Summer has turned many people’s thoughts to second homes and Ludlow VT vacation homes. Unfortunately, though, encouraging statistics about the Ludlow VT vacation home market have been muffled under some of the negative news about the current economy and housing market.
According to the National Association of Realtors’ 2007 Investment and Vacation Home Buyers Survey, second-home sales accounted for one-third of all existing and new-home sales in 2007. A large portion of those purchases were vacation homes. So – why do families buy these “homes away from home?” The survey found that several factors go into the decision to buy a second home. Eighty-four percent of buyers wanted to use the home as a family retreat; thirty percent planned to use the home as a future primary residence; twenty-six percent want to diversify investments, and 25 percent plan to rent the home out to other families.
Although this article uses a beach vacation rental condo as an example, the tips included are valuable for any Ludlow VT vacation home owner as well.ISellVermontRealEstate.com. You may also begin searching for Ludlow VT property on the MLS!
Here are some of the many tips for retaining loyalty among your renters:
– Forget neutral! Bring on the “vacation-y” décor, but try not to go overboard!
– Furnish with easy-to-use furniture that is easy to clean and can withstand wear and tear
– Stock up on plenty of family-oriented indoor activities like board games and playing cards
– Include some homey touches like a binder of local restaurant menus or personal tips on local attractions
To learn more about Ludlow VT real estate or owning your own vacation home, please call me at 802-353-1983 or visit
This article from 2nd Home Journal offers a fantastic list of tips for remodeling your second home. If you already own a Ludlow VT vacation home, you probably already know that remodeling a second home presents unique challenges. Below are the 10 main tips, and the article contains the full details on making your spring remodeling projects a success!Hire a competent designer or architect
– Define your total project budget
– Design for low maintenance and sustainability
– Get three bids
– Do reference checks
– Plan at least a 10 percent contingency fund
– Synchronize payments with work completed
– Hire an experienced project manager
– Anticipate issues and stay focused ISellVermontRealEstate.com. You may also begin searching for a Ludlow VT vacation home here!
– Do your research; prioritize your needs
Ready to learn more about owning Ludlow VT real estate? Please call me at 802-353-1983 or visit
Lawrence Yun, NAR Chief Economist, said lifestyle factors and strong demographics remain positive for the vacation home market. “Investment considerations are secondary for vacation-home buyers, so there is some dormant underlying demand,” he said. “A peak of population is moving through the prime years for buying recreational property. It is welcoming to see investment sales returning to pre-boom activity.”
To learn more about investing in Ludlow VT real estate, please call me at 802-353-1983 or visit ISellVermontRealEstate.com. You may also begin receiving automated emails containing Ludlow VT real estate that matches your criteria here!
This article from the Wall Street Journal offers a great, comprehensive overview of purchasing and owning Ludlow VT real estate to be used as a vacation home. It follows the story of a couple beginning with deciding to purchase in VT, to maintaining the property, and how they chose to handle renting the property.ISellVermontRealEstate.com. You may also request complimentary e-books and relocation information here!
Important topics for all vacation home owners that are covered include:
– Researching the local rental market and important factors to consider
– Determining fees/maintenance costs ahead of time
– Deciding who will manage and maintain the property
– Deciding how rental income will be received and used
– Determining the IRS status of the home (second home or vacation home?)
– Drafting a rental contract
For more information about purchasing Ludlow VT real estate, please call me at 802-353-1983 or visit
This article is presented with permission and written by Denise Lones, M.I.R.M., CSP
Journalists are still riding the bandwagon of fear, reporting that second home purchases are going to be no more. Just last week, I heard a pundit advising people to keep their money in their primary residence because of the “impending recession”.
This is ridiculous. Nothing could be further from the truth. Contrary to popular belief, investing in a second home is—and will continue to be—a smart buying decision for many homeowners.
We live in the wealthiest country in the world. Second home buyers are not going anywhere. While the media hems and haws about all the unfortunate people who are in hard times, they completely ignore the fact that there are others who still have lots of money to invest. And what better investment than real estate—even if it’s not your primary residence?
I’m even going so far as to make a radical prediction:
Second home purchases will rise in the next five years.
That’s right—rise! Not diminish.
1. As people age, they experience an increased need to have more quality of life and time away from home.
People love to get away. If they have the money, why not? They want a lifestyle change—the ability to go to a “home away from home”. Whether it’s a cottage in the mountains or a seaside shanty, there’s nothing like having a secondary place to escape to.
2. People have money and they want to invest it.
Traditionally, real estate is more stable than the stock market. This makes it a much more attractive investment for anyone skittish about putting their hard-earned money in the hands of Wall Street sharks.
In addition, the recent and dramatic drops in the Dow Jones have stirred up many valid fears among investors. For that very reason, real estate will continue to be the safer investment—guaranteeing that second-home buyers are here to stay.
Tell your clients about what’s going on. Don’t hold back. Crunch the numbers for them so that they see the incredible value of a second home.
3. People love to own real estate.
The very idea of being a “real estate investor” is enough to make some people purchase a property. Having that label is a sign of prestige, and raises people’s perception of themselves.
Whether or not you find this type of vanity attractive or repulsive, forget about how you think. Again, think like they think. It’s an undeniable fact that such people exist. They love nothing better than to go to cocktail parties and parade their wealth in front of others—describing their properties in detail.
Rather than despising these people for their snobbery—which many of us fall into the habit of doing—learn to love them for their ability to supercharge your business. With just a handful of wealthy investors as clients, a real estate agent can make a fortune.
4. Second-home communities are creating rental income possibilities for investors.
Many developers of second-home communities know that by including certain services, investors will take advantage of the additional income they may receive. Services such as having a concierge on duty 24/7. Or rental pools that encourage owners to rent during the off-season.
Developers have known for a long time that there is a huge market of second-home investors out there. By installing such services from the get-go, they maximize the potential of their community to attract them.
They know people will rent when they’re not there. Why pretend they’re not going to? Now, they encourage them instead. It’s a win-win for both the developer and the investor.
5. Having the ability to purchase a second home is an attractive trait to lenders.
Remember that second-home buyers have a solid track record being the owner of a first home. If a mortgage is all paid for and the buyer is looking to invest in a second one, then chances are this is a good client for the lender. It’s just plain easier to find financing if you already own a home.
Add in possible rental income and lenders become even more enthusiastic.
Side note: I know many of you reading this are struggling with mortgage payments of your own and can’t imagine buying a second home, especially in the current economic climate.
But in order to function best as a real estate agent, think outside of yourself. Think like an investor with a lot of capital. Where would you rather put your money—in volatile stocks or in a second home that you know will appreciate in value over the next 20 years?
As a real estate agent, what an opportunity it is to educate your wealthy clients about the value (and joy!) of investing in a second home rather than a Wall Street portfolio that has a higher chance of going bust.
Don’t listen to the media. Don’t listen to conventional wisdom. Don’t listen to people in financial trouble.
Second-home buyers are here to stay. Find them. Educate them. Help them make more money. When you do, you’ll see your own bank account grow.
To learn more about buying a second home on Okemo Mountain VT or Ludlow VT real estate, please call me at 802-353-1983 or visit ISellVermontRealEstate.com. You may also request a relocation package by clicking here.
Continuing with last week’s discussion about preparing for tax season, I wanted to spend some time this week covering issues related to paying taxes on vacation homes. Many homeowners in the Okemo Mountain area use their property as a vacation home – but can these homes truly be claimed as vacation properties?This article from RealEstateJournal.com answers this and other important questions, such as:
When and under what circumstances do I have to pay taxes on rental income?
What sort of deductions can owners of rental properties take?
If my vacation home is considered a secondary home (not a rental home), what deductions can I take?IRS Publication 527: Residential Rental Property
IRS Tax Topic 415: Renting Residential and Vacation Property
IRS Publication 925: Passive Activity and At-Risk Rules
To learn more about owning an Okemo Mountain vacation home or Ludlow VT real estate, please call me at 802-3531983 or visit ISellVermontRealEstate.com. You may also begin searching the MLS here!
Once you have determined which category your property qualifies as, there is a helpful chart in the article that will give you an idea of what to expect as far as property taxes this year.
Other helpful links on this topic:
According to this MSN.com article, it could indeed be possible for a vacation home to pay for itself in the long-run.ISellVermontRealEstate.com. Or, click here to sign up to receive automated emails of new listings that match your criteria.
Investor Christine Hrib Karpinski offers these three basic rules for purchasing and managing a vacation home:
– Vacation homes need to be rented 15 to 17 weeks a year in most areas to break even.
– Internet advertising is essential. Karpinski recommends advertising your home on 3-5 web sites to ensure the maximum amount of exposure.
– Consider cutting out the middle-man and being your own rental agent.
Karpinski also suggests asking yourself these four questions before jumping into vacation home ownership:
· Are you ready to do the research to find the right home in the right area for you?
· Are you willing to give up the use of your property during peak season?
· Are you willing to put in the necessary work, including advertising and maintenance duties?
· Can you hold on if things get tough?
If you are ready to begin your search for a Ludlow VT vacation home, please call me at 802-353-1983 or visit
If you are considering purchasing an Okemo Mountain VT vacation home in time for ski season, you may be curious about how you will be taxed on the prospective property.This article from Smart Money magazine explains how you can purchase a vacation home and afford to pay the taxes on it. In addition to covering timeshares and multiple residences, vacation homeownership is broken down into three main groups for tax-related purposes:ISellVermontRealEstate.com. Or click here to see my current listings!
· Use a lot, rent a lot (home is considered a personal residence but income must be accounted for)
· Rent a lot, use a little (home is considered a rental property)
· Use a lot, rent a little (home is considered a personal residence and income does not have to be declared)
If you are thinking of purchasing a Ludlow VT vacation home, please call me at 802-353-1983 or visit
Today’s mortgage market is uncertain, to say the least. Because of this, many investors and second-home buyers are jumping to the conclusion that paying cash is always the best way to finance their investment home.Real Estate Journal. Read her response and remember that an experienced Realtor is your best resource to help you find a lender who will give you sound, unbiased advice on the best way to finance the purchase of your dream home.click here to begin searching the Ludlow VT MLS. You may also visit my website or email me to learn more about Okemo Mountain real estate. I would love to help you invest in your dream vacation home!
Paying cash certainly eliminates the risk that comes with rising interest rates and the growing rate of foreclosure. But does it limit the tax benefits of homeownership? And can you really afford to have that much money invested in one asset?
This is the question that was recently posed to columnist June Fletcher in the