Buying a second home is a huge commitment. If you do choose to put money into a second home, you have to do it right.
For a decision to invest in a second home to make sense, you have to consider:
- Legal issues surrounding being able to rent out the property when you are not around. You don’t want to be handicapped by deed restrictions and condominiums’ or gated communities’ codes and restrictions
- The tax implications of owning the second home
- Whether or not the numbers – income and outgoings – make financial sense
- Your long-term goals and retirement plans
- Financing options available to you
- The state of the community you will be joining
- The soft issues such as the recreational amenities that the neighborhood offers
It is pretty hard to find a place that will tick almost every check box when you consider all these factors. Lake Tahoe could be one of the few exceptions and that makes it one of the best places in the United States to own a second home.
Alvin Steinberg of Living Lake Tahoe, one of the best real estate agents in the area, has the same sentiments as Forbes and Barron’s. Lake Tahoe is indeed one of the best places to buy a second home. Below are some of the reasons why:
It’s Actually a Fun Place to Live
At the very least, you want to buy a second home in a place you will enjoy living. Lake Tahoe offers one of the greatest selections of both active and passive fun things to do.
Because Lake Tahoe is essentially a tourist destination, you will also have access to a lot of touristy amenities such as high-end spas and restaurants. Further, service providers from tour guides to restaurateurs are always at the top of their game because it is their business to make the discerning travelers who visit Lake Tahoe happy.
If you buy a place on the water, you will probably have a private beach. If not, there is a public beach that can comfortably accommodate you when you want a tan.
Lake Tahoe will also afford you an opportunity to go boating, hiking, golfing, and skiing.
One of the Most Tax Friendly States
Very few states have tax requirements as friendly as Nevada’s. In the United States right now, all states except Nevada, Wyoming, South Dakota, and Wyoming will tax you on business income derived from the state.
These four states have no corporate income tax. They also happen to have no personal income taxes alongside Texas, Florida, and Alaska.
If you are looking to reduce your tax bill, having a residence in a place such as Nevada suddenly makes a lot of sense. This is especially true if you are looking for a second home to someday retire in and want your retirement income to be absolutely tax free at the state level.
Property taxes in Nevada are also relatively low. Nevada’s effective property tax rate is just 0.77 percent.
Short-Stay Renters Are Available
You will probably want to rent your second home when you are away to make some money on the side and to cover the expenses of maintaining the home.
Since Lake Tahoe is actually a tourist destination, you can expect to find enough short-stay renters to at least break even.
While the occupancy rate for vacation homes in Lake Tahoe is just 33%, Tahoe’s seasonality of demand ensures that you can make a decent amount of money during the peak seasons when rental prices per night are very high and so cover the losses you may incur during the off-peak seasons.
Safety, Utilities, and Community
Lake Tahoe is an up-market neighborhood and destination that enjoys relative safety and security as well as very reliable utility services.
While Tahoe attracts tourists who come and go, no matter where you choose to live, you will feel a sense of community since there are lots of residents that stay all-year-round and there are established amenities to cater for their needs.
About Living Lake Tahoe
Living Lake Tahoe is a real estate agency based in Incline Village, Nevada. They help people looking to buy, sell, or rent properties in Tahoe navigate the local real estate market and achieve their goals as painlessly as possible. The team is headed by Alvin Steinberg who has over four decades of experience as a real estate agent. Alvin carries a CRS (Certified Residential Specialist) in both California and Nevada.