If you’ve visited beautiful Chetek Wisconsin—the City of Lakes—the thought may have crossed your mind to purchase a second, or vacation, home in the area. In fact, many buyers are in the same position as vacation home sales are now at their second highest mark in 10 years!
And while the process of buying another home may seem daunting, Six Lakes Realty has years of experience in helping others do the same and we are here to assist in making your Chetek vacation home dream a reality. Below are five tips for buying a second home in Northwestern Wisconsin this year:
1. Act like a local
Doing your homework on the area and scouting the right location are two of the best steps you can take when purchasing a second home. Talk to the locals, spend some time acting like a local yourself visiting area shops, restaurants, and entertainment, as well as looking at the schools. If you will be purchasing a second home in a given community, you will want to get to know everything about it.
2. Choose the location wisely
It may sound like an obvious step, but before you buy, you will want to identify exactly why you want this second home. Is it for the beach access? According to the National Association of Realtors 2016 Investment and Vacation Home Buyers Survey, 40 percent of vacation home buyers purchase in a beach area. Is it for great fishing, large acreage or woodland views? If you can identify this, your home search will be much simpler for both you and your agent.
3. Work with an experienced agent
With Six Lakes Realty, you can rest assured that our team of experts knows the area. We can provide insight on property values, the best areas for your vacation home and look at comparable properties with you to determine if a certain property is a good investment or if you should continue your search.
4. Be realistic about your budget
When purchasing a second home, be realistic about how much you can afford— especially if you’re already carrying one mortgage. You don’t want to stretch to make payments, so set a number you are comfortable with or you may even want to consider buying under your budget.
5. Go over the in’s and out’s of taxes
Research all aspects of the purchase from utilities to maintenance and of course, property taxes. As a homeowner, you are able to deduct costs like mortgage interest paid on a mortgage of up to $1 million, or $500,000 if married filing separately, on any home loan you hold. Your second mortgage does count toward the $1 million total so long as you use the mortgage to buy, build or improve the property.
Also take into account the tax implications from renting out the home when you are not there. If you rent out the property for 15 days or more during the year, you are required to report the rental income to the IRS. However, you are also able to deduct expenses like utilities, repairs and the like from that income.
Questions about buying a second home in Chetek? Do not hesitate to give Six Lakes Realty a call!
John Flor
Managing Broker
Six Lakes Realty
Office: (715) 924-4806
Email: john@sixlakesrealty.com