Owning a Vacation Home in Breckenridge CO
Owning a vacation home is a dream for many people, and it’s not hard to see why. A vacation home can provide a personal sanctuary where you can escape the hustle and bustle of daily life and enjoy some much-needed rest and relaxation. Beyond providing a getaway, owning a vacation home can also offer several other benefits, such as rental income, tax advantages, and potential long-term investment opportunities. In this increasingly stressful world, owning a vacation home can be a wise investment in both your mental and financial well-being. Let see why you should choose Breckenridge CO area for your vacation home.
1. Quick and Easy Vacation
Owning a second home in the Breckenridge CO area can provide a convenient and enjoyable vacation destination for you and your family. Avoid the hassle and high expense of booking accommodations every time you want to visit.
If you are visiting the Breckenridge CO area, you are probably here for all the outdoor activities the area has to offer and to live your dream lifestyle. That comes with a lot of gear! Skis, ski boots, snowboards, all the winter clothing. On the other hand in the summer, maybe you want to bike on your favorite mountain bike or enjoy kayaking, paddle boarding, and much more. That’s a lot of gear to travel with. If you are traveling on the plane, then that’s an additional cost each time you fly for your extra luggage. When you own a home here, there is no need on packing heavily or rent. You can leave your items at the house.
Not to mention the perks of having all your plates, cups, kitchen appliances, spices, and favorite snacks stored away, ready for you as you enter the front door.
2.Long Term Appreciation
The average annual appreciation in Summit Count is around 7%. This is the average for the last 30 years. It even spiked to 30% in the last couple of years during and post covid pandemic. If the property is well-maintained and properly managed, it can appreciate in value over time well, potentially providing a source of income or a valuable asset for future generations. Many homeowners purchase a vacation home in the Breckenridge CO area, use it for a couple of years, and sell for the gains on the appreciation.
The popular strategy among the sellers and buyers in the area is the 1031 exchange, which allows you to defer paying taxes on your capital gains. If you are selling a property in another area, you can roll those funds into a purchase here in Breckenridge CO, or when you sell your Summit County CO home.
3. Possible Tax Advanatages
Depending if you are using it strictly as a second home vs. investment property different rules will apply. There are also varying deductions on an investment property that can apply depending on how much you use the property versus how much you rent it out. Some examples are insurance, property taxes, mortgage interest, utilities, housekeeping, repairs.
Please, connect with your tax accountant for individual evaluation.
4. Hot Tourist Spot
Owning a second home in the Breckenridge area provides the benefit of being in a high-demand area with limited supply, and therefore potential for ongoing growth in the local economy and tourism industry which also allows for your home to appreciate quicker in value than non-tourist areas.
5. More Quality Familty Time
Second homes give you the ability to create lasting memories and strengthen family relationships. Having a dedicated space to spend quality time with loved ones, away from the distractions and demands of daily life, can be invaluable. A second home can in Breckenridge offers a variety of recreational activities that may not be available in the primary residence location such as hiking, biking, skiing, river rafting, fly fishing, etc.
