Resort Homes…. Vacation fun? Tax-saving deduction? Investment opportunity? first-time buyers’? Yes! While you may think of vacation homes in great resort locations as something for the rich and famous, there are many opportunities for the average southern California homebuyer.

The first purpose of a vacation home…the family fun…is obvious, but did you know that a second home has all of the same tax-saving benefits of your primary home - all of your interest payments, points and property taxes are tax deductible. Lenders are financing mortgages on these homes with similar rates and programs as well…including interest-only and 100% finance options. If you are still paying income taxes and already own a home, you might want to consider enhancing your quality of life and live income tax free.

The local resort areas of Southern California have some wonderful properties that would be good investments. What about a Palm Desert, CA. condo in a gated golf course community for $225,000? Financed with a 30-year fixed rate of 6%, you would have a monthly payment just around $1025/month. Nightly rentals in Palm Desert average between $100-250 per night. Or consider a quiet mountain cabin nestled in the trees of Lake Arrowhead, CA. where you can earn $1000-1500 per week during holidays and summers. Additionally, there are local property managers Lake Arrowhead who can arrange everything from bookings to house cleaning to any routine maintenance…. passive income with limited involvement.

What about the last idea….first-time buyers? All the advantages already listed apply to you! When I was much younger, my husband and I wanted to buy a home in South Orange County. We found that our monthly budget was not going to be able to handle the mortgage for a single-family home in the cities we wanted to live in. We decided to use the same monthly amount and split it between 2 homes…a rental house in Mission Viejo that suited our needs and a vacation cabin in Lake Arrowhead. We knew if we ever needed to, we could rent the cabin out to either completely cover its cost or even provide us income. But what it did do was allow us to enter the housing market and begin to reap the benefits of tax deductions and appreciation…plus it was fun!

If your job skills are “portable” you might also consider living year-round in one of our resort communities. For instance, there are many mountain communities (ie: Lake Arrowhead) , which are a short 20-minute drive to San Bernardino or downtown Riverside. The desert resorts (ie: Palm Desert) also have many employment opportunities. In these areas a single-family house with 2500 square feet and a nice sized lot would cost well under $500,000. When were the last time home buyers saw those prices?

Finally, remember that there are many financing options available to help you in this price range. A FHA mortgage for instance requires only a 3% down payment, and the seller can pay for most of your closing costs. The 3% can be borrowed and credit requirements are much looser as well. There are even programs in California, which can help with the down payment. Since these are not considered “Jumbo” loans, you will find lower interest rates and greater flexibility in payments and options.

Regardless of the reason you decide to purchase a home in one of our resort areas, you and your family will reap the reward for years. Heirloom properties that can be handed down throughout the generations are not only for the rich. As we’ve seen, you can be enjoying this summer on the lake or this winter in the desert using just your current income and budget.

If you would like us to email you a list of homes for sale in Lake Arrowhead or Palm Desert, just contact Karen Fiddler, of the OC Realty Group at: 949-510-2395 or email @:  KarenFiddler@Hotmail.com

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