4 Tips to Buying in a Resort Town
There are many factors to consider when purchasing a home in a resort town. Try to identify why you are buying the property. Every time I wanted to buy something as a child; my Grandfather would ask, “Do you need it?” As I kid, I always said “YES!” because of course I WANTED it! Now that I’m older I can see the value in his question. My guess is that no one NEEDS a second home, but they want it. That doesn’t mean that buying a second home has to be frivolous and a waste of money. You may even make some money and get to enjoy a Steamboat home if you play your cards right.
Let’s launch right in shall we!
Tip #1: Income
Determine if you want the option to rent out your second home for some rental revenue. Knowing this will help when you set out to search for property as some properties have better earning potential than others. I always say that you won’t get rich, but the revenue will help offset the carrying costs of owning a 2nd home. Please lean on me and I can help guide you towards properties with the most rental potential.
Tip #2: Investment
Some properties in certain areas will appreciate more than others. For example, condos and townhomes closer to the mountain will always be in demand. Think of it as beachfront property. Look for complexes that are newer where the HOA dues are typically lower and don’t have as much deferred maintenance. Also, be honest with yourself. If you are into remodeling, then you will generally see strong appreciation when you sell it. If you are not handy and don’t have the stomach for managing a property from afar, then buy a newer and/or updated property that won’t need to be remodeled when you sell it.
Tip #3: Pick the Right Property
It’s important to determine what you are seeking when starting your search. Is the investment paramount, the feel of the home, location, view, amenities, etc.? There are so many elements to finding the perfect place. You are going to be spending time in the home and it’s important for you to LOVE it! Be honest with your Realtor and clue them in on the must haves and what is a nice to have. When shopping for property point out what you like and what you don’t like so your agent can help narrow the search in the future. In larger complexes, look for a unit with some special qualities and features like being on the top floor, views, great location within the building, near the pool, away from the pool, etc.
Tip #4: Understanding the Costs
Every state and town are different. Ask about taxes, utilities, construction costs, HOA costs, etc. Know that maintaining a home in a mountain climate can be challenging and potentially expensive. You can opt to have local Property Manager look after the property in your absence. Your agent can provide guidance based on what services you are looking for.
This is just that start to very important conversation about second home ownership in Steamboat. Call me and we can discuss it further with your interests in mind! (970) 846-9449.