Benefits of Investing in a Vacation Home in Palm Springs

Many people dream of having a vacation home but taking the plunge on the purchase of a second property can be daunting. Choosing the right location is essential, and an increasing number of people are now looking to one of the favorite desert getaways in California for their second home – Palm Springs. Lying on the western edge of the Coachella Valley at the base of the San Jacinto mountains, Palm Springs is around just a 2-hour car ride from Los Angeles and San Diego, making it the ultimate weekend bolthole.

 

Its great location isn’t the only reason why this desert resort city is so popular for second properties. Here’s why you should consider investing in a vacation home in the stunning, popular vacation spot of Palm Springs.

 

Take Advantage of Low Prices to See a Substantial Return on Your Investment

Knowing when to buy can be just as important as knowing what to buy. The 2008 recession saw prices in Palm Springs plummet, and while they aren’t quite up to their pre-recession value just yet, they are climbing steadily with experts convinced that if you buy now, you will see a lucrative return on your investment down the line. In the meantime, you can enjoy a comfortable second home in the highly desirable Palm Springs area that also has the potential for an excellent rental income should you choose to let it.

 

Palm Springs Is a Home Away from Home

While there is a lot to be said for far-flung adventures, Palm Springs gives you the opportunity to have a home away from home. There is plenty to do, from boutique shopping and a smorgasbord of world class cuisine to try to epic walking trails and rounds of golf. And with so many people having second homes in Palm Springs, you’ll become part of a familiar and colorful community. 

 

Your Palm Springs Home is Perfect for You to Home Swap or Let Out as a Vacation Rental

Palm Springs is an extremely desirable vacation location meaning that you should have no problem renting your new property out should you choose to do so. Vacation rentals could even provide a lucrative source of income that could help you to finance your second home. If you don’t want the hassle of letting it out, a home swap is a popular alternative. Home exchange programs are widely available, and you could use the opportunity to visit exciting new locations, while the owners of that home come and enjoy your Palm Springs property and everything that the area has to offer.

 

Palm Springs is a Golfer’s Paradise

With an abundance of scenic, challenging courses suitable for all abilities and budgets, Palm Springs is well known as being one of the top destinations for golf in the world. With something for everyone, it doesn’t matter if you a complete novice or you are a professional, you’ll find a stunning course just perfect for you. Better still, the exceptional weather conditions mean that it one of few areas where you can enjoy golf all year round. Unsurprisingly, these help to make Palm Springs a highly sought-after location for the weekend and week-long golf getaways, meaning that even if you don’t play yourself, you’ll have no problems renting out your home to someone who does.

 

Potential Tax Benefits of a Second Home

Many people are surprised to learn that there can be tax benefits associated with owning a second home, especially if you don’t rent it out during the course of the year. This is because it will be taxed much like a primary residence, with mortgage interest and property taxes deductible. If you rent it out for fewer than 14 days each year it is still considered a personal property, giving you distinct tax advantages. However, that doesn’t mean that there are no advantages of renting it out. While your tax situation may be different and you will have to pay tax on any income you bring in from your Palm Springs home, you’ll also have many more deductions, including utilities and maintenance. If you want to find out more about the potential tax benefits of a second home, we recommend you speak to your accountant.

 

Learn more about investing in a vacation home in Palm Springs, contact Phyllis Cyphers with Pacific Sotheby’s International Realty at (714) 323-1175.