Beware the pickpocket
Vacation rentals are not only getting the attention from savvy investors who see a profitable business opportunity, but also from the government, who sees “bigger pockets” to tax. The State Legislature was considering quadrupling the property tax on vacation rental properties in order to fund a budget shortfall. They would do this by designating these homes as commercial property rather than residential. Fortunately, this idea was nixed, but not for the right reason. It was nixed because it wouldn’t take effect quickly enough, not because it was a bad idea that would open up a can of worms. That means it’s not completely ruled out and could come up again. If you do vacation rentals, remember that complying with local rules and paying your taxes gives you a bigger voice with government, and they need your input.
HOT market, even after the fire
Nobody likes wildfires. For people who live in the mountains this is a constant concern. Even so, people are willing to take the risk in order to live so close to nature, even if it was recently scorched by a fire. A recent study found that real estate prices around burned areas recovered within just a few years. As a real estate investor, this gets my attention. I’m thinking, a good time to buy might be 0-2 years after a fire when the prices have come down. You could potentially ride the appreciation up while watching the forest regrow.
QUOTE OF THE WEEK
“A true friend is one who overlooks your failures and tolerates your successes.“
See you soon,