As you schlep your ski gear to your favorite Park City, UT resort you may think how much easier life would be if you had your own vacation home in Park City, UT. An estimated 1.13 million vacation homes were sold in the U.S. last year, the highest number since the National Association of Realtors began collecting the data in 2003. And vacation home sales made up 21 percent of residential transactions in 2014. Here are several things to consider when looking at vacation homes.
- Can you afford it? The most important question as you do not want to burden yourself financially with the purchase of a vacation home.
- Know all the rules. Not all homes can be used as rental property. Homeowner or condo associations may set rules for rentals, as may cities.
- Calculate all the costs. The actual purchase price is only part of what you will need to spend. You will also have to pay utilities, HOA or condo fees, property taxes, insurance and the cost of furnishing a new home down to the spoons and forks. You may also need or want skis, snowboards, kayaks, water toys or other gear to take advantage of all that Park City, UT has to offer.
- Calculate your return on investment. If owning a Park City, UT vacation home is part of your overall investment strategy, make sure it’s a good move. Estimate returns and weigh them against other uses of the same money.
- Expect to pay taxes. Rental income is taxable on state and federal returns, though most vacation homeowners won’t earn enough after expenses to face a significant tax liability.