Posts Tagged ‘second home’
The Latest Club Trend
Posted by Sibet B Freides in Real Estate Trends on December 1st, 2011
At Idea Associates, we have marketed golf clubs, equestrian clubs, lifestyle clubs, marina/boating club communities and many types in between. But now there is a new club taking shape that plays right into the health and wellness trends: The Outdoor Sporting Club.
They are popping up in the west for everyone from the “real” outdoorsman to those seeking fresh air and magnificent skies. One current example we are marketing is The Montana Sporting Club. The activities here are impressive including snowmobiling, cattle drives, hunting big game, fly-fishing, and endless miles of ATV trails. Or for those not so adventurous, there is a personal chef who will prepare your favorite wild game or practice your photography skills on one in a million views.
Some clubs offer “glamping” which is an upscale form of camping out but with luxury tents and bedding. Spa services can be found at most of the clubs.
How are these different from the clubs of the past? I believe it reflects a changing demographic and psychographic. Rather than spend 7 hours with your buddies playing golf, now many dads are choosing 8 hours of hunting with their kids and maybe extended family or friends. The club format today is much more inclusive while still being exclusive.
What trends are you seeing in club memberships?
Cheat Sheet on Second Home Tax Rules
Posted by Sibet B Freides in Real Estate Economics on May 31st, 2011
Are you in the market for a second home but are not sure about the tax benefits or what needs to be 
reported? Here’s a quick summary of the tax rules for second homes:
Second home use
If you use the place as a second home and not a rental, interest on the mortgage is deductible just as interest on the mortgage on your first home is. You can write off 100% of the interest you pay on up to $1.1 million of debt. You can also deduct property taxes paid on any number of homes you own.
Rental use
Many second-home buyers rent their property part of the year. If you rent the place out for 14 or fewer days during the year, that income is tax-free regardless of what you are charging for rent.
If you rent for more than 14 days you must report all rental income. You also get to deduct rental expenses, which can get complicated because you need to divide costs between the time the property is used for personal purposes and the time it is rented.
If you and your family use a beach house for 30 days during the year and it’s rented for 120 days, 80% (120 divided by 150) of your mortgage interest and property taxes, insurance premiums, utilities and other costs would be rental expenses. The entire amount you pay a property manager would be deductible, too.
If you limit personal use to 14 days the vacation home is considered a business and up to $25,000 in losses might be deductible each year. Fix-up days don’t count as personal use.
Tax-free
Although the rule that allows home owners to take up to $500,000 of profit tax-free applies only to your principal residence, there is a way to extend the break to your second home: make it your principal residence before you sell.
**Please note: This article is for informational purposes ONLY, you should consult a tax attorney or accountant to determine actual tax ramifications.
Is a Vacation Home Out of Your League? Not Necessarily…
Posted by Sibet B Freides in Real Estate Economics, Real Estate Sales, Real Estate Trends on April 26th, 2011
Have you been dreaming of a vacation home? Are you resigned to the idea that the current market is making your dream impossible? Think again!
Second homes/vacation/pre-retirement homes are priced right. If you were even remotely thinking of buying, there will probably never be a better time. Prices are reduced, and many distressed deals are being purchased at .30 cents on the dollar.
Conversely, beware when purchasing distressed properties because you won’t know the future of the project. Is there an active HOA to manage finances and other issues? What happens if an investor buys the project? How would the future inventory be priced? Unfortunately, along with affordable pricing comes a lot of unknowns.
At Idea Associates, most second home purchases we are seeing for our clients are cash deals. Anywhere from downsizing to Intown Condos to planned retirement housing in second home neighborhoods – many are bought with cash. The price is lower so buyers can afford to pay with cash, especially since most can’t get financing anyway with banks’ new stringent policies.
With the future so unsure, most buyers don’t’ believe they are making money in investments for these second homes, so they are choosing to buy something they want for the future instead.
Have you personally considered taking advantage of the prices and buying a second home? If you’re a builder, developer or agent – what are the trends you are seeing?
