With its distinct, “old mountain town” character and enduring vacation-worthy appeal, Telluride is a destination like no other.
Read on to learn why this former mining town is the best place to start looking if you’re in the market for a second home:
Telluride is one of the best ski towns in America
One of the few Colorado ski towns to stay true to its rugged frontier roots, Telluride has been hailed by Travel + Leisure as “America’s Coolest Ski Town” for good reason.
Nestled in a secluded canyon in the San Juan Mountains, the ski resort offers more than 2,000 acres of terrain ideal for skiing. It is also surrounded by similarly outstanding destinations that make the most of the exquisite location. Case in point: the town of Mountain Village has an exuberant Old West charm that vacationers cannot resist.
Even in the warmer months, this area is ideal for unforgettable outdoor getaways. Scenic hiking and mountain biking trails abound for anyone who fancies exploring during the summer.
A vacation home offers convenience right when you need it
When you have your own vacation property in Telluride, you don’t have to worry about booking accommodations for your visit. This is a godsend during peak tourist seasons, when rooms and home rentals get snapped up fast.
If you want to stick around for the off-season, owning a home in Telluride lets you enjoy the city’s beauty minus the huge crowds.
A vacation home also gives you exclusive access to amenities that you want to enjoy. You can take a dip in a hot tub without having to worry about your privacy, for example. Most hotels and ski resorts can also offer conveniences like this, but you will have to share them with other vacationers.
You can grow your wealth and equity
Investing in real estate is one of the most reliable ways to build and preserve wealth and to expand your property portfolio.
Because of Telluride’s desirable location and consistent demand from the tourist market, you can count on the value of your property to continue to increase over time. Buying a vacation home now is a smart move, rather than waiting until real estate prices in the area skyrocket to unreasonable levels.
You can look into the income-generating potential of vacation homes, too. Turning your vacation home into an attractive rental option is a sensible way to maximize your investment while you are not using it.
You can gain tax benefits from a vacation home
Since a vacation home still counts as a personal residence, you can deduct mortgage interest and property taxes from your total tax obligations.
To be eligible, make sure that the mortgage for the vacation home is a secured debt, or a loan backed by collateral. You’ll also have to file form 1040 with IRS and make a list of these deductions.
Moreover, if the home eventually becomes your primary residence and you decide to sell later, the profit from the sale can be tax-free up to $500,000.
These advantages generally apply to vacation homes used primarily for personal purposes. There are other important rules that apply to vacation homes used as rental properties.
For instance, you do not have to report rental income if the rental period does not exceed two weeks (14 nights) within a year. Any longer than that renders your vacation home a rental property that requires obligatory reporting to the IRS.
If you use the property for at least two weeks every year or 10% of the number of days it was rented out, your vacation property may still be considered a personal residence. This means you can still avail of the mortgage and property tax deductions, but you cannot claim any rental real estate loss allowances.
Your vacation property can eventually be your perfect retirement home
Telluride offers many real estate options, some of which might be suitable for a well-earned, luxurious retirement. The range of real estate options is exquisite, from beautifully preserved Victorians, to cozy log cabins, and everything in between.
If you can see yourself spending your golden years in the majestic mountainside communities of Colorado, buying a vacation home in the area can help you prepare for a satisfying retirement.
An excellent vacation home in Telluride can preserve and enrich your family legacy
A vacation home, like any piece of real estate, is something that can be passed down through the generations. Your heirs can continue to appreciate the charm of Telluride with their own families long after you’re gone. Holding onto the property will allow you to preserve important family traditions, set against the beautiful backdrop of the Rocky Mountains.
Ready to find your Telluride vacation home? Learn more about the process in our comprehensive home buyers guide and get in touch with me, TD Smith, at +1 970.729.1577 or td@tdsmith.com for the best professional real estate services in town.