Lake of the Ozarks is an amazing place to own a second home, plus there are many benefits to having an investment property. The big question that pops into most people's minds is, "Are these types of homes a good investment?" We're here to tell you the reasons an investment home at Lake of the Ozarks is a sound decision with a multitude of benefits.
When looking to secure your second home mortgage at Lake of the Ozarks, ensure you have an experienced and knowledgeable lender that can help navigate these complex transactions - Team Lasson is always here to help.
Vacation vs. Investment Home
One of the biggest factors to consider when purchasing a second home is, how will the property be used a majority of the time? This is where the vacation home vs. investment home status comes about. A vacation home is a home that is used primarily for your enjoyment, not having the goal of earning an income. An investment home is categorized as a home that is primarily used to earn an income by keeping it rented out.
This is not to say that you cannot rent a vacation home out a few months throughout the year, but there are limits on the number of days the property can be rented without it affecting the status of the home. Just as an investment property can also be used by you to vacation, but its primary function is to remain rented out to earn an income.
Owning a true investment property is a great way to earn extra income. If you have a mortgage on the home you may not be netting a whole lot of income directly right off the bat, depending on the mortgage loan terms. However, there are a couple of options; having your second home mortgage paid for by your renter or a consistent revenue stream where you are obtaining most of the rent payment back in your pocket (if the loan payment is lower than rent or the property is owned free and clear).
Another benefit of owning an investment property is that some of the expenses are tax-deductible - although, you will want to discuss the specifics of these items with your accountant. Some investment home expenses that can be written off include mortgage interest, mortgage insurance, depreciation, etc.
You also have the flexibility to change the status type of your home over the years, so if it began as an investment property but you decide that you'd like to use it as your primary home in retirement, you're able to change the classification through proper procedures (visit with your mortgage lender and accountant regarding this topic.)
Since this is not a primary home for you it may be difficult to keep routine maintenance and cleaning up to par while you engage in your typical week by yourself. It would require many extra trips to the property after hosting or if something needs maintenance. While it can certainly be done, hiring a property management company to facilitate anything from care and maintenance to listing and renting schedule.
The Lake Lifestyle
The appeal of the lake lifestyle at Lake of the Ozarks is hard to ignore, from the fun-filled, action-packed summers to the crisp, cozy, and scenic fall season, there's so much to experience year-round. Cruise the Lake on your boat, go fishing, explore parks and caves, or enjoy a night out on the town. There's fun for everyone at Lake of the Ozarks, no matter your definition, and as the vacation destination of the Midwest, is sure to attract plenty of attention to your investment property.
So, if you've considered owning a second home at Lake of the Ozarks, either as a vacation property or investment home, it's a great time to capitalize on the opportunity. Interest rates are near historical lows, which only further benefits you as a homeowner or investor. Team Lasson and our staff are mortgage experts at Lake of the Ozarks, so when you're ready to purchase your very own investment property at the Lake, let our team help.