Tax Secondary Residence
Hi,
I own a primary residence in Calif. This Oct 2004 I will have lived in it for 2 years. I'm looking to buy a home out of state within the next couple of months. I will realistically be living and working in California. Is there any way to claim primary residence out of State so that I can get a better interest rate? Or should I just claim it as a second/vacation home and take the higher interest rate? My intention is to soon rent out the outofstate home and possibly sell it in 5 years. thank you!
Fraud is not the answer... finance it as an rental/investment if that is what it will be. Your looking at maybe ~.5% difference on traditional long term fixed financing. A commerical 5yr ballon note is another option (would allow you to hold in LLC also for asset protection and to keep loan of your credit report), cheaper to close, could probably get in at Prime + 0-1% and maybe a ~6-7% cap. Other loan products from brokers or credit union may offer the same rates either way.[ Edited by c5hardtop on Date 07/16/2004 ]
If you search on the board, you should find a recent posting about this. It seemed alot of people do what you are thinking about, however, the bank might check up, etc.
Search the posts and you'll find it. I agree with the previous posted, I wouldn't do it. In the long-run, its just not worth it.