyers. Their team is always very thorough and educational for the new home owners. Much information is shared about past/current codes, potential issues and how to have the issues repaired. I will continue to use Atlanta Property Inspectors for future inspections, and my clients have been very happy with their services as well!
25 2024
Buying a second home can be financially challenging but rewarding. Many believe buying a vacation and an investment home are the same thing. Sometimes, you will live in it; other times, you can just randomly rent it out to generate income. Unfortunately, this is not the case, as lenders have many rules when giving a loan to buy any of these properties. However, many homeowners aren’t aware of this difference. So, to help you understand the difference between these two investments and answer any questions you may have, we have prepared this guide for you. If you are looking to learn more, call Atlanta Property Inspections today.
A vacation home is a second home used on certain holidays or vacations, but it isn’t the main home. Buying a vacation home is a big financial decision. Most lenders are hesitant to give the necessary mortgage to the homeowners as there is a lack of occupancy. So, you may come across loans that carry higher interest rates than your first home you bought. However, vacation or second homes tend to have lower interest rates than investment property loans. These loans are given with the agreement that the property owner will use it as their second home instead of a rental pool. A common misconception is that they can’t rent their vacation homes occasionally because of these agreements. This isn’t true; you, as the homeowner, are allowed to rent out your vacation home on occasion. However, you aren’t allowed to rent it out for extended periods and use the income from the rent to take the loan. The guidelines and agreements must be carefully read to know what the homeowner is and isn’t allowed to do.
An investment property is very different compared to a vacation home. This home is not purchased for living in but rather to generate income. Buying an investment property has many advantages, like appreciation, income generation, and tax benefits. However, as mentioned above, financing the investment property will be more complicated than buying a vacation home. Property owners tend to put a larger down payment and prove to the lenders the potential of generating income from the property and whether they can afford it if something goes wrong. Rental incomes must be reported to the IRS. An investment property must be carefully examined to ensure that it will not cause any problems for the potential property owner in the future. They must look at the general condition of the house and what needs repair/replacement to ensure this goal. One way to ensure this is through getting a home inspection in Duluth, GA. This service allows the potential buyer or the seller to evaluate the house's condition. The experienced inspectors look at every aspect of the home and give a detailed report. Using this report, a buyer can see whether this house will need any repairs or replacements in the future or can use it as evidence to pay less for the house's asking price.
At Atlanta Property Inspections, we have over 25 years of industry experience. Our certified home inspectors are here to provide a thorough and detailed report of your home’s condition. Call us today to learn more about us and our services.
