Monday, July 4, 2016

Cottages can be more work than relaxation

PITTSBURGH - A retired judge Robert Colville and his wife Janet, middle have become 1980 Nesters and a house Reduced, but also decided to create a second home outside the city to buy, which was large enough to hold large family reunions.

But now that their children new traditions create with their own families, use the Colville four bedrooms, three bathrooms House less frequent and more difficult to justify the cost of having.

"Owning two homes a financial problem is, also," said Robert Colville, 81. "My wife and I are back to us to go on this, especially as we age. It has a lot of debate among us. We do not use much in winter these days I. am not skiing or hiking. we prefer to south to go for our vacation. "

Buy For those who get from the sunny beaches of Florida or ski on the slopes of the mountains of Colorado, a second home away in a popular holiday destination can be a way to enjoy the best of both worlds.

But as time goes by, the factors that led to the exit of the second purchase of a home can change. Often there are costs to pay associated with travel and from the second house, and after taking into account the burden of the mortgage and other bills that go along with maintaining two households, at least one financial consultant generally recommend customers to rent a place in vacation instead of buying.

Pittsburgh residents Walter and Nancy Stained second about 15 years accidentally became owners forth from there, as Nancy Stained inherited in Stone Harbor, New Jersey while they enjoyed a house on the shore along the house for some time, quickly found house maintenance is required, eight to 10 hours every time they visited to work.

"One summer he rented the place and to our regret, the tenants are not so careful and friendly property that we" Walter Stained said 68. If the tenants have left, he had to repair shower doors and back painting and repairing screen doors , the holes were poked.

After two or three years, Bunts put New Jersey House for sale.

"Despite what people say about hiring a rental unit cleaning always even had to clean when we use them, not to mention the work in the garden," Walter said stained. "I have never, ever own a second home."

Financial advisor Pittsburgh Robert Fragasso, President and CEO of Fragasso Financial Advisors said that often when customers go on vacation to the beach or in the mountains, have a great time, go home and ask if they can afford a house here to buy.

"I tell you, I can tell if they can afford it, but I ask you to tell me how you will use in the future. It may or may not be, what to do," Fragasso said. "The first number must be the customer answer yes it is," Will we use? "No purchase is good or bad in itself. The question to answer is, how it fits into your life.

"Kids in high school and may have sports and other extracurricular activities, and are not really bring that into motion," he said. "They are the content goes to the same place all the time or is completely different places every time you go?"

Even those who decide to buy a second home, said Fragasso have to see if the purchase interfere with the other objectives such as registering for college or retirement.

"Everything seems cold and calculating, and should be," he said, noting that the company people want to help for a strong Business emotional decisions to avoid.

After an annual report released in April by the National Association of Realtors in Washington DC based, by the customers who buy a primary residence rose in 2015 to 65 percent from 60 percent after falling 67 percent in 2013.

Part of the holiday shoppers dropped to 16 percent from 21 percent.

"Thirty-seven percent of holiday shoppers plan to use for a holiday or a family of their property," said the report.

"Sixteen percent plan your vacation in a primary residence in the future to make, and has bought 13 percent of low real estate prices and the buyers, a good deal found."

Sometimes trying owners of vacation rentals to make it work financially more by allowing them to rent the property when you are not using. These complications, too.

As the owner of the place to use as a second home, the mortgage interest from your gross income is fully deductible. If the house is rented for 14 days or less during the year, homeowners can pocket the money tax-free - even if the rent $ 10,000 a week. But if the second house is rented for more than 14 days a year, owners need to declare any rental income to the IRS.

Thomas Johnson and his wife, Cathie, bought in 1981 a holiday home on the Outer Banks. We rent when not in use.

"A lot of money is generated, allowing us to travel the world," said Thomas Johnson, 69. "It would be a financial burden on us, even if we are not in the rental program.

"We spent three weeks in the autumn and 10 days during the New Year holidays with all 10 of our nuclear family. The rest of the time and lease headed. The manager, the invoices and send us over paid.

"Ninety percent of the time things are smooth. But we have no illusions that if a hurricane of four or five strength comes in this way is not much risk are confronted," Thomas Johnson said. "It there therefore pitfalls. But our experience was very positive, and we would all start again when we were 10 years younger."

Tribune News Service

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