Home Improvement for Women

Buyer’s delight 

Sick of spending all that money on a summer rental? Buying a summer home could be one of the best investments you’ll ever make. It was for me — not on only do I love my weekend place in the Hamptons and think of it as my true home (even though I spend most of my week living and working in Manhattan), but the property has also appreciated a lot in the past few years.  A vacation place can be a great investment. In the right location your house will increase in value over time, and a resale can be very profitable. And you can rent your home out for a few week or months each year and it can an actually pay for itself. (When I bought my first home in the he fabled beach community, it was still not affordable for me, so II rented it out as soon as I closed to pay for the he mortgage.) 

If you’re just starting out and have limited funds, established trendy communities like the Hamptons, Martha’s Vineyard, Nantucket and Miami Beach might be out of your price range. But that doesn’t mean you can’t find a fabulous location elsewhere. The following are near New York City, and are also close to more expensive towns. That means the  prices in these areas will likely continue to rise.  

New York State: Your best bet is to head for the hills, like the Village age of Catskill (Greene County), Kingston on (Ulster County) and Narrowsburg (Sullivan County). ). Real-estate agents in the area say all three have strong summer and fallrental markets. 

Pennsylvania: This is state has a much lower property-tax rate than New Jersey, and towns along Delaware are just as beautiful as the ones across the Hudson. Pike County, for example, is one of the fastest-growing areas in the state, due to its proximity to New York, its fabulous natural resources and its high quality housing stock. Take a tour our of Milford (Pike County), ) Honesdale and Hawley (Wayne County).

 New England: Some towns in the picturesque  Berkshire Hills might be out of reach, but you can still find great deals in others — check out Berkshire County, where you’ll find the towns of Lee, Becket and Otis. The drive is beautiful, and there’s plenty to do and see   once you’re there: Jacob’s Pillow Dance Company, Tanglewood, the Berkshire Theatre Festival, the Norman an Rockwell Museum and Laurel Lake are just a few.

Here are some other things to keep in mind when searching for that perfect second home: 

1.     When assessing potential location, look at the surrounding area. Cute antique shops, upscale restaurants, gourmet food emporiums and well maintained public gardens and  parks are sure signs of a vibrant community. 

2.     Your vacation home should be easy to get to either by car or plane. You want to spend the weekend at your house, not getting there. Even if your dream pad has to be in Florida, it should atleast be fairly accessible to an airport.  

 3.     The area should have an active rental market. (Ask your real -estate agent about it when you’re looking for places to buy.) If  rentals have been on an “in-season on”  upswing, there’s a good chance there here will be a market for your house. Also, a good rental al history increases the resale value of a house. 

 4.     The home should be low-maintenance. If you love to garden, go ahead and buy a house that sits on some land but be honest with yourself — how much downtime do you really want to spend doing household chores? Look for easy-to-care-for siding and simple landscaping.

If I can buy a house, so can you! 

 Empower Yourself!

If I Can Do It So Can You!

Barbara K

Preparing to Rent Your Home 

If you have taken the plunge and bought a second home you can help pay for it by renting it out for the short term, during high seasons (like summer and fall). While it is true that you might not be able to enjoy the house during prime periods for the first few years of ownership, the rental income can certainly add to your bottom line, help pay the mortgage and increase the overall value of your history. (now you will have a rental history) That’s what I did when I bought my first house in the Hamptons (read about it in my book Invest in Your Nest). I could not have afforded that house if I had not rented it out during the summer.

 

Here are a few things you should keep in mind. First of all, check with your community, owner’s association to make sure renting your place out to more than one family living in a house is allowed. ( that is more of a share situation common with Hampton rentals.

Second, finding renters takes time out of your busy schedule. Do you really want to be fielding phone calls at work from Craig’s List ads? I don’t. Hire a local real estate agent, one who has a track record with rental properties and who has a screening procedure in place. He or she can also help you set the monthly or seasonal rate.

 Check with your tax pro about the income implications from renting out your place.  If you’re simply planning on having a couple of friends take it over for a couple of weeks you probably don’t have to report the money you make…but you also cannot deduct any expenses related to it. So if your best friend’s summer fling boyfriend breaks a window you can try to get him to pay (don’t bet on it) or eat the repair costs yourself (more likely).  If you plan on making regular rental income part of your overall financial plan, and want to let the house for the a good part of the summer and fall, then you must report the income – but you can take deductions related to repairs and maintenance.   Typically the entire summer rental income is paid in advance by the renters . Also, the renters pay for the maintenance of the house including landscaping,cleaning, pool etc. In addition, make sure that all utility bills are changed to the renters name.  You don’t want to get stuck at the end of the summer paying a huge electric bill for the pool heater! The security deposits are usually equal to 10% of the total rental cost. This security deposit will cover any unforeseen damage to your home . Make sure that the Rental contracts include a provision that says that the renter pays for any damage to your home.  Finally, “dress” your home with simple but sturdy furnishings – that’s what places like  K-Mart,  Target, and Wal-Mart are for. Futons and sturdy rocking chairs for the living rooms, and a table with four chairs for the dining room are fine. Twin and double beds, nightstands, and a chest of drawers for each bedroom are perfect.  Provide a set of simple white china and inexpensive flatware, and a basic set of pots and pans for the kitchen. Stock the linen closet with sheets and towels, but recommend that your tenants bring their own beach towels.

For more advice log on to my website at www.barbarak.com and remember… 

 If I can do it so can you!

Empower Yourself,

Barbara K