What Is Home of Property?

Home of property refers to the legal designation of a person’s primary residence. This classification affects the taxes one pays and the laws that one follows. Classifying a property incorrectly can have significant consequences and even land one in trouble with mortgage lenders. Learn more about this concept and how to make the best choice when it comes to classifying a property you own or are considering purchasing.

Real estate owners may use the terms second home and investment property interchangeably, but they have different legal meanings. A second home is a single-family dwelling that you live in for some part of the year and visit regularly. An investment property is any real estate that you own for the purpose of generating income, like renting it to tenants. It’s important to understand the difference between these properties because it can influence how much you pay in taxes and the type of mortgage loan you can obtain. If you want to know more about home of property, contact a licensed real estate professional for help.