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What Your Money Can Buy

by Allison Simson & Joyce Nenninger
Spectacular lake and mountain views in Dillon
 
Rarely available, highly desired single family home with breathtaking views of Lake Dillon. This home located at 229 Tenderfoot Street in Dillon sits on a half an acre. It’s an easy walk to the lake, bike/pedestrian path, and town of Dillon.
 
 There was a recent, extensive remodel to the exterior that adds to the charm of this mountain home. You’ll find room for family and friends with 2200 square feet of living space on three levels. There are four bedrooms and three baths, a garage and 2 car carport. The central hub of the home is the living room, which has oversized windows to sit back and enjoy the view. Just off the living room is the kitchen with a dining area, master bedroom and an additional guest bedroom. Up a spiral staircase is a large loft which can be used as a bedroom, office or game room. Included in the square footage, on the lower level, is a lock-off studio with its own kitchen, bath and living/bedroom room area.
229 Tenderfoot Street has curb appeal and charm that’s hard to find at this price; $699,000.00. 
 
Meet Lynn Sustad, Kelie Gray and Meta Winn, the Buyer Specialist Team at Summit Real Estate-The Simson / Nenninger Team. Devoted to working only with Buyers, these Specialists tour hundreds of homes and commit to having the most comprehensive knowledge in the market. A member of the Buyer Specialist Team can be reached at (800) 262.8442 or (970) 468.6800, www.SummitRealEstate.com or email us at [email protected]

 

 

4 Reasons for Seniors to Rent Their Vacation Properties

by Allison Simson & Joyce Nenninger
4 Reasons for Seniors to Rent Their Vacation Properties
RISMEDIA, August 14, 2008-It seemed like a great idea twenty years ago-you’d buy that condo in Frisco, vacation there as often as possible, then someday sell your primary residence and spend your Golden Years basking on the slopes. Now, “someday” is here and-lo and behold-you’ve changed your mind. You’d hate to sell your vacation getaway, but keeping up two homes has gotten too pricey for comfort. Is there a solution?”Absolutely yes,” says Christine Karpinski, author of How to Rent Vacation Properties by Owner, 2nd Edition: The Complete Guide to Buy, Manage, Furnish, Rent, Maintain and Advertise Your Vacation Rental Investment. “Renting out your vacation home allows you to have your cake and eat it, too. And the good news is, it’s easy to do it yourself-not to mention surprisingly lucrative.”
If you’re a second homeowner, Karpinski offers five reasons why you might consider renting out your vacation home:
1. Circumstances have changed since you made your retirement plans. Maybe grandchildren have arrived on the scene and you can’t bear the thought of moving hundreds of miles away from them. Or your parents are in poor health and need you nearby. Or your spouse has passed away and retiring in the Mountains was his idea, not yours. Regardless of specifics, your life bears no resemblance to what you thought it would look like back when you made your retirement plans.
“Life rarely turns out to look like we thought it was going to look,” notes Karpinski. “That’s okay. Some of the happiest, most successful people I’ve met during my years working in this field never dreamed they would rent out their vacation home, and yet once they tried it they love doing it. It pays to be flexible and keep your options open.”
2. You’ve suddenly realized there’s no place like home. Maybe there are no dramatic life circumstances keeping you from moving to your “dream destination.” Maybe you’ve simply changed your mind. You’ve decided you like being near your friends, you don’t want to leave your church or synagogue, and your Tuesday lunch with “the girls” or Thursday Bridge night with “the guys” is a tradition you just don’t want to give up. Renting your second home out during the time you are not staying there makes it financially feasible to keep both homes.
3. You’ve decided to “retire” from retirement. It is not unusual for people to test-drive retirement and find that it’s just not for them. Work can provide many rich rewards-structure, social interaction, mental stimulation, a sense of purpose, and so forth-that people keenly miss when they retire. And when they discover that quitting “the rat race” isn’t quite what they thought it would be, more and more people are opting to return to the workplace. And (let’s be honest), sometimes people simply can’t afford to retire.
“When people decide to postpone retirement, they may also postpone moving to their retirement home,” says Karpinski. “Even if they do retire and then rejoin the workforce either full-time or part-time, they may not want to live in the city they associate with retirement. It’s a psychological thing. And so, in these cases, it’s better to keep the vacation home a vacation home. Renting it out allows them to do that.”
4. Your fixed income hasn’t kept up with your lifestyle. Admit it. Even when you’re happy to give up the daily grind of your job, losing the paycheck that comes with it can be pretty painful. Factor in inflation, rising taxes, and unexpected “new” expenses, and you may find that what seemed like a manageable cost of living five years ago doesn’t seem that way anymore. Your second home, even if it’s paid for, may start looking like a liability due to property taxes, homeowner’s association dues, and maintenance costs. Not if you rent it out, says Karpinski. Then it becomes a source of new income.
“If you have a mortgage on your second home, renting it out only seventeen weeks will cover your mortgage payments for an entire year,” she says. “If it’s paid for free and clear, only five off-week rentals will cover costs like bills for your phone, power, cable, and association dues. All the rest is profit! When you consider that in some markets you can earn as much as $20K-30K in rental revenue per year from your vacation home, you’re looking at a nice ‘raise’ for yourself.”
And here’s a surprise: people who try renting by owner often end up liking it so much that they pour their earnings into another vacation home. In fact, a recent survey by the National Association of Realtors® found that some 55% of vacation home buyers said they were likely to purchase another property within two years.
“Who knows-becoming a vacation rental property owner may become your encore career,” says Karpinski. “Buying and renting out vacation homes is addictive. I’ve done this for years and I can’t imagine ever not doing it. It’s more than a way to make money. It’s a richly rewarding way of life-at any age.”

For answers to your real estate questions, call Allison at 970-468-6800. Email - [email protected]. Allison is a long time local in Summit County. Summit Real Estate – The Simson/Nenninger Team is located at the Dillon Ridge Marketplace. Allison’s long-time residency and years of real estate experience can help you make the most of any buying or selling situation. She’s a Certified Residential Specialist (CRS), the highest designation awarded to a Realtor in the residential sales field. Her philosophy is simple, whether buying or selling, she understands that the most important real estate transaction is yours.  Want to know the value of your Summit County property? Visit www.SummitHomeValue.com   

National Real Estate market and how does that affect us here in Summit County, Colorado?

by Allison Simson & Joyce Nenninger
Question: Allison, We’re considering buying an investment condo in Frisco and wonder what the National Association of Realtors has to say about the National Real Estate market and how does that affect us here in Summit County, Colorado?
Answer: If you’re worried about investing in a sluggish real estate market, relax. Recent reports indicate housing is on the rebound. Last week the National Association of Realtors® reported that, “The Pending Home Sales Index (PHSI), a forward-looking indicator based on contracts signed in August, jumped 7.4%…and is 8.8 percent higher than August 2007.”
Other encouraging points made in the NAR article:
- Pending home sales are up strongly in vacation home-heavy areas like Arizona and Florida.
- The PHSI jumped 18.4% in August. It’s now 37.8% above what it was a year ago.
- Home prices are projected to increase 2 to 3% next year.
According to Lawrence Yun, NAR chief economist: “Home buyers in July were hampered by overly stringent lending criteria in the months before the government takeover of Fannie and Freddie,” he said. “August shows some unleashing of pent-up demand before the credit crisis accelerated in September.”
“If you’re anxious about your ROI, these statistics should put your mind at ease,” notes Christin Karpinski. “But always remember to think of real estate as a long-term investment. It doesn’t really matter whether the market starts picking up steam right away. Your home will appreciate slowly over the years, and that’s all that really matters.”
If you choose to rent your property out, you can use your rental income to offset your mortgage. (And then some!) Karpinski is a huge proponent of renting by owner (rather than using a property management company). Rent it out only seventeen weeks out of the year and your new vacation home could pay for itself. When your monthly mortgage payment is less than or equal to one peak week rental, twelve weeks of rental will cover your mortgage payments for the entire year. Other costs, including bills for your phone, power, cable, and association dues, may be paid out of your earnings from approximately five off-week rentals.
“Most owners tell me that their average weekly rate is around $1,500 to $1,600 and that their property is rented out twenty weeks or more per year,” says Karpinski. “Do the math and you’ll see that that comes out to around $30,000 or more in rental revenue each year. And here’s something interesting: While most people admit that the cost savings is the primary reason they rent by owner, they often add that the sense of control it gives them is equally important. They feel they can take better care of their property than anyone else and like to know who is renting their homes.”
It’s never been easier to market rental properties. Websites like HomeAway.com have made it easy and inexpensive for homeowners to list their properties. Plus, says Karpinski, as more and more people realize the benefits of staying in vacation homes rather than hotels, the pool of potential guests grows by leaps and bounds.
“There are lots of markets for renting vacation homes besides the usual leisure traveler,” notes Karpinski. “Business travelers are one example. If you’re a homeowner, you can approach local businesses and invite them to have clients and associates stay at your vacation home instead of at a hotel. Just make sure your house is properly equipped and you might find yourself with a self-replenishing stream of guests.”
If you’re rushing out the door to head to the bank right now, Karpinski doesn’t blame you. (She owns several vacation homes herself and knows what a fantastic investment they can be.) But she does want you to temper your enthusiasm with a word or two of caution.
“It’s not as easy to get a mortgage as it once was,” she warns. “But if you have strong credit, you can find a lender who’ll work with you. Also, don’t rush into a decision. You may be thinking, ‘Well, if I do this before the end of the year, I can get a nice tax write-off.’ That’s true. But it’s more important to take your time, make sure the property is right for you, and make sure the rent-by-owner lifestyle is right for you. It’s not for everyone-but if you know what you’re getting into, you may well decide it’s the best financial decision you could make.”
 
For answers to your real estate questions, call Allison at 970-468-6800. Email - [email protected]. Allison is a long time local in Summit County. Summit Real Estate – The Simson/Nenninger Team is located at the Dillon Ridge Marketplace. Allison’s long-time residency and years of real estate experience can help you make the most of any buying or selling situation. She’s a Certified Residential Specialist (CRS), the highest designation awarded to a Realtor in the residential sales field. Her philosophy is simple, whether buying or selling, she understands that the most important real estate transaction is yours.  Want to know the value of your Summit County property? Visit www.SummitHomeValue.com   

5 Reasons Why the Vacation Home Rental Market Is Holding Strong…Even in our Weak Economy

by Allison Simson & Joyce Nenninger
5 Reasons Why the Vacation Home Rental Market Is Holding Strong…Even in our Weak Economy
1. It’s easy for consumers want to rent, to find information on vacation homes. By visiting respectable websites travelers can quickly find the vacation home that’s right for them. HomeAway’s network of vacation rentals includes over 300,000 properties all over the world, making it possible for almost anyone to find one within a two- to three-hour driving distance from their home.
2. Vacation homes tend to be less expensive than hotel rooms. This is especially true if you’re traveling with extended family or a group of friends. HomeAway recently contrasted a three-bedroom vacation rental private condo in Orlando with a popular three-star hotel and found that the condo was cheaper by more than $1,700! “That’s a big difference, and in a tenuous economy it seems even bigger,” notes Karpinski.
3. When airfare gets expensive, people start taking road trips instead. Even with gas prices relatively high, it’s still far cheaper to drive a couple hundred miles to your mountain condo than to fly to some lavish vacation destination. “Even with the bad economy, people need to take vacations In fact, psychologically, they may need to get away more than ever. A fairly inexpensive stay in a nearby vacation home is the perfect solution.
4. The weak dollar makes U.S. tourist destinations attractive to European travelers, whose currency is still strong. “On my recent trip to Hawaii, I noticed a lot of German tourists,” notes Karpinski. “And when I speak to many of the vacation homeowners I work with, they confirm that they’ve encountered a surprisingly high number of European travelers lately.”
5. Business travelers still need a place to stay. When corporations must meet with business associates-who increasingly hail from overseas-they need good lodging solutions. Enter the vacation home. More and more executives are putting their guests up in vacation homes instead of cramped, impersonal hotel rooms. It’s a far more comfortable option; plus many companies work out deals with homeowners whereby they can get ‘volume discounts.’ It’s a win/win for all parties involved.

 
For answers to your real estate questions, call Allison at 970-468-6800. Email - [email protected]. Allison is a long time local in Summit County. Summit Real Estate – The Simson/Nenninger Team is located at the Dillon Ridge Marketplace. Allison’s long-time residency and years of real estate experience can help you make the most of any buying or selling situation. She’s a Certified Residential Specialist (CRS), the highest designation awarded to a Realtor in the residential sales field. Her philosophy is simple, whether buying or selling, she understands that the most important real estate transaction is yours.  Want to know the value of your Summit County property? Visit www.SummitHomeValue.com   

A Wall Street Alternative: 5 Timely Reasons to Invest in Vacation Property

by Allison Simson & Joyce Nenninger
Question: Allison, with the stock market down, the credit crunch and the financial mess the country is in, our level of investing confidence has dropped really low and we don’t feel particularly good about playing the market right now. What recommendations do you have regarding investing right now?
Answer: That’s a good question…and my answer, of course, is Real Estate! With inventory in Summit County up, and prices coming down, we are seeing conditions in our market that we haven’t seen in a long time (I’ve been a Realtor here in Summit County for 15 years and I’ve never seen it like this…) Christine Karpinski, the author of “How to Rent Vacation Properties by Owner, 2nd Edition: The Complete Guide to Buy, Manage, Furnish, Rent, Maintain and Advertise Your Vacation Rental Investment,  has a suggestion: Instead of pouring your money into Wall Street, why not consider Ocean Boulevard or Mountainside Drive?
“A vacation home can be a remarkably good investment right now,” says Karpinski. “Stock market woes have always pushed people to look for alternate investments, and real estate is a consistent stronghold,” she says. “Yes, home values are down right now but they have always rebounded. I wouldn’t recommend buying a second home with the expectation of flipping it for a quick buck, but if you hang onto it for a while-and better still, turn it into a vacation rental property-you’ll make a nice profit.”
So what makes buying a vacation home so attractive right now? Karpinski explains:
There are plenty of great deals to be had. Thanks to the aftermath of the real estate bubble, home prices are down right now across the board. That means in many vacation markets, you can pick up a beach condo or a mountain property at a decent price. And that means that if you’ve been kicking yourself for not buying a vacation home back before prices escalated beyond all reason, you’ve got a reprieve.
“Housing bubble or no housing bubble, you’re not going to get bargain basement prices on, say, a ski-in, ski-out condo right on the slopes-but if you’re willing to buy a few rows back, you’ll likely find that prices have fallen,” notes Karpinski. “Because houses aren’t flying off the shelf, there’s less pressure on you to make a quick decision. You can afford to take your time, do your research, and refine your plan.”
Interest rates are attractive right now. Recently, the Federal Reserve cut interest rates by half a percentage point in an effort to shore up America’s faltering economy. And rates have been reasonably low for awhile, following earlier rate cuts toward the beginning of the year. That’s good news for anyone (anyone with good credit, that is) who’s in the market for a mortgage.
“Add the lower interest rates to the lower housing prices, and it’s clear that now is the time to buy,” says Karpinski. “Of course, for the sake of our nation’s economy, we want the real estate market to pick up, but from an individual buyer’s perspective, the combination of lots of properties for sale, lower prices, and falling interest rates is hard to beat.”
For answers to your real estate questions, call Allison at 970-468-6800. Email - [email protected]. Allison is a long time local in Summit County. Summit Real Estate – The Simson/Nenninger Team is located at the Dillon Ridge Marketplace. Allison’s long-time residency and years of real estate experience can help you make the most of any buying or selling situation. She’s a Certified Residential Specialist (CRS), the highest designation awarded to a Realtor in the residential sales field. Her philosophy is simple, whether buying or selling, she understands that the most important real estate transaction is yours.  Want to know the value of your Summit County property? Visit www.SummitHomeValue.com   

Will a $700 Billion Bailout Do the Trick?

by Allison Simson & Joyce Nenninger
Will a $700 Billion Bailout Do the Trick?
 
I recently received this as an email from a friend and fellow “Howard Brinton Star Power Star” He’s a person I respect and this article makes as much sense to me as anything else I’ve read or heard lately (although I do acknowledge my Real Estate bias!) If nothing else, it made me think in a different way about our current situation. I hope you enjoy this, and if you have any comments or further questions, let me know. I am a firm believer that the steps the gov’t is taking will help and even though it is a bit of a bitter pill to swallow, this will avert a meltdown of the economy, and once that “good news” hits the streets and starts to take effect, some of the fear we are all experiencing will dissipate.
By Jeff Scislow
Our nation is at an interesting juncture. You’ve heard it over and over in the past few weeks: Our economy and banking system is under incredible pressure; one of a serious nature.
 
The mortgages which were written between 2004 and 2006 paved the way for the collapse in real estate prices, which in turn has been pulling down all other areas of the U.S. economy. Currently there are over 1 million foreclosures across America. The frightening fact is that there are more than 6 million mortgages that are 30 days or more in arrears! This is potentially more serious than anything we've seen yet.
 
The U.S. Government's $700 billion dollar "bail out" plan is designed to alleviate the pressure on the banking system which is being hurt by bad mortgage debt.
Due to the fact that our government has been way too slow to act, this plan is essential, but it is not the solution in my opinion.
 
I currently have a proposal that has been submitted to the U.S. Treasury Department in Washington D.C. (Henry Paulson's office). In my opinion, the primary component to the potentially catastrophic problem is the fact that "housing prices" have fallen dramatically and could continue to fall across America. Unless the prices of houses firm up and stop falling, we will continue to see more foreclosures; the result of which, is our entire economy could be swept away right along with the values of our nation's real estate.
 
So what is the solution?
 
The inventory levels of houses "for sale" are so incredibly high. The inventory levels MUST be lowered. The best way to do this is to provide extremely low interest rates (for a limited period of time) to entice people to buy houses now, in the midst of the crisis. I propose that instead of "bailing out" the banks as a primary "fix", that the government subsidize the "purchase of real estate" by way of buying down the interest rates to unprecedented levels (i.e. 3.5 to 4.0 percent for 30 yr fixed rates).
 
When one compares the "cost" to the government (and ultimately the tax payers) for the currently proposed "bail out plan" against the cost of a plan that enables citizens to buy real estate at incredibly low interest rates, the cost is higher with the currently proposed "bail out program" in my estimation. In addition, the currently proposed program does not fix the problem, but only provides a temporary band aid.
 
Look at the numbers: A foreclosure costs a bank $70,000 on average. With all the foreclosures taking place in the U.S. the costs are incredibly high! The bailout plan proposed will provide relief to the banks that have lost all this money in foreclosures. Although the proposed "bail out plan" is essential NOW due to the fact that the government did not act quickly enough, it is not the ultimate fix.
 
My proposal involves the buying down of interest rates to enable U.S. citizens the incentive to buy real estate NOW! By buying real estate now (with very low interest rates), several things will happen: 1) inventory levels will drop; 2) as inventory levels drop, price will stop falling; 3) as prices stop falling less people will foreclose on their homes because they see that market values have firmed up and stopped declining; and 4) consumer confidence will begin to return to the marketplace and economy.
 
The cost to the government to subsidize the purchase of an average priced house in the U.S. would run approximately $25,000 (per house). This is much less than the cost of bailing out a bank to the tune of $70,000 per house! The bailing out of banks that are drowning in foreclosures is only a temporary fix, while the injection of cash into a program that entices our citizens to purchase the existing inventory of houses is the kind of program we need to turn the markets around and avoid disaster!
 
Let's go to Las Vegas for a moment. Picture the Hoover Dam. Imagine that the incredible wall of the dam had several leaks. Water was spewing out through the wall in several locations. The current government plan is designed to "patch" the leaks. Is it necessary? YES, absolutely! But it is only a temporary fix! The pressure is mounting up and is too great on the other side of the wall of the dam! The wall is the U.S. economy. The water rising against the wall is the tsunami of foreclosures and increasing housing inventory.
 
So what is the solution? The pressure must be relieved on the "other side of the wall" or it will soon collapse because it has been weakened.
 
To relieve the pressure, distributaries need to be carved out that disperses the water that is now building against the wall of the dam. Once the pressure is relieved from the wall, then repairs can effectively be made to the wall. The pressure can only be relieved by lowering the inventory levels of housing and the foreclosures that continue to mount. It is a fact, the level of foreclosures can be greatly reduced by lowering the current supply of homes available for sale; and the current supply of homes can be greatly reduced by providing U.S. citizens substantially lower interest rates in order to step up and buy one of these properties today.
 
A property financed at 3.5 to 4.0 percent will provide a very affordable house payment for any buyer and/or a wonderful cash flow for any real estate investor. Houses purchased with rates as low as these will stay off the market for many years; they will not be "flipped" - this is further good news for the housing market well into the future. Such program is not a bailout, but a partnership between government and the private sector. It is politically correct in an election year!
 
Now is the time for the U.S. Government to take action; because tomorrow could be too late!
 
Jeff Scislow
 
For answers to your real estate questions, call Allison at 970-468-6800. Email - [email protected]. Allison is a long time local in Summit County. Summit Real Estate – The Simson/Nenninger Team is located at the Dillon Ridge Marketplace. Allison’s long-time residency and years of real estate experience can help you make the most of any buying or selling situation. She’s a Certified Residential Specialist (CRS), the highest designation awarded to a Realtor in the residential sales field. Her philosophy is simple, whether buying or selling, she understands that the most important real estate transaction is yours.  Want to know the value of your Summit County property? Visit www.SummitHomeValue.com   

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Summit Real Estate
The Bright Choice
330 Dillon Ridge Way, Suite 10
Dillon CO 80435
970-468-6800
800-262-8442
Fax: 970-468-2195

Allison Simson, Owner/Broker, is a licensed Colorado Real Estate Broker