Santa Fe is often touted as:
“The Best Place to Retire”
“The Best Small Town”
“#1 Place for Business Startup”
“Top city of artists per capita”
“Top Day Trip Destination”
“Best city in the US”
“Top 10 Cities for Art Lovers”
“Best Vacation Spots in the US”
to name a few…..
So it is no surprise that many want to vacation here and put down some roots by buying a vacation home. Here are 4 tips when considering a vacation home in Santa Fe, NM
1. Work with an agent who knows the area.
Living in Santa Fe was always a dream of mine and I am thrilled to call Santa Fe home. After years of experience in the Santa Fe real estate market, I now feel like a local and know the city inside and out. Hiring an experienced agent who knows the area will save you time and money in your search for a vacation home. My knowledge of the area will serve you well when it comes to choosing a home that will fit your biggest Santa Fe property ownership dreams. Buying a second home is a big decision and I thrive on helping folks navigate the home-buying waters.
2. Make sure the location makes for a good rental.
Santa Fe has many neighborhoods and they are all diverse. From the $150k condo to the multi-million dollar ranch, Santa Fe has what you are searching for. If renting your home out while you are not vacationing is something you would like to do then it is paramount to know if the location of your new home is good for renting. Rental income from a second home can be substantial and in some cases pay for your new home, so choose carefully. You will want to ask yourself if the neighborhood is safe. You can look up local crime rates easily enough for Santa Fe which will help you to know if people will want to stay in that area. Another thing to consider is how close the home is to the major Santa Fe activities. For example, if you are close to the Plaza and Canyon Road you may attract many other vacationers looking to stay close to all that Santa Fe has to offer. Lastly, you may want to ask yourself if the neighborhood is pleasing to the eye. Is the environment going to draw people to your rental and want them to return year after year?
3. Learn about the tax implications of a second home
Buying a Santa Fe vacation home can present some tax challenges and complications, so it is best to meet with a local tax professional to discuss this implication before buying a second home. I can help steer you to professionals who can answer these questions for you. You will want to consider property taxes, utilities, homeowners association fees, and other applicable expenses when making your decision to buy. The good news is that generally, the interest on the mortgage of your second home is tax deductible, and rental properties are subject to additional tax breaks. Additionally, you will want to consider a plan for deferring or reducing capital gains upon the sale of your home down the road.
4. Buy under your budget.
In a city like Santa Fe beauty is everywhere you look. From the historic adobes of Canyon Road to the modern southwestern homes in the hills…it’s not difficult to find a home you will love. However, it’s important to use caution and be realistic about your budget before purchasing a vacation home. The reason you go on vacation in the first place is to get rid of stress and relax. If you choose a home that is outside your budget that will add stress and that will defeat the whole purpose of buying a vacation home in the first place. Buying a home under your budget will ensure that you can afford it and have some wiggle room for repairs, remodeling, etc. You can check out the mortgage calculator on my website to help you crunch the numbers. Also, keep in mind that you can always upgrade down the road.
Now that you have some tips tucked away in your mind, let’s explore Santa Fe together and find that perfect vacation home.
