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Vacation Homes: What to consider before you dive in…

Buying a vacation home is appealing on many levels. Having your own private getaway to run off to at a moment's notice is an exciting adventure to explore, but if you consider a few important details, it could be a great investment when you are not there as well.

When buying a home, there are three categories in which homes can fall: 1) Primary Residence 2) Second Home 3) Investment Property

The Primary Residence comes with tax benefits and require smaller down payments, depending on the mortgage and unless you are planning on being on vacation most of the time, your vacation home will not be your primary residence.

A Second Home cannot be rented out, but you do have access to it at any time. The tax benefits are similar to a primary residence, but you will need to qualify for a second home mortgage and will need to put at least 10-20% down.

An Investment Property will also require you to qualify and at least a 20% down payment, but lenders will consider a portion of the rent as income and can help you qualify easier. You will not receive the same tax benefits, but because you can rent the home out when you are not using it, the income can offset some of the costs. Some costs to consider: Closing costs, inspection, taxes, insurance, utilities, furnishings, property maintenance, cleaning crews between stays and travel back and forth. Another cost is an alarm system due to the fact that your vacation home will be a distance from where you live. This is not only good to deter criminals, but also can help detect a burst pipe, an electrical outage or fire. Any high tech alarm system can help as well as a friendly neighbor or property management company.

After you have considered all these factors, the best resource you can have on your team is a local real estate broker. They will know the area, the market, and can help you find just the right property to fit your needs. If you are looking to expand your portfolio, whether it is a primary residence, second home or vacation home, call our expert brokers at New Mexico Mountain Properties in Taos or Angel Fire. Our knowledgeable team can help you navigate this adventure.

To find Taos land for sale, Taos homes or condos in the Taos Ski Valley, call us @ 575-758-5852 or 575-770-3306 for Paula or for Angel Fire condos, Angel Fire land or homes call us @ 575-377-2626 or stop by the log cabin at the blinking light with the tipi out front. We look forward to serving you!

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