Are you in the market for a second home? If so, congratulations! Not only can you look forward to having a place to relax, you also can garner some tax benefits that will help you build wealth.
If you had enough money to pay off your mortgage right now, would you? Many people would. In fact, the ‘American Dream’ is to own your own home, and to own it outright, with no mortgage. If the American Dream is so wonderful, how can we explain the fact that thousands of financially successful people, who have more than enough money to pay off their mortgage, refuse to do so.
Let’s be clear, buying a second home can be a great investment. However, wealthy physicians should buy second homes with as little of their own money as possible, leaving the majority of their cash in other investments where it’s liquid, safe, and earning a rate of return. One of the biggest misconceptions homeowners have is that their home is the best investment they ever made. Yet, a rate of return is always greater when physicians maximize the power of leverage.
If you are a practicing physician, have done a solid job managing your credit and have been successful in your saving efforts – buying a second home could be advantageous in today’s market, especially since home prices have declined and interest rates are near bottom.
If you would like to purchase a second home with as little as 10% down, please let us know how Physician Relocation Specialists can help you.