Buyers • Home Owners • February 13, 2020

Vacation Home or Income-Producing Investment

by Windermere Windsor

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Whether you’re a skier who loves the mountain slopes of Colorado, a lover of the beaches of Southern California, or a potential retiree seeking to escape the snow-laden Northeast for the wide-open, sunny lands of Arizona, there are homes available to meet a wide range of budgets. The biggest decision a potential second homeowner must make is whether they are going to solely own their vacation home or turn it into a vacation rental. Here are the advantages and disadvantages to both options:

Investing in vacation rentals

Pros:
- A good vacation rental property generally provides a healthy rental revenue which could potentially cover mortgage payments while also generating healthy additional profit.
- Using an online short-term rental service like Airbnb makes it convenient to manage your rental property. Their website interface makes pricing, marketing, and communication with potential guests quite straightforward and easy. Airbnb will also oversee the billing process for you.
- You may qualify for federal tax breaks and deductions related to your investment property. Everything from professional fees or commissions – including property management services- to cleaning and maintenance are potential tax write-offs.
Cons:
- Vacation rentals can be costly to manage, both in terms of time and money. These properties may require seasonal upkeep and special maintenance considerations. You may even incur costs to maintain or monitor the property even when it’s not actively being utilized.
- Vacation rental properties are particularly sensitive to seasonal fluctuations and economic downturns, which could leave you financially exposed if you suffer a lack of booking revenue.
- Many states and cities are cracking down on short-term rental services. In California, for example, the fight has been primarily local, reaching a fever pitch in the San Francisco Bay Area. Increasingly state and local municipalities are seeking to reign in short-term vacation rentals, which could put a damper on potential revenue from these properties.
- You may experience higher renovation and repair costs on a short-term rental. Most travelers expect the latest appliances and furnishings, so you will have to update every few years. Unfortunately, short-term renters are less likely to report any necessary repairs and guests are far less likely to treat the property with respect since there’s no sense of ownership or obligation.

Owning a vacation home

Pros:
- Long-term profits: While assets fluctuate in value in the short term, vacation properties are more likely to retain their value and appreciate because they are located in popular areas with a geographically limited supply.
- Familiarity: Returning to the same place time and after time can be comforting as you become familiar and comfortable with the location. It allows you the freedom to be yourself and the opportunity to expand long-term friendships with residents.
- Convenience: The ability to conveniently store items that are used exclusively at the second home simplifies travel and packing.
- Retirement head starts: Though we may love where we work and live, every place has its drawbacks. A common goal of retirement is to have a place to retreat for the times of the year we dislike the most at our main residence. Locating and buying a second home prior to retirement enables you to experience the benefits of a refuge before actual retirement, a time to correct and amend your plans if the reality is different than the dream.
Cons:
- Initial purchase costs: Most people have higher expectations for a property that they intend to own, rather than to rent. These expectations can translate into high prices.
- Home maintenance: As the homeowner, you are responsible for all home maintenance work.
- Travel time: A second home will be located hours from your primary residence, requiring either long auto trips or airline flights.
- Inflexibility: If you are paying a significant amount of money each month for a second home, you may feel that you need to constantly visit the property to justify your investment.

Supply and Demand

by Windermere Windsor

Northern Colorado gave us a real-life economics lesson in January 2020.

Compared to one year ago…

· Inventory was down 10% (Supply)

· Homes under contract went up 31% (Demand)

· Prices were up 5% (Result)

If you would like to see a video recap of our annual Market Forecast you can watch that HERE.

Home Owner • February 4, 2020

Incorporate Pantone’s Color of 2020 into Your Home

by Windermere Windsor

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Classic Blue has officially been anointed Pantone’s 2020 “Color of the Year”. Pantone says it picked this color because of its ability to instill calm, confidence, and connection as we cross the threshold into a new decade. A dependable color, Classic Blue is timeless, and enduring, making it a great addition to just about any room in your home.

Here are some ways to add this stunning shade of blue to your home:

Furniture

Add a splash of color to any room with Classic Blue furniture, such as these dining room chairs, which express a sense of tradition and elegance, as well as unexpected boldness.

Tile Work

Geometric patterns are all the rage this year, so why not liven up your kitchen backsplash with tiles that incorporate the color of the year? Here’s an example that achieves this through bold, colorful design that doubles as a piece of art.

Cabinets

If geometric tile isn’t your thing, the are other ways to bring your kitchen to life with this stunning shade of blue. If you’re not in a position to purchase all new cabinets, simply paint your current cabinets for a more affordable update.

Walls

Whether it’s built-ins, panels, or an accent wall, Classic Blue can make your furniture and décor pop. Consider this color when you paint your living room or bedroom as a way to encourage calm and confidence in your favorite spaces.

Buyers & Sellers • February 3, 2020

Kick-Starting a Kitchen Remodel

by Windermere Windsor

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Ask a homeowner which room they would most like to improve, and most will point to the kitchen – the starting point for every meal and the heart of the home.

Ask those same people why they don’t move forward with a kitchen remodel, and many will say the project seems so overwhelming they don’t know where to start. If your kitchen needs an upgrade, here are some step-by-step suggestions to get you started.

Gather your thoughts

The steps that follow will all progress much easier if you take time beforehand to form a strong opinion about the desired look and layout of your new kitchen.

Start by reviewing kitchen magazines and photo-heavy kitchen remodeling guides and/or websites. Compiling clippings and printouts in a notebook helps you refine your vision. Clip or print the photos that capture your imagination, add notes, and draw circles and arrows around the things you like most.

Once you have a clearer vision of what you want, search online for better examples and new solutions, if necessary. If you live with a significant other, share your ideas with them and don’t allow yourself to become too committed before getting buy-in from them. Contractors and sales associates will expect a unified front.

Focus on the flow

Another major factor you’ll want to consider is how your new kitchen will be used, and by whom:

Do you want to cook with others?
Do you want family and guests to gather in the space while you cook?
Do you want to serve meals in the kitchen?
Do you want to display your dishware?
Where would you like things stored for maximum efficiency?

Imagine yourself happily cooking and entertaining in your new kitchen, then note the key elements necessary to make those dreams a reality. Having a list of your desired kitchen features and storage needs will help ensure your plan meets your vision.

Determine your budget

According to the annual Remodeling Magazine survey of costs, a “midrange,” “minor” kitchen remodel will cost homeowners living on the West Coast about $23,000. Those same folks can expect to pay about $70,000 for a midrange “major” kitchen remodel. Determine what you can afford before you start work to ensure that your vision is within reach, or to help prioritize what’s most critical.

What to do with the cabinets

Replacing the cabinets is one of the most expensive improvements you can make in a kitchen remodel (typically consuming 20 to 40 percent of the overall budget, according to Architectural Digest).

Consider refacing instead. This can include one of the following: 1) Installing completely new cabinet doors and drawer fronts or 2) installing new wood or laminate veneer over the existing cabinet and drawer fronts or 3) simply refinishing the existing cabinet and drawer fronts.
Shopping for contractors

The contractor you choose will determine much of the cost, the pace of your project, the amount of disruption, the final results, and your level of satisfaction. So be thorough in your search:

Ask friends and family for referrals and advice.
Interview at least three of the leading prospects in-person.
Ask to see samples of past work.
Look for someone who complements your operating style (similar personality and communication style).
Once you’ve narrowed your choice to one or two, ask to speak with a few past clients.

You’ll be tempted to latch onto the first contractor who gets rave reviews from a friend or family member. But remember: You and your project are unique, and it’s worth the time and effort to be rigorous in your search.

Selecting appliances

If you’re planning to replace appliances, here are three factors you’ll want to consider:

Finish – Stainless steel is still the most popular option, but beware: smudges, fingerprints, water spots, and streaks will be obvious. Black stainless steel has a warmer feel and is better at hiding spots.

Extended warranty – According to Consumer Reports, extended warranties are hardly ever worth it because today’s appliances are so reliable. And if something does fail, it’s often less expensive to just pay for the repair.

Unbiased testing and reviews – Before making an appliance purchase, use the information resources available through Consumer Reports.

A final note

Moving walls and extending your home’s foundation are both very expensive options. If your kitchen plans call for these architectural renovations, perhaps you’ve outgrown your home and need something larger (with an already-improved kitchen).

For Buyers • Fun Facts • January 31, 2020

Affordability

by Windermere Windsor

Housing affordability is a hot topic especially after the strong price appreciation that has occurred in our market over the last 7 years.

Here’s some interesting research on affordability…

Each quarter the National Association of Home Builders measures affordability in hundreds of markets across the Country.

Their method is to count the number of homes in a market that could be purchased with that particular market’s median income.

For example, San Francisco is the least-affordable market where only 8.4% of the homes could be purchased with their median income.

The most-affordable is Monroe, Michigan where 95.3% of the homes could be purchased with their median income.

Guess where all of the 10 least-affordable markets are. California!

Guess where almost all of the 10 most-affordable markets are. The rust belt (cities in Michigan, Ohio, upstate New York, etc.)

The U.S. average is 63.6%.

Metro Denver comes in at 55.3% and Northern Colorado at 54.5%.

So, roughly half of the homes in our market could be purchased with our local median income.

Home Owner • Windermere Real Estate • January 28, 2020

Is it time to downsize?

by Windermere Windsor

Choosing less space often has to do with a desire to live a life that’s simpler. Whether you’re retiring, want an eco-friendly, low-maintenance lifestyle or your children have moved away, downsizing might be the best option for you. Here are the advantages and disadvantages to consider before making the move and questions to begin asking yourself now.

Advantages

Increased cash flow.
- Spend less on your mortgage payment and you are likely to have more money leftover for other needs or desires.
More time.
- Cut down on time spent on household chores such as cleaning and vacuuming which will leave you with more hours in the day to do something more enjoyable.
Lower utility bills.
- Costs less to heat and air condition a small home.
- Less square footage decreases the amount of energy expended.
- Reducing energy is better for the environment and it helps keep your home green.
Reduced consumption.
- You would likely buy less since you won’t necessarily have the room for it.
Minimized stress.
- Homeowners who have successfully downsized often feel happier because they are no longer overwhelmed by the demands of a larger home.
- Less responsibility, less housework to do, increased cash flow and flexibility equals reduced stress.

Disadvantages

Fewer belongings.
- Moving into a smaller space would mean you would need to give away or donate furniture, books, kitchen supplies, etc.
No room for guests.
- Hosting holiday dinners might be out of the question for a smaller home.
Space restrictions.
- Less space means you could feel cramped.
Lifestyle changes.
- For long-term homeowners, downsizing means changing a lifestyle.

What to consider before downsizing

These questions are important to ask yourself because for some people, downsizing may not be the best option for them.

Does size matter to me?
1. Think about how much your identity is wrapped in your house.
2. Is it important for you to have a guest room or a second bathroom?
Will I miss some important things about a more spacious home?
1. Will moving into a smaller home feel like a step backward?
How will other life events affect my living in a smaller home?
1. Consider possible scenarios you may not expect such as adult children moving back home or if you plan to add a child.

The Cost to You

How much will it cost to replace the furniture?
1. When you move into a smaller home this means you might have to downsize your furniture to make room.
How much will it cost to get rid of the stuff I don’t need or won’t fit?
1. It’s important to have a plan for how you’re going to sell or give away the things you don’t need.
2. Consider things like family heirlooms. What are you going to do with all your antiques or treasures that your smaller home may not be able to accommodate?
How much will I get when I sell my current home, and will it help cover the cost of buying my new home?

If you know downsizing is the right option for you, you’re probably asking yourself, “Should I sell first and then buy or buy first and then sell?”. When you’re ready to discuss your options, talk to an experienced Real Estate Agent.

Loveland Real Estate • Virtual Tour • January 27, 2020

Beautiful Two Story Home in Loveland!

by Windermere Windsor

Welcome home to 6342 Sea Gull Circle in Loveland at The Waterfront at Boyd Lake with lake access, boat ramp, sandy beach, park and volleyball! Enjoy relaxing on the back patio next to open space on this quiet street. Beautiful 2 story boasting vaulted ceilings, open floor plan, hardwoods, featuring main floor ensuite master bedroom with newly remodeled luxurious 5 piece! Kitchen has upgraded maple cabinets & a large island. Main floor laundry, study/office, plus 2 bedrooms with Jack & Jill bath and loft upstairs. Large basement with plumbed in bath to expand. Walking distance to the neighborhood park or lake. Contact John Taylor at (970) 541-1003 for your private showing for more information or click the link below for more details.

https://windermerewindsor.com/listing/104898718

Economics 101 • Mortgage • January 24, 2020

Rate Forecast

by Windermere Windsor

Here is our interest rate Forecast for the next year.

Our Chief Economist, Matthew Gardner, predicts that rates for a 30-year fixed mortgage will stay between 3.8% and 3.9% for 2020.

He doesn’t see rates going above 4.0% until at least the first quarter of 2021.

This is obviously great news for buyers as their payments will stay much lower as compared to having a rate at the long-term average of 7.5%.

If you would like to see the slides from Matthew Gardner’s Forecast presentation, we would be happy to get those in your hands. Just let us know if we can help!

Housing Trends • January 23, 2020

Refresh Your Bathroom into a Spa

by Windermere Windsor

With some creative thinking and a few do-it-yourself projects, you too can transform an everyday bathroom into a spa-like experience:

High-end shower head

There are a plethora of shower head options available today that can make even a simple shower space feel like a luxuriating experience.

Heated towel rack

Once out of the tub/shower, heated towels help you comfortably maintain your body temperature while the pampering continues.

Dimmable lights

Adjust the bathroom lights to match your moods and activities: brighter for primping, and dimmed to create a calming effect.

Less clutter

Not everything that’s meant for the bathroom needs to be stored in the bathroom. Look for things that can be moved elsewhere to make the space feel a bit bigger and more organized.

Calming scents

Essential oils, luxury soaps, and scented candles are an easy way to create an aromatic atmosphere of luxuriousness.

Economics 101 • Market News • Windermere Real Estate • January 22, 2020

Matthew Gardner – Will There Be A Recession in 2020?

by Windermere Windsor

Windermere Chief Economist, Matthew Gardner, answers the most pressing question on everyone’s minds: Will there be a recession in 2020? Here’s what he expects to see.