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Christie's International Real Estate

Here’s why you should consider buying a second home in Mountain Village, CO


Imagine waking up every morning to captivating mountaintop views, then stepping outside to enjoy the finest resort-style amenities and winter activities.

Imagine not having to worry about flight and hotel bookings for your next ski adventure, not to mention no longer needing to lug around all that bulky skiing equipment and cold weather gear.

Imagine unwinding to the fullest—with the absolute privacy of your very own home.

Mountain Village, CO Homes View

Sounds like the dream vacation, doesn’t it?

When you own a vacation home in an exquisite location like Mountain Village, CO, you don’t have to imagine anymore. This San Miguel County town is a great place to turn the vacation of your dreams into reality.

If you’ve ever thought about putting your money into a second home, this guide is for you. Below, we’ll cover the main reasons that prove that buying a vacation property is a worthwhile investment, as well as why Mountain Village, CO is the ideal place to search for one.

Why buying a second home is a great idea

If you still need convincing about investing in a second home, consider these irresistible advantages:

a happy family beside the window

  • Convenience comes first

    When you have a vacation home of your own, you can enjoy your precious downtime on your own terms. Just head straight to the property, then sit back, relax, and embrace the privacy and convenience that you desire.

    With your own vacation property, there will be no more need to scramble for hotel reservations. No more flight bookings to schedule. You don’t have to deal with crowds of fellow vacationers and tourists anymore either.

    You also no longer need to pack, carry, and unpack travel essentials and recreational gear because you already have them stored at your second home, just waiting for you to return.

  • Your second home can be the ideal venue for celebrating special occasions

    Planning a big family or social event? You don’t need to shake up the furniture and decor at your permanent residence. Having a second home will give you the space that you need to accommodate social gatherings with a significant number of guests.

    Plus, if you choose a second property in an exquisite location like Mountain Village, CO, you don’t have to worry about keeping your guests engaged and entertained. The location itself will provide recreational opportunities that can make your family gathering or social function even more unforgettable. It wouldn’t even be a surprise if your vacation home starts an annual tradition, especially for family reunions.

  • You’ll get a strong head start on your retirement

    No matter how near or far your retirement years maybe, buying an idyllic second home will be a step in the right direction toward a satisfying retirement.

    Investing in a vacation home now will spare you from the hassles and stresses of searching for the ideal retirement home when you are older. Who knows? By the time you reach retirement age, your options—based on your needs and preferences—may be significantly more limited because all the best properties have already been snapped up.

    In addition, when you invest today in a second property that’s suitable for your retirement needs, you can pay off your mortgage early so you don’t have to worry about it as much. You might have already paid off the mortgage in full, or have only a minimal balance left to budget for.

  • two hands holding a mini model house

  • Second properties can help you sustain and build your wealth

    Having a property that you only need for vacations opens up opportunities for you to earn additional income. And as any savvy investor will affirm, diversifying revenue streams can pay substantial dividends when they are properly and carefully managed.

    Offering the property to vacationers looking for a comfortable space to rent out short-term can prove to be a lucrative opportunity, especially in a beautiful location, such as Mountain Village, CO.

    Running a rental property can also give you tax benefits. If you rent out your vacation property for fewer than 14 days every year, you are allowed to deduct property taxes and your mortgage interest from your gross income.

    In addition to rental income that you can gain in the short term, investing in a vacation home in a desirable location is going to reward you with substantial returns in the long run. You can confidently choose a luxury property in Mountain Village because the potential for appreciation is greater there. The location is constantly in high demand, but the location is geographically finite—the mountain isn’t growing any additional land for new properties.

…But why buy a second home now?

The previous points describe the general advantages of buying a second home. These apply regardless of when you decide to invest in a vacation home.

In addition to these common benefits, however, here are two reasons for you to act now if you are seriously thinking about owning a second property:

  • Low mortgage rates that may not last for long

    In response to the massive economic impact caused by the COVID-19 pandemic, the Federal Reserve has lowered mortgage interest rates to encourage people to continue buying real estate despite the challenging economic climate.

    At the time of writing, interest rates for home loans are hovering at just around 3% (an average of 3.20% as of April 28, 2021). As the economy recovers—especially building on increasing public confidence as COVID-19 vaccinations become more widespread—economic projections suggest that these historically low mortgage rates will start rising through the rest of the year.

    Simply put, if you want to lock in a low mortgage rate that will give you lower monthly payments over the next few years, the time to buy that second home is now.

  • The competition for vacation homes is getting tighter

    One more effect that the coronavirus pandemic has created on the second home market is a notable increase in demand.

    Part of this is because people realized that crowded urban areas are not ideal in the event of a viral outbreak, as seen in metropolitan centers like New York. In an era where social and physical distancing is the norm, having a private residence far away from densely populated areas offers a literal breath of fresh air.

    In addition, the pandemic experience has also revealed that remote working arrangements are a viable alternative. Many professional roles can now be performed virtually over the internet, giving more people reason to move far away from cities.

    Lastly, as more people are vaccinated, travel restrictions will begin to be lifted. Traditional vacation and tourist seasons are bound to return—with a great deal of excitement, at that. Anyone eyeing lucrative earning opportunities through rental income is already targeting an investment in a quality piece of real estate in a tourist-friendly destination, much like Mountain Village, CO. If you don’t want to miss out, it’s time to dive into the second home market.

A few important considerations when buying a second home

While investing in a second home offers its fair share of perks, buyers should also be mindful of the following factors that will affect your purchase, as well as long-term ownership of the property.

  • Different mortgage rules apply for second home purchases

    If you already have a primary residence, expect lenders to apply more stringent approval requirements (higher credit scores and lower debt-to-income ratios, for example). This is especially true now that mortgage rates are at all-time low levels and are in high demand among real estate buyers.

  • Be ready to pay a higher down payment

    A second home might also require a higher payment up front. Be prepared with as much as 20% to 30% of the final sale price if you want to snag a piece of prime real estate in a popular vacation destination, such as Mountain Village, CO.

  • Consider the other costs of ownership

    You can ignore the previous two points if you’re a high-end buyer with the means to pay the full sale price in cash. However, you should also be mindful of other important costs of ownership.

    1. One of these costs is a suitable insurance policy. If you’re considering a home in a high-elevation location like Mountain Village, CO, look into your insurance options and make sure that your investment is fully protected.
    2. Routine maintenance is essential if you are not occupying the property for a significant chunk of the year, and especially if you are opening your doors to occasional renters. Just like what you do with your primary residence, taking care of your secondary vacation home should justify a significant, regular expense.
    3. If you live hundreds of miles away from your vacation home, it would make sense to hire a property manager to oversee your second home. Whether or not you rent it out, it pays to have a local partner who can look after your investment while you are away.
    4. Last but not least, if you do plan to rent out your home, be prepared to cover significant operating expenses for the property. This includes ensuring that utility costs are covered while the rental is vacant. You’ll need to keep the property well-stocked with essential living supplies (and even appliances) to accommodate the needs of your renters. In addition, you should plan for regular cleaning and redecorating expenses to keep the property looking fresh and ready for the next renter.

What makes Mountain Village, CO the ideal place to buy a second home?

Rising 9,545 feet above sea level in the breathtaking San Juan Mountains, the town of Mountain Village is one of Colorado’s most exquisite locations. It lies southwest of Telluride and is also a part of San Miguel County.

Mountain VIllage Map

Mountain Village was founded as an unincorporated area in 1987 and was formally incorporated as a Home Rule Municipality in 1995. The location boasts a spectacular European-style aesthetic and vibe, based on the vision of its founders, resort owners Ron Allred and Jim Wells. Designed as a “pedestrian-friendly” and “ski-in/ski-out” resort town, Mountain Village represents a luxurious complement to the historic vibe of the former mining town of Telluride.

Here’s what you can expect when you buy a second home in Mountain Village:

  • Exquisite natural beauty surrounds you

    One of the most outstanding features of Mountain Village is its location in the heart of the Uncompahgre National Forest. Living here means being surrounded by thousands of acres of thriving aspen and source woodlands. You can expect your health and well-being to benefit significantly as you breathe in the freshest mountain air each day.

    Mountain Village residents don’t take their rich natural resources for granted. The town embraces “green” practices, making consistent efforts toward sustainability to preserve the area’s impeccable beauty for generations to come.

  • cable transportation

  • One of the most unique transportation systems in the country

    Primary road access to Mountain Village is made possible by the Colorado State Highway 145, which also conveniently connects the Telluride region to the Telluride Regional Airport just six miles heading northwest.

    Between Mountain Village and Telluride, however, transportation is one of the most unique experiences you’ll see anywhere in America. The two mountain towns are connected by a three-stage gondola system. The 13-minute long ride operates as a free service, with a bonus offering of impeccable mountainside views along the way.

  • A booming tourism industry awaits

    On paper, Mountain Village has a population of approx 1,400 full-time residents. However, this number can balloon to 20,000 during peak vacation season. Imagine the income-generating potential you can tap if you open the doors to your second property to this bustling crowd of tourists.

  • Diverse real estate options for every type of discriminating buyer or investor

    Most of Mountain Village’s permanent residents live in the Meadows neighborhood. This location offers a wide range of residential real estate options, including single-family homes, townhouses, and condo units. The community enjoys convenient access to walking/hiking trails, as well as a local playground.

  • An owners’ association takes care of the community

    While Mountain Village has an official government that runs the town, there is also the Telluride Mountain Village Owners Association (TMVOA). TMVOA is responsible for keeping property owners engaged and manages essential efforts required to maintain funding for the gondola. The association also handles event sponsorships, community research, and grant awards.

  • a happy family in snow

  • Recreational activities come in many forms

    Wondering what you can do to while away the time in Mountain Village? You might be surprised with the list of activities and experiences you can enjoy on any given day.

    1. Skiing, snowboarding, and snowshoeing along scenic winter trails are among the top experiences that Mountain Village has to offer. Expect these winter activities to be a staple in your itinerary.
    2. Looking for places to take your kids in Mountain Village? Try the Madeline Hotel and Residences’ ice skating rink or the children’s playgrounds at the Meadows or Sunset Plaza.
    3. If you’re staying during the warmer months of the year, you can explore the mountain on two wheels with a wide variety of bike trails that can accommodate both experienced riders and beginners.
    4. You can also explore breathtaking hiking trails that showcase the impeccable natural beauty of the San Juan Mountains.
    5. Explore the downtown area known as the Mountain Village Center, where shopping, dining, and entertainment destinations are found.
    6. Catch a show at the Telluride Conference Center, the town’s main performing arts venue.
    7. Want to see if you have what it takes to climb a rock face? Check out the man-made boulder known as Adventure Rock just outside the Telluride Conference Center. This all-ages rock-climbing attraction can be used free of charge.
    8. Elk Lake is a great place for the whole family, with activities that include kayaking and canoeing, fishing, sunbathing, and picnicking.
    9. Looking for some friendly competition with family or friends? You can find many destinations that offer facilities for disc golf, tennis, pickleball, and other casual sports.

Explore your real estate options in Mountain Village, CO with T.D. Smith

If you’re looking for a dependable local expert who can show you the finest luxury properties available in Mountain Village, CO, contact T.D. Smith, President and Managing Broker of Telluride Real Estate Corporation. Having been in the business of selling prime real estate in the Telluride region for more than 40 years, T.D. confidently claims to bring “Mountains of Experience” in turning real estate dreams into reality.

Ready to discover your ideal vacation home in Mountain Village? Call T.D. Smith today at 970.729.1577 or email td(at)tdsmith(dotted)com for more information.