Buying a vacation property in Denver is an excellent investment both in terms of a home away from home property for you and your family and in terms of a rental investment property. Denver is continually ranked as one of the fastest growing cities in the US and the Denver real estate market is one of the hottest markets in the country. This means that your short-term and long-term resale opportunity in Denver is immense and it’s only growing more so each year.
In addition to the ROI you will see in Denver Real Estate, there is also an abundance of property management resources to help you keep your vacation property in good shape and the tax advantages of buying a second home can be highly beneficial.
Let’s take a closer look at the advantages of buying a vacation property in Denver.
Fastest Growing Market
Denver has been at the top of the list for fastest growing cities in the US for several years. This means that Denver is also one of the fastest growing real estate markets in the US.
At a ten thousand foot high view, the real estate market really isn’t all that complicated. It all boils down to supply and demand. If there are a ton of people looking for houses in a city like Denver but only so many houses for sale then your home value will continue to increase.
Homeowners in Denver have continued to see their home values soar over the past decade as Denver continues to welcome transplants who need a new home in their new city. If you buy a vacation home in Denver then you can also expect your home value to soar as well. The only question is how much do you want to pay for your new vacation home? The longer you wait to buy, the more you’re going to pay.
I should note that making a good real estate investment in Denver requires a real estate agent in Denver who knows this city cold. The real estate agent in Denver you choose to work with should know each and every corner of each and every neighborhood as prices can change just a few streets up or down.
Plenty of Property Management Resources
The second great thing about buying a vacation property in Denver is that there is no shortage of property management resources. There are plenty of real estate agents in Denver and there are scores of property management companies that can manage the day to day of your vacation property so you don’t have to. These companies will handle everything from showings, bookings, cleaning, and even payments. Your real estate agent in Denver should have a list of reputable property management resources that they can recommend.
Tax Advantages
One of the biggest advantages to owning a vacation property in Denver are the tax benefits. Whether you are buying a vacation property that you plan to mostly use yourself (rented out for less than 14 days a year) or you are buying an investment property to increase your income – there are certain tax advantages.
We are real estate agents in Denver, not accountants. But you don’t get far in the real estate world without knowing a few accountants and if you’re smart, you learn from your accountant connections. So here’s a simple layout of what we know about real estate tax advantages.
If you plan to use your vacation property for your personal use – meaning that you plan to rent it out for no more than 14 days a year – then you can write off the property tax and your mortgage interest of your vacation home on your tax return, just like you do for your primary residence.
If you are buying a vacation home to use as an investment property that you will rent out more than 14 days a year, then you can write off the expenses associated with maintenance and property management. This means that buying a fixer-upper can be beneficial in terms of your taxes and you can write off the fees you pay your property management company.
The third tax advantage comes with selling one vacating property to buy another. If you fall into that category when you are entering the Denver real estate market, then you can avoid paying the taxes on your new vacation property in Denver.
Again, we aren’t accountants, but the real estate agent in Denver that you work with to find your vacation home should be able to refer you to an accountant that can answer all your tax questions.
