SECOND HOME FOR RETIREMENT INVESTMENT 100 OTHER REASONS
People approach the whole idea of owning a second home from a hundred different perspectives simply because a second home can answer so many different purposes. If you are an Las Vegas homeowner at the stage in life where making retirement plans is becoming a more immediate imperative, you might want to buy a second home as a vacation destination—but one which is also a tryout for your family’s future center of operations. Those who have spent a good part of their lives in cities sometimes seek a second home in the mountains or at the shore as a restorative refuge. People living in less crowded environs might crave a pied-à-terre for proximity to the city’s cultural riches. There can be a hundred different reasons (and that’s not even counting all the financial ones)! Once you begin to seriously entertain the notion, it becomes evident that deciding on which of many possible directions to pursue will involve weighing the tradeoffs each presents. In addition to an opening a conversation with the Las Vegas real estate professional whose advice you’ve come to trust the most, some of the main points you will want to consider— • If the second home is going to serve even temporarily as a weekend getaway spot, then buying within reasonable driving distance may be more important than you might assume. Keep in mind that the drive (or flight) will grow steadily less interesting as time passes. • In most instances, a second home will be occupied by members of your family only on a part-time basis. This brings up a number of issues—among them, insurance. Vacant properties present a different profile to insurers than do homes that are occupied most of the time. Hazard insurance tariffs could also differ from what you are used to (especially in flood-prone areas). Investigating insurance coverage and costs early on in your search will help you to avoid surprises. • You should consult your tax expert for details, but as a general rule, if the home is not rented out as a business proposition, you’ll likely find that you are able to deduct mortgage interest and property taxes on your Federal tax return. Then again, if you are thinking of renting the house out for more than 14 days per year, rental income is taxable. In that case, though, you’ll be able to use deductions for expenses, such as insurance, maintenance, professional fees, and sometimes even depreciation. Each situation will be different—again, your tax professional will have the relevant answers. • Financing a second home is similar to financing your main residence. You are likely to need a down payment of 10% to as much as 30% in some cases. If you are drawing on the equity in your current home, it’s only prudent to be able to retain a reasonable amount of reserves for unforeseen emergencies. Many people buy a second home in anticipation of retirement. If that is the case, think of factoring in the availability of quality medical and support services in your search areas. A remote cabin in the woods may seem appealing now, but as a retirement venue, maybe not so much! Thinking about the long range is never more important than when you are entertaining the purchase of a second home. I’m here to help clarify those issues, as with all your other Las Vegas real estate need.
GIVING YOUR LAS VEGAS HOUSE THE FULL GOURMET TREATMENT
“A kitchen can sell a house” is a proposition that often proves true—well-designed kitchens can drive value. Given the popularity of cooking shows, artisanal cuisine, and the growing number of new gizmos and gadgets concocted for the advancement of culinary hobbyists, selling a house in Las Vegas can turn on its gastronomical appeal—at least to a select segment of today’s home buyers. You may not want to fight it—especially if your house has a shopping cartload of gourmet potential. If you have a spacious kitchen, it could be a possibility! Consider some of the marketing maneuvers that have been shown to attract foodies looking for a place to lay their platters: Finding Foodie Features A Las Vegas house doesn’t necessarily need a fully outfitted gourmet kitchen to catch a foodie’s eye (although that doesn’t hurt, either). Any reasonably food-obsessed family will be attracted by features that focus on the preparation, storage, and enjoyment of delicious food. Rebranding a closet as the pantry, a deck as outside dining area, or even a basement bar as canning station can invite home cooks to visualize the unique culinary features your Las Vegas house has to offer. Milking the Kitchen If you are going to invest in any one remodel for your house, target the kitchen. But know the risks. In order to sell to a true gourmand, the kitchen will need to be up to snuff (and foodies are known for being picky). Simpler can be better when it comes to a soon-to-be gourmet kitchen—and it’s probably true that most any would-be chef will be bringing his or her own specialty gear to the party (it’s half the fun!). Focus on utility instead of bling, counter space over weird gadgets, and big sinks instead of big windows. Tempting Their Senses Don’t forget the power of suggestive staging when it comes time to tempt a true foodie. Many prospective buyers will be entering your house with hopes that they’ll be able to create their future fabulous tables here. For a foodie, that means the ability to prepare and enjoy delicious meals. It’s unimportant if the fantasy is a notch higher than their actual skill level—that’s what aspiration is all about. Indulge imagination by focusing on the senses. Offer pristine spaces, pleasing light, and generic (yet tempting) flourishes, such as a well-set table and evocatively, not-quite-bare counters. And don’t forget to remove any and all incriminating food vestiges before allowing foodies in for an open house! Your old cereal boxes, two-liter bottles of soda, and meals-in-a-box may be a busy weekday’s go-to fare, but they’re anathema to a true foodie. Banish them until the last open house visitor has departed. Remember, selling your Las Vegas house can wind up being all about how you market, stage, and re-imagine space. To garner foodies as buyers, pick up a couple of copies of Cooks Illustrated and Saveur, tune into The Food Network, and start to think like a foodie. And give me a call, too: between us, we should be able to produce a truly delicious sale!
LAS VEGAS MORTGAGE INTEREST RATES COULD BECOME A MISSED OPPORTUNITY
Las Vegas’s mortgage interest rates have been so low for so long that there is the definite possibility that the real value they represent—for both Las Vegas home buyers and sellers—may now be being taken for granted. It’s only natural. If you believe that past history is the best predictor of future performance, last January’s common wisdom that mortgage interest rates in 2014 would head up to at least 5% or more wouldn’t have fazed you a bit. One quick glance at the squiggly lines on a chart showing either 30-year or 15-year fixed mortgage interest rates reveals a pronounced downward slope. Ever since mid-year 2007, it looks like a playground slide. It does level off at the end, starting around three years ago; but if you take in the longer view, back to 1982, you see an even steeper tumble—all the way down from (gulp!) 18%! Only the bravest child would dare climb the ladder to that playground slide… For a couple of years, now, most of us assumed the bottoming-out of Las Vegas mortgage interest rates would reverse soon enough. But, as The L.A. Times pointed out on New Year’s Day, “…instead of the year ending with 30-year mortgage rates at 5% as many had projected, it wound up at an average of 3.8%…” Now, although some industry leaders (like the Mortgage Bankers Association) again expect mortgage interest rates to end 2015 at around 5%, most forecasts “now come with more sheepish comments about clouded crystal balls.” And The Times also acknowledges that some observers think rates could stay low, or even decline. “I’ve been wrong about fixed mortgage rates all year,” the chief economist for Moody’s Analytics is quoted as having grumbled. Now “he wouldn’t be surprised if fixed mortgage rates are near 4.5% at the end of 2015.” With this newly-voiced uncertainty about future rises, coupled with last year’s rates refusing to budge from the familiar comfort of basement levels, it would hardly be surprising if most folks have simply adjusted to today’s Las Vegas mortgage interest rates—and allowed their own real estate planning to proceed accordingly. If so, that’s likely to become a real forehead-slapper when they look back on it…possibly in the near future. Low mortgage interest rates in Las Vegas are in actuality a rare gift: a true windfall for those able to capitalize on them. If you are contemplating buying or selling an Las Vegas home anytime in the future, I do hope you’ll give me a call to discuss today’s market—and the opportunities that are here (and right now). As we know from our playground experiences, once you find yourself at the bottom of the slide, sooner or later you’ll be climbing up that ladder once more!
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