Becoming a Second Home Owner in Telluride
If you have been thinking about buying a second home this year, chances are, you are not the only one as the hottest segment of the real estate market is in top vacation destinations. The popularity in purchasing vacation properties continues to grow due to factors such as the looming retirement age of Baby Boomers and the uncertainty of investing in more traditional venues. According to the National Association of Realtors, sales of vacation homes in 2012 rose 10.1 percent to 553,000 from 502,000 in 2011. People purchase second homes for peace of mind, a post-retirement getaway, an investment opportunity, or a place to spend time with the family. Regardless of your reasons, here are a few things to consider and tips to employ when shopping for a home in Telluride and Mountain Village.
The earlier you get into the Telluride real estate game the better. Supply in our area is limited due Telluride's strict growth policy which is directly linked to water quality in the Telluride region. Combined with the statistics that show continuously rising property values is a clear indicator that the time to invest is now. Purchasing a home at lower prices poses a better chance for larger profits when the time comes to sell the property. Of course, take time to make sure you know what kind of property you want, where you want it located, and what your financial options are. We ask clients considering a mortgage option to have a good faith estimate performed before previewing property and that it is done with a Telluride or Colorado mortgage company. Talking to more than one lender will ensure that you have an accurate view of how much you can afford and lenders in the area are more familiar with second home purchases and the different properties around Telluride and Mountain Village and any lending restrictions which may apply.
Think about what you want in a vacation home prior to talking with a realtor. Do you want it primarily for a vacation home or a rental property? Either type of property has its own benefits including tax breaks, a getaway for the family, a future retirement home, renters to make your mortgage payments for you, and a smart investment opportunity. Where do you want your vacation home to be located? Properties with views or in prime locations will be more expensive than their less visible counterparts, however, these less visible properties offer more space and more privacy. Furthermore, take care to visit the potential spot a couple times to get to know the area. Make sure that your neighbors will be desirable and that a new home is not in plans to be built right outside the window. Your neighborhood and its makeup will be a determining factor of how much you enjoy the new home.
When making the decision to add another home to your financial equation, be sure to think about the future. Consider added expenses beyond the monthly mortgage and interest payments. There will be utilities, a phone line, furniture to purchase, and possibly homeowners’ insurance and association fees. Many of the condominiums in Telluride will have Home Owners Associations for grounds upkeep, maintenance, and insurance. Find out if the property will come furnished. If the property was already a rental, chances are it will come partially or fully furnished, thus lowering some of the start-up costs. If you are interested in having a rental property, consider how you will manage the home. Larger companies will generally produce more rentals, but with higher fees while smaller companies offer better profit splits but may rent the property less often. Figure out which scenario works better with your financial plans.
Having a second home in Telluride is a great way to invest your money in something that your family will enjoy year after year. Speak to an Exclusively Real Estate realtor today to start finding your dream vacation home.