There are a few steps that you should take before you start the process of buying Breckenridge real estate, and the more time and effort you spend on preparation the higher the chance that you will find the exact home that you want. One of the first things that you need to do before buying Breckenridge real estate as a second home is to save up as much cash as possible. First homes are expensive, and second homes will be expensive as well, and you will need to have some savings outside of your standard emergency fund to cover the unexpected costs of second home ownership.
Reduce your debt as much as possible
You will want to pay down all forms of debt before you buy Breckenridge real estate as a second home. The debt that you will want to pay down includes your first mortgage, student loan debt, car debt and credit card debt as well as personal loans or other loans that you may have. If you have a high available credit limit combined with low or zero balances on your credit, you will be much more likely to quality for a very good loan. Combine that with any saved cash that you have, and your second home purchase will go very smoothly and you won’t spend that much money on financing or other costs when you purchase a home from the available Breckenridge real estate.
Make a list of all of your potential expenses
You should make a brief list of all of the potential expenses that you may incur with your second home purchase and after the purchase. These expenses can include property taxes, utilities, maintenance and upkeep expenses, insurance, property management and other expenses. A realtor at Colorado Mountain Real Estate can help you determine what your specific expenses might be based on the type of Breckenridge real estate that are you are interested in. Luxury Breckenridge real estate with a high purchase price will come with higher maintenance costs and other expenses, so even if you have the budget to make a down payment and qualify for a luxury second home you will need some extra cash reserves.
Think about renting your Breckenridge real estate purchase
Renting your Breckenridge real estate purchase can be a great idea to offset your home ownership costs, and you can even stay in your home for 14 days or 10 percent of the days that it is rented out while still enjoying the tax deductions and benefits that come from owning an investment property. The subject of tax savings can be somewhat complicated when it comes to a vacation home, and a realtor at Colorado Mountain Real Estate can explain some of the basics to you, but there are dozens of ways that you can save money on your maintenance and other costs when your home qualifies as a full-time rental. One interesting statistic is that half of the people who own Breckenridge real estate and other vacation homes are able to cover 75% or more of their mortgage from their rental income, and this can be a great incentive to structure your second home as a full time rental.