Earning Rental Income from Your Vacation Property

July 25th, 2011

Grande Villas Indian Beach Real EstateOwners and prospective buyers of vacation homes may wish to consider the advantages of earning rental income. If your property at Grande Villas or elsewhere is going to sit unoccupied for long stretches between your stays, turning it into a rental can be a smart way to put your investment to work. While you may not quite manage to make the vacation home pay for itself as some real estate investors would dream of, the extra income and tax benefits can represent a very attractive proposition.

The key consideration before getting into the rental game is the amount of time you wish to rent out your property. If you rent it for less than 15 days in a year, whatever income you collect from it is completely tax-free. This can be an appealing option for those only interested in short-term arrangements, and it can pay off handsomely if the second home is located near a popular attraction (like an annual festival or golf tournament) that can command peak rental rates. Of course, if you don’t have to report your rental income, that means you can’t claim any rental-related expenses as deductions.

If you rent your property for 15 or more days a year, then the IRS considers it a rental business and you must report the income. In this case, your costs on the home during rental periods can be deducted as business expenses. As long as you maintain personal use of the property as your vacation home, you can also continue to deduct your mortgage interest and property taxes. That may sound like a win-win, but becoming a landlord carries a lot of responsibilities and liabilities that you should carefully review with your accountant or attorney before jumping in.

Check out these links for further general information:

H&R Block Tax Tips: Owning a Second Home


SmartMoney: Property Taxes on Vacation Homes & Timeshares


Buyers Utopia: Vacation Rental Home Investment Property

 

Benefits of Condo Ownership over Free Standing Vacation Home

July 7th, 2011

Vacation Condo OwnershipTime to Go for a Vacation… Condo!
You’ve made the decision to purchase a vacation property on the Crystal Coast – after all, it’s a great time to buy and, frankly, you deserve it!

Ask the experts and you’ll hear that the proverbial real estate market “ball” is currently in the buyer’s court, so there are more options for you right now than in years past. And with a wide array from which to choose, you may be pondering whether to purchase a condominium or free-standing home.

Well, condos definitely have some no-brainer advantages. For example, because the purpose of a vacation home is for you and your family to relax, the last thing you want to do is deal with the plethora of maintenance issues that come along with a house. And condo-ownership typically comes with the worry-free, maintenance-free living you envision for your second home. Sure, there are fees involved, but sparing yourself the time and hassle of having to do it all yourself can certainly make those homeowners association dues worth the cost. Moreover, many condominium developments offer additional amenities and facilities for your family and guests to enjoy.

For example, Grande Villas at Indian Beach on the Crystal Coast offers owners and guests club-class indulgences, including a state-of-the-art health and fitness center, club lounge, sport and games lounge, poolside restaurant and kids’ club. These extras, which you don’t get with a stand-alone house, all add up to turn your second home into a first-class vacation experience.

It is a wonderful time to buy a vacation home and a condominium is a great choice. So when you’re ready to make your coastal condo purchase, just be sure to go on a fact-finding mission. Check out the financial and operational sides of the development – things like developer strength and financial stability. Also, when you visit the prospective vacation home developments, talk to current owners and ask them for their personal pros and cons of ownership… this can be the most enlightening conversation of all and steer you toward the vacation condo of your dreams!

Grande Villas Owners Weekend

June 30th, 2011
 2nd Annual Owners Weekend Draws a Crowd

Around 35 Grande Villas families gathered for the Owners Weekend Celebration, June 10th. Delicious gourmet food prepared by the popular Carlton’s Cartering and poolside music by 4EverAll kicked off the event weekend Friday night. Owners mixed and mingled while children frolicked in the pool.
 
Friday night "Pool Party"

Grande Villas Residents, Joel & Charlotte Fortune enjoying the Friday night festivities.

Great Weather & Great Company 
The weather was simply spectacular and allowed everyone to enjoy a variety of family friendly outdoor activities on Saturday. A few early birds started their day with a complimentary beach body workout .  Others enjoyed a lazy morning followed by a catered brunch from Carlton’s. The Spinnakers Kids Club offered youngsters the opportunity to try their hand at beach crafts and outdoor activities on the lawn.  Around noon, chefs prepared a low country boil and barbeque luncheon where owners and guests dined poolside and enjoyed more live music.  Saturday night’s activities featured a poolside family movie and popcorn for Spinnakers Kids Camp attendees. 
 
 What a Way to Start the Summer
The event offered owners and guests the opportunity to relax and enjoy the pleasures of the Crystal Coast in a fun and festive atmosphere.   The weekend came to a close on Sunday with a wonderful patio brunch. What a great beginning to another perfect Grande Villas summer.

 

 
 

  

 
 
 
 
 
 

 

 

A Home Away from Home: Make a Smart Investment in Your Family & Your Future

June 2nd, 2011

Kids at the beachLet’s get away!” This is a shared cry of the typical overstressed family, plagued by too many activities and too many hours at work. In the Southeast, a common destination for such an escape is the beach – specifically, the gorgeous beaches of North Carolina. But then there’s the hassle of exactly where to go, where to stay and then making all the arrangements.

So why not get away to your own home away from home? Owning a vacation home is the perfect solution to creating a relaxing haven for your family. And there are few more ideal real estate locations than the still-pristine beaches of North Carolina’s Crystal Coast. From the primary cities of Beaufort, Morehead City, Emerald Isle and Atlantic Beach to the smaller villages like Salter Path, Pine Knoll Shores and Indian Beach, the Crystal Coast offers abundant opportunities for weekend getaways and summers by the beach.

Henry Tanner, a Raleigh resident, is thrilled to own a second home on the Crystal Coast. His wife and two kids spend about half the summer at their coastal condo, with Henry joining them each weekend. According to Henry, “We chose to purchase a vacation home in Carteret County because of its close proximity to Raleigh, its relaxed atmosphere and the fact that it’s not as crowded as other North Carolina beach destinations.”

Because single-family homes are significantly more expensive on the coast when compared to the rest of North Carolina, condominium developments provide the density that allows affordability for many second-home owners like the Tanners. And, of course, a second home can also provide a source of income when not being used by family and friends.

But is coastal real estate a good investment right now? Although economic conditions nationally are impacting real estate values negatively, the Crystal Coast – Carteret County, in particular – has not been nearly as affected as other markets in the region. According to the Triangle Business Journal (8/23/10), data shows the values of coastal homes in Carteret County are projected to grow at a faster rate than those in neighboring counties, with a projected growth of between 16% and 25% by 2015. So the answer to that investment question is definitely a resounding “Yes!”

For residents and visitors alike, the Crystal Coast offers a wide variety of maritime activities, including the unique coastal villages, nature preserves and even pirate hunting. “Our family really enjoys the various day-long excursions to Sand Dollar Island, Shackleford Banks or Cape Lookout,” says Henry. “We are central to so many amazing destinations,” he continues, “but we also love just staying close to home, hanging out on the beach or fishing.” The Tanners also appreciate that although the Crystal Coast isn’t heavily commercialized, there are plenty of exceptional restaurants and shops.

As far as an investment, Henry couldn’t be happier with his second home at the beach. “I consider it paradise,” he reflects, “and seeing my family’s appreciation and love for the Crystal Coast makes this investment worth its weight in gold!”

CNBC.COM – Second Home Market Rebound

March 25th, 2011

WEST PALM BEACH, Fla., Mar 17, 2011 (BUSINESS WIRE) — After several years of negative trends in the real estate industry, a recent market study shows signs of increasing consumer confidence. The third annual Cotton Report polled more than 800 participants on housing preferences, motivating factors, pricing levels and timelines for purchase. The survey included participants from 39 states, as well as Canada, Europe and Latin America. Read more here…