Why buy a mountain home? In one word… profitability. The housing market continues to gain momentum as we head into 2016. Owning a second, or vacation, home in the mountains is ideal for not only the avid skiers and ice fishermen, but also for those seeking extra income or those planning for retirement.
Advantages for purchasing a home or log cabin in the mountains range from vacation convenience to planning for retirement. However, the most common theme seems to be the financial advantage. Vacation properties are more likely to retain their value and appreciate because of their geographic location. Add in rental income received when not in use and tax deductions and your financial gain could soar.
Before jumping into a big purchase, there are things to consider first.
- Determine your ideal location. Where in the country do you want to live? Do you need to be near a resort?
- Establish a price range. Don’t put yourself in financial strain. Assume that your down payment, closing costs and furnishings will be 33% of the purchase price.
- Establish required and desired amenities. What is important to you? If you want to rent, consider certain amenities that renters will want such as a fireplace, updated furniture and flat screen TV’s.
- Engage a real estate agent. A good agent can guide you through the purchase process and help you find financing. More specifically, find an agent with expertise in mountain properties.
- Consider a property management company. If you are going to rent your cabin while you are away, you need someone to manage it. You can hire a professional company, which is the more expensive route, or you can use VRBO (Vacation Rentals by Owner).
The bottom line is that both vacationing and living in the mountains can be idyllic. Fresh air, endless hiking and skiing opportunities make the mountains a fun and healthy option. If used correctly, you can also gain financially. However, just like coastal living, living in the mountains is not for everyone. Do your own research on the positives and potential negatives before making your move.