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3 Things to Know Before Buying a Vacation Home

3 Things to Know Before Buying a Vacation Home

by | Jun 25, 2022 | Blog

So you’ve decided to buy a vacation house, but where do you start looking for one that meets all of your demands? There are many factors to consider while looking for the ideal home away from home, from new appliances and community amenities to location and solitude. For more information on what to consider while buying a holiday house, we prepared a checklist for you!
1. Determine the Type of Property YOU Want
 
It can be difficult to sort through all of the available luxury mountain homes, mountain cottages, high-rise condos, and lake villas. As a result, when searching for vacation houses, it’s crucial to focus on your lifestyle and what you enjoy. Avoid luxurious condos in the city if you prefer a cabin in the woods.
 
Here is a quick checklist of things you need to consider:
✓ Do you have kids?
✓ Do you have pets?
✓ How many rooms do you need for your family?
✓ How often will you visit?
✓ What is your preferred season during your vacation?
✓ Do you have the means to travel to your vacation home?
✓ What kind of activities do you want to do when on vacation?
✓ Will you need a parking space?
✓ What are your preferences in terms of style, and amenities?
✓ Will this be a retirement home?
✓ Are you looking for a Legacy property for your family?
 
2. Figure Out Your Budget
Vacation houses are expensive! Many purchasers are unaware that second-home mortgage rates are higher and that the requirements for financing a second house differ from those for a primary dwelling.
 
What you should know about second mortgages
 
A second residence might be a wise investment. It can not only provide you with a holiday spot and help you avoid costly rentals, but it can also create cash flow.
 
Your vacation house could theoretically pay for itself if you rent it out and utilize the money to pay the mortgage.
 
But before you jump in, make sure you know the laws and requirements for a second mortgage. They’re not the same as the mortgage on your primary residence.
 
Also, if you are thinking of renting the second-home out when you are not there, be sure to check the local laws to see if your property is eligible for that.
 
Here’s everything you need to know about it.
 
3. Evaluate the Location
Not just in terms of real estate market value, but also in terms of selecting which facilities are most essential to you, finding a decent location for your vacation home should be a top priority.
  • Do you want to be able to walk to the lake from your home?
  • Would you like to be near golf courses or ski resorts?
  • Do you want to go out for some nightlife, dining, shopping, or entertainment?
Consider which places would provide you with the ideal holiday experience, and then search for properties in those areas.
 
Besides the fun activities you can do, you also need to consider the facilities available near your vacation home.
  • Are there any grocery stores?
  • Are medical facilities available?
  • Is the community friendly?
  • Is the area safe and secured from any form of threats?

The Pros and Cons of a Vacation Home

Here are some of the most typical advantages and disadvantages of purchasing a vacation property that might have a significant impact on your life.
Pros of purchasing a vacation home:
  • It’s an investment, and like your principal residence, it’ll probably appreciate in value (especially if you settle near popular areas like a beach or mountains).
  • This property will allow you to save money on a place to stay and stay for longer than you would in a holiday rental, enhancing your own vacation experience. It will also provide you with a location to invite loved ones for some R&R!
  • Make money by renting out this property during the months you aren’t there or even to other vacationers.
  • If you plan to buy a vacation home in Colorado, get help from a local commercial real estate expert to give you the best properties to choose from.

Cons of purchasing a vacation home:

  • Vacation homes are not cheap! You’ll have to pay a new mortgage, as well as property taxes, insurance, and utilities. These fees may imply less money saved for other goals, such as a college fund or retirement.
  • When you’re not there, you must consider the maintenance and security requirements. Even with today’s technology, you can watch your property from afar, but what will you do in the event of an emergency if your vacation house is far distant from your regular residence?
  • Will you become bored with the scenery? This is why it’s critical to avoid making an emotional judgment when buying a vacation home. Do you think you’ll be wishing for a change of scenery in a few years? Will you refrain from taking vacations somewhere else?
Still hesitant? Book a consultation today with a commercial real estate expert to determine the steps you need to take to decide!
Cynthia Daughtrey, Esq.

Westward Advisors

cynthia@westwardbroker.com
303-548-9659
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Can Solar Panels Increase the Value of Your Property?

Can Solar Panels Increase the Value of Your Property?

by | May 30, 2022 | Blog

Solar panels are a great investment for commercial real estate. There are numerous advantages to purchasing solar panels. One of them, it turns out, is an increase in property value and they also help the environment.
 
A study by the University of Colorado Boulder showed that commercial properties located in Colorado with solar panels had their property values increased by an average of $5 per watt installed.
 
Ecological disaster is one of the top three potential threats for humankind according to the World Economic Forum. If a major ecological disaster were to happen, it would lead to a lack of food and water which could lead to numerous deaths. Solar panels are an environmentally friendly option that can provide electricity without releasing greenhouse gasses into the atmosphere. Many companies have installed solar panels to lower their costs and at the same time increase the value of their properties.
The Advantages and Disadvantages of going Solar
 
A solar panel system isn’t cheap, but it pays off in a variety of ways. Consider these benefits and drawbacks when deciding whether or not to switch to solar energy, and do your study depending on your specific region and environment to determine if it’s a suitable fit.
 
PROS: Solar panels reduce your energy expenditures dramatically, lower your carbon footprint and emissions, and protect you from escalating electricity rates.
 
According to the United States, A property with an average-sized solar array is worth nearly $15,000 more to purchasers, according to the Office of Energy Efficiency and Renewable Energy.
 
Other studies have found similar evidence that a solar system can increase the value of your home. A Zillow survey indicated that homes with solar panels sold for 4.1 percent more on average, and a Lawrence Berkeley National Laboratory study found a $5,911 resale increase per kilowatt of solar electricity.
 
Furthermore, several jurisdictions provide homes with tax credits and rebates to help cover the cost of solar installation. This can significantly lower your initial investment and result in a higher return when you sell later.
Transitioning to solar energy has no hard and fast numbers.
 
There are a lot of factors that can contribute to a higher (or lower) return, all of which you should consider as you crunch the statistics and decide whether it’s worthwhile.
  • Your location will have a significant impact on your solar potential. It will also influence how much a solar addition is valued by buyers, with some places experiencing higher-than-average resale values as a result of solar energy and others seeing lower-than-average.
  • Larger solar systems generate more energy and are therefore more valued.
  • When calculating your potential return, consider the average cost of solar installation in your area. It also affects resale value, as some purchasers may determine that purchasing a property that is already set up for solar is more valuable than paying for installation on a home that isn’t.
 
Cons: Solar power is a renewable energy source and is considered to be the most sustainable form of electricity. However, it does have some disadvantages that need to be taken into account before making a decision.
Solar panels are inefficient compared to other sources of electricity such as coal or natural gas. They are also costly and take a long time to pay off. Furthermore, the sun does not always shine, which can result in energy shortages during off-peak hours. Solar panels vary in price based on the region where they are installed, making it impossible to compare them to other forms of energy.
 
Going solar has a lot of benefits for you. Consider making the switch if it’s within your budget and reaping both significant energy savings and a significant rise in home value.
 
For best advice, consider seeking help from a local expert to determine whether going solar is beneficial for your property.
CYNTHIA DAUGHTREY, ESQ.
Westward Advisors – Commercial Team Lead
cynthia@westwardbroker.com
303-548-9659
Things to Consider when Buying Investment Property

Things to Consider when Buying Investment Property

by | Sep 6, 2021 | Blog, Business, Lifestyle, Real Estate

On the off chance that this can be your first time venturing into the world of investment properties, it’s typical to feel a bit overwhelmed by the procedure. There is a lot to ponder, and a lot at risk, too.

You need to have a strong understanding and a clear goal to determine what makes a good purchase, whether it be for a condo, a townhouse, or a single-family home. When you do it right, you will have a definite return through a passive income, tax breaks, and definite equity gains.

To help you out, here’s a quick guide on things you need to consider to determine whether it is a good idea to take the leap in buying an investment property.

Location, Location, Location

Location, location, location’, is a shared mantra in real estate. Write this down on your priority list – location first, property second. Location is the key to valuable real estate.

Though we do understand that you are going for the physical structure, having the right property in a wrong location is most likely not the property you need at all.

You need to consider the appearance, accessibility, and facilities of a neighborhood as well as plans for expansion and development. Also, a lot’s nearness to factors like busy roadways and public centers makes it less advantageous for resale.

Furthermore, acreage often outdoes the value of a property since land has a tendency to increase in value.

Define your property type

It is best to lay down all your plans and specifications, and define the type of property you want to invest in.

Ask yourself these questions, do you prefer to have a single-family home or do you want a multi-unit property? Or are you going for a low-maintenance condo

Notably, you can actually get more cash flow with multi-family property, however, single-family properties tend to acquire more equity appreciation potential in thriving real estate markets. Or maybe, you prefer to have a townhouse in the mountain area?

Your answer to these questions will determine the next steps your real estate agent will be taking to provide you the best options.

Best time of year

Real estate markets undergo seasonality, which results in a certain rise and fall at specific times, all year-round. The best time to purchase a property every so often ends up in the late summer or early fall.

About this time of the year, there tends to be less competition compared to the peak season during spring and summer, despite that, there is still a quite a good number of properties on the market.

Bedroom count matters

A 3-bedroom property versus a 4-bedroom one for the exact same size or square footage, usually does not rent for the same price. Though they are often sold for the same price. Positively, having a home with more rooms is always an advantage – more uses, bigger chance of charging more for rent, opportunity to do home improvements, and is preferred for family buyers. However, that is always not the case, since more rooms compromises other home spaces.

On the bottom line, it is important to check with your real estate agent the pros and cons of having a 3,4, or 5 bedroom space to make sure that you maintain your profit margins as high as possible.

Vacation Rental Management

You won’t want to spend your time managing vacation rentals since it entails a lot of work. Thus, most homeowners opt to outsource these tasks to short-term rental or vacation management companies.

Partnering with them includes listing the rentals on online booking platforms, setting the price for each rental and making adjustments for season changes; responding to inquiries from potential and existing guests; and communicating with cleaning and maintenance staff all throughout the duration of your contract with them. Property managers earn a commission from every booking they successfully confirm.

There are a lot more factors that you need to consider but these are the focal things that will help you kick start your investment. However, it is best to keep in mind that there is no guarantee for a big return in your property investment – you need to do rigid planning on selecting and buying your investment property, with high consideration of market trends and general guidelines.

Thus, it would be best to always reach out to your local real estate agents before making the leap. Contact Westward Advisors for a consultation or book a no-obligation call with us at 303-641-3341.

 

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