http://coldwellbankersunvalley.com/blog/categoryname_land-for-sale/sort_entrydatetime-desc/ Having a vacation home in a destination location can be magical. Having that luxury house near the slopes, just waiting for you to swing by for your next ski weekend, can mean it’s that much easier to simply make a spur of the moment decision and head out for a weekend away. However, owning a vacation home, luxury or otherwise, comes with a few pretty sizeable considerations that many prospective vacation home owners don’t think about. Before you dive into the hunt for just the right luxury house to purchase, stop and consider whether making that purchase is really right for you and your situation. If you missed it, be sure to check back to our previous post for part 1 of our vacation home considerations. A Brief RecapThe Financial AspectAs we discussed last time, the biggest consideration for buying any home is the financial aspect—and that goes double for a vacation home. It’s important to be sure you’ve prepared as much as possible for the expenses that will come from purchasing another home, beyond just the down payment and closing costs. Be sure you’ve calculated ongoing fees, such as  homeowners association dues, insurance, mortgage payments, and the cost of a caretaker. Renting out your vacation home to others when you’re not visiting can be a way to help subsidize those expenses, but doing so can have a few pitfalls in addition to the perks. Renting Your Home or NotRenting out your vacation home is a good way to collect additional income to cover the home’s expenses. However, you’ll need to account for the cost of a cleaner and handyman to care for the home in between renters. You’ll also want to find a way to balance higher rental rates at peak holiday times with your family’s own vacation plans. Many vacation rental owners don’t get the chance to visit their vacation home during major holidays because the rental income is so much higher that they cannot afford to pass that up. However, if you choose to leave your home empty between visits, you could be missing out on that rental income. Empty vacation homes are also a higher target for theft, even with a good security system. Additional ConsiderationsYour Visit FrequencyOne of the other big things to take into account before you dive into that luxury house purchase is how often you actually make it out to that vacation spot. Say you really love skiing, and you’ve fallen in love with Sun Valley, Idaho—and who doesn’t love our picturesque little mountain town? If you live within a couple hundred miles, popping out for a weekend is pretty feasible and having a vacation home makes it easier to take that spur of the moment trip. However, if you live out on the East Coast, getting across the country to visit will take more effort. If you know you’ll only be able to get out for a visit once or twice a year, continuing to rent during each visit may be the more financially savvy decision. A vacation home may be an investment, but it’s also one you should use regularly to be worthwhile; if you aren’t going to rent it out between visits, you should be visiting often enough to make that purchase worth it, however you choose to quantify “worth it.” The other part of that, of course, is buying a home somewhere you know you’ll want to return to time and again. If you prefer to try new locales each vacation, purchasing a vacation home might restrict your ability to keep traveling. Local Rental RulesThe other big piece of owning a vacation home, whether you rent it out or not, is knowing what is and isn’t permissible in the area and preparing for the local, state, and federal taxes on the property. Before you purchase a luxury house, you’ll want to look into any potential restrictions. Some homeowners associations may require you to use a certain rental program or property manager. You’ll also have to pay attention to local noise laws and be prepared to abide by the HOA’s rules as well as local restrictions. The other part of this is preparing for the taxes and fees you’ll need to pay as the owner. Renting out a vacation home is somewhat akin to being an innkeeper in terms of many tax laws. You’ll need to be prepared to pay taxes on the home accordingly, and budget that into the rental fees you charge to make use of your home. You’ll also need to look into local rental and landlord laws to better understand what you can and cannot do when setting up rental contracts. A vacation home can be a great investment and a benefit to your family, but it’s important to prepare for what you’re getting into. For experienced assistance in preparing to make your vacation home purchase, trust the local experts; contact the Coldwell Banker Distinctive Properties team today to find the right luxury house for you!  http://coldwellbankersunvalley.com/blog/5831/is-a-destination-vacation-home-worth-it?-part-2/ Mon, 28 May 2018 12:00:00 -0700 When you find the perfect vacation destination, you may find you never want to branch out and try somewhere else. After all, that cozy beach community or bustling mountain town has great restaurants, a ton of opportunities for fun, a welcoming community, and generally provides a great place to get away and relax with loved ones. But after going back half a dozen times and ending up in a different vacation rental each time, it can start to get a bit frustrating. You’re visiting to relax, kick back, and enjoy your vacation, not spend the whole trip learning all the quirks of a new place. As much as you love a destination, it can seem like a great idea to just buy a home in the area. But is buying that vacation home actually worth it?Weighing The InvestmentWhether we’re talking about a ski town like Sun Valley or a beachgoers haven like Miami, buying a house in any vacation destination specifically to use as a vacation home may sound like an amazing investment—and it certainly can be!—but there are a few things to consider before diving in. First and foremost, there’s the question of expenses. But there’s also the consideration of what to do with the home when you aren’t visiting, how you’ll handle any upkeep needs, and so on. Before you contact a real estate broker and begin wading through the list of luxury house options, it’s important to weigh all the variables and determine whether buying a vacation home is more worthwhile than continuing to rent when you visit. The Financial Side First and foremost, can you afford that investment property? While real estate is generally a good investment, there is no guarantee that you’ll be able to sell the home for a profit. If, for example, a recession hits, that income property may or may not hold its value; it may actually lose value until the economy picks up again. After all, destination vacations are some of the first luxuries that get scrapped when trying to buckle down and save money, which means homes in those destinations are fairly likely to lose value if the economy tanks. So, until the point at which you are ready to sell comes, you can’t count on income from that property. The biggest question to ask is whether or not you can afford the home. That means the obvious expenses like a down payment, insurance, and closing costs. However, those aren’t the only expenses to factor in. You’ll want to account for ongoing expenses like your monthly mortgage payment, HOA fees, property taxes, and any fees for a caretaker or property manager. And don’t forget to factor the cost to furnish the new home. All of that can add up quickly. The good news, of course, is that you don’t necessarily need to purchase that vacation home right away. You can always continue to rent while you take the time to get your finances in order.To Rent It Out, Or Not?The other major consideration, when purchasing a vacation home, is whether you’ll rent out the home when you aren’t there, or if it will sit empty while waiting for you. Both options come with pros and cons, so there is no easy answer here. Renting it out means you’ll be able to enjoy additional income to help subsidize the cost of ownership. However, if you’re renting it to other vacation-goers, you’ll need to find a reliable cleaner and handyman to care for the house in between renters. You may also choose to pay a property management service to handle renting the home for you, though there are also online programs like Airbnb and VRBO that help you rent vacation homes securely. The risk you run when renting out your luxury house is the damage that others may do, intentionally or accidentally. Because it isn’t their home, many vacationers will be less cautious around the property. The rental contract will protect your home to an extent, but damage may still happen. Then, it’s up to you to get it fixed and generally to keep your home in good repair. The other caution when it comes to renting out your vacation home is that you cannot count on that as regular income. During popular holiday times, odds are good you’ll be able to enjoy back to back rentals. During slower seasons, however, that’s less of a guarantee. Choosing to leave the home empty when you’re away is also an option. Doing so means you can reliably expect your vacation home to remain in good condition. However, even with an excellent security system, your luxury house will be more of a target to thieves. You’ll also want to have someone routinely check up on your home in case of accidents like a pipe bursting. This isn’t all to consider before choosing to buy a destination vacation home. Be sure to stay tuned for part 2 of our blog series. If you’re ready to start hunting for the right luxury house here in Sun Valley, contact the local, experienced team at Coldwell Banker Distinctive Properties today!  http://coldwellbankersunvalley.com/blog/5825/is-a-destination-vacation-home-worth-it?-part-1/ Thu, 17 May 2018 12:00:00 -0700