There are times when people would interchange the terms “investment property” and “second home” to refer to real estate that isn’t their permanent residence. These kinds of properties, however, are unique.
An investment property is a home you purchase with the intention of renting it out to tenants or selling it for a profit. A single-family residence, on the other hand, is a second home if you intend to live there for part of the year or frequently visit.
What Is an Investment Property?
The definition of an “investment property” is a property that’s not your primary residence, and is bought or used to benefit from tax advantages, profit from appreciation, or produce income. In general, real estate is seen as an investment if it is purchased with the intention of making a profit rather than a personal residence for you and your family. Examples of investment properties include residential rental properties, commercial properties, and properties purchased to flip (resell for a profit).
What Qualifies as a Second Home?
A residence you intend to use in addition to your primary residence for a portion of the year is referred to as a “second home.” A second home is typically utilized as a vacation home. But it may also be a place you frequently visit, like a condo in a place where you frequently do business.
Now that we know the difference, know that there are several specific reasons why purchasing a villa in Istria is a good idea: a peaceful lifestyle, money savings, amazing nature and gastronomy, and most importantly – simple procedures when it comes to buying if you’re doing it with the help of an intermediary.
So before investing, it is important to understand all the costs, conditions, and obligations. Check out our sale portfolio and get in touch if you find a property that might interest you.