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How your home in Breckenridge can be a Great Investment

Posted by Breckenridge Associates Real Estate on Friday, November 3rd, 2017 at 4:09pm.

Let me count the ways. 

  1. Lifestyle. Invest in you. There exist any number of studies showing both the immediate health benefits of an active lifestyle, and of spending time in nature. In our opinion there is just no better place on the planet for ripping single track trails on your bike, making powder turns on your planks, hitting high altitude assisted golf shots under the gaze of majestic peaks, or just contemplating nature. They may call us hedonists, but we consistently rank among the healthiest populations in the country. Health is wealth.

  2. Appreciation. Because of our fortunate position, sitting in the midst of four world-class resorts, ringed by national forest, a short drive from the richly resourced, fast growing and filled-with-recreation-enthusiasts metro Denver area, under 2 hours from an international airport, with great winter snow under mostly sunny skies, legendary summer weather, and award winning arts districts- Summit County is where many people want to be. Supply and demand.

  3. Leverage. Your appreciation is on the entire value of the home. If you take a conventional mortgage, and put 20% down, you are basically using your 20% down payment to make gains on 100% of the value. This is leverage. You can also use leverage to eventually kill PMI, or Private Mortgage Insurance- as required on loans that have a greater than 80% loan to value (LTV) ratio. Any loan with less than a 20% down payment will have a PMI requirement.  When the appreciation of the home changes the LTV ratio, you can opt to refi and reduce your payment by the amount of the PMI. In this scenario, you are using even more leverage. It’s also imaginary money until you sell or refinance or borrow against it. There is always risk, but this is a major component of wealth creation. A mortgage professional can walk you through all the options, and we have a stable of trusted partners we’d be happy to recommend.

  4. Rental Income. See the above list. People like to visit us, and they all need a place to stay. Be on the supply side! From long term, seasonal, or vacation rentals there are plenty of opportunities to let other people gladly subsidize your monthly expenses. Local management companies can make the experience completely turnkey, with fluffy towels and groceries waiting for you upon your arrival for personal use, while sites like VRBO and Airbnb allow you to create and hands-on manage your own rental listings.

  5. Tax advantages. Talk to your accountant about this one, but your mortgage interest could be a tax write off.

  6. Be a hero! Everyone likes to have a friend with a ski house! Imagine your social capital.

 Contact a Broker/Partner at Breckenridge Associates Real Estate to get into a ski vacation home before the ski season is in full swing!

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