Thinking About a Vacation Home in the Tahoe Area?
You’re in love. There have been memorable vacations, fantastic skiing, summer camping and hiking, friend and family gatherings.
Should you by pass the hotels and rentals, bite the bullet, and buy a second home for future vacations?
Here are 14 steps to follow for a perfect answer:
- How is the Tahoe real estate market? An experienced agent can provide statistics on local price trends; are prices going up or down? Is the inventory high or low? This and other factors will help you understand the market more clearly.
- Understand your total costs. Owning a vacation home will eliminate costs such as hotels and 3 meals a day at restaurants but it may also add a mortgage, taxes and insurance. You may want to look at local appreciation trends to estimate costs over the next 5, 10 or 20 years.
- How far are you willing to travel to get to your vacation home? It’s approximately 3 hours from San Francisco to Truckee. Is there a direct flight? Truckee has an airport with regular flights from California city centers.
- Consider location, location, location. Ski resorts in the winter, beaches in the summer, as well as other year-round sports and activities continue to draw people to our area all year round.
- Decide if you want a property that is furnished or empty. A furnished home saves time and effort when trying to decorate from a distance.
- Are onsite amenities important to you? Golf memberships, access to spa treatments, restaurants can be found within communities or through memberships such as the Tahoe Mountain Club.
- Determine if the state of California considers you a resident. It doesn’t necessarily matter if you have your main home in another state. There are conditions that have allowed the State to consider a second home-owner as a state resident- which means a lot more paid taxes. If unsure, contact a reputable lawyer to work through any issues before a home purchase.
- Decide whether Nevada or California is a better financial situation for a vacation home. There are pros and cons for both states.
- Now, decide if the mountains, rivers, lake, or woods are more to your taste. Tahoe has all these options! Consider your lifestyle, your activities, and what your family enjoys.
- Last decision- do you want outright ownership, shared ownership, or fractional ownership? To collect all the local information and decide what is best for you- see number 11 next.
- Once the decision where to buy has been made, call Manon. You need a person who knows the neighborhoods, has worked with all price ranges, and understands what you want.
- Get your financing in place before you search. Pull your moola together, whether it’s cash or a loan. Manon knows excellent financial people who can make things happen.
- Now the stressful/exciting/heart-thumping period starts- the actual searching and choosing, the offers and contracts, the glitches and hitches, and finally, the closing. Expect the hitches and glitches portion- it’s extremely rare for a transaction to complete with one or two of these little surprises. Anticipate your surprises, and life will flow easier.
- The closing is over and you’re visiting your new home as a proud second homeowner. In addition to having a new destination for vacations, you also have the opportunity to earn a bit of money renting out your home to others. Check out this article for an overview of the options for managing a vacation home.
Congratulations! We’ll be seeing you soon on the ski slopes or the beaches- enjoy the best decision you could make.