Deep Creek vacation home is dream of a lifetime

By Marie Marciano Gullard, Special to The Baltimore Sun

10:18 a.m. EDT, July 13, 2012
Hanging on the wall of Mike and Jean Tumbarello's new retreat at Deep Creek Lake is an old framed greeting card with a primitive drawing of a brown log cabin nestled among trees aglow with autumn colors. The scene is rendered in crayon with a sentiment that reads, in part: "Jean, here's our cottage in the country. I wish I were in it with you right now. …"

"The card was sent before we married — probably 1974, when we were dating in college, when you actually had to use snail mail," Jean Tumbarello recalled.

While her husband's artwork hasn't improved that much over the ensuing years, he was better at his promise of a place in the country. What the couple built together — after 34 years of marriage — is a 4,000-square-foot Arts & Crafts-style bungalow with an interior that could be described as a "mini lodge."

"We got our house as an anchor for our dream life," said Jean Tumbarello, who, together with her husband, will move out of their rented condo in Ellicott City and embark on their new life as full-time residents of Deep Creek Lake.

More here.

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Buying or selling real estate in Garrett County or Deep Creek Lake, Maryland? Call Jay Ferguson of Railey Realty for all of your real estate needs! I take great pride in referrals, and I assure you, I will take great care of your friends, family & colleagues!

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Search Homes/Lots for Sale

What can you buy for $300,000? Vacation homes to escape from the Beltway

By Katherine Reynolds Lewis, Published: February 22

Interest rates are still at historic lows. Real estate prices remain depressed in many areas. As you look forward to summer, you may be wondering whether this would be an opportune time to get a bargain on a vacation property that you could enjoy with your family while earning some rental income.

To answer that question, we looked at popular vacation destinations within a reasonable drive of Washington, D.C., to see what kind of escape from the Beltway you could purchase for $300,000. In some areas, sellers are stubbornly hoping that the market will rebound enough to reap the high prices they’ve set for their beach and mountain homes. In others, lower rental volumes and the tough economy have left property owners with limited resources for fixing up properties enough to make them irresistible to prospective buyers.

But we did find three appealing properties well located for a getaway from Washington that also hold the potential for cash from rentals. In North Carolina’s Outer Banks, we found a wood-shake beach cottage on Hatteras Island listed at $295,000 with four bedrooms, three bathrooms, a screened porch and an open air hot tub. On a peninsula jutting out into Deep Creek Lake, Md., we found a $269,000 three-bedroom log cabin minutes from the state park and a short drive to skiing and golf at Wisp Resort....

More here.

Buying or selling real estate in Garrett County or Deep Creek Lake, Maryland? Call Jay Ferguson of Railey Realty for all of your real estate needs! I take great pride in referrals, and I assure you, I will take great care of your friends, family & colleagues!

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Living in Your Dream Vacation Home

Thanks to low interest rates and good prices, these couples took the plunge and bought the vacation homes they’d always wanted.

By Kathleen Bridges http://www.washingtonian.com
Published Friday, February 17, 2012

....Although prices in many popular resort areas are still falling, agents and lenders say the market is showing signs of recovery. In Virginia’s Rappahannock County, the number of homes sold climbed by almost 15 percent from 2010 to 2011. Homes in some areas are also selling faster—in Maryland’s Garrett County, they sat on the market an average of 208 days this past November, a drop of 26 percent from the same month in 2010.

Bill McGuire, a lender for First Home Mortgage in Easton, says that historically low interest rates and low prices have finally begun to lure buyers: “A lot of our clients had been looking casually for several years but were too afraid to jump in. They’re realizing that now may be the time to buy.”

More here.


Buying or selling real estate in Garrett County or Deep Creek Lake, Maryland? Call Jay Ferguson of Railey Realty for all of your real estate needs! I take great pride in referrals, and I assure you, I will take great care of your friends, family & colleagues!

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Cover story: Is now the time to buy a second home?

By Michele Lerner SPECIAL TO THE WASHINGTON TIMES

Wednesday, November 23, 2011

If you long to retire within sight of the Chesapeake Bay, by the shores of Deep Creek Lake or atop the mountains at Wintergreen, you may be thinking about taking advantage of today’s low interest rates and affordable prices to buy your golden-years dream home right now.

Financial advisers and Realtors suggest that while this might be the right move for some homeowners, the decision to buy a second home should be made only after careful consideration of the impact the choice would have on finances and lifestyle.

“The first and most important consideration is to make sure that buying another home doesn’t compromise your overall financial plans,” said Ronya Corey, a financial adviser with Merrill Lynch in the District.

More here.

Buying or selling real estate in Garrett County or Deep Creek Lake, Maryland? Call Jay Ferguson of Railey Realty for all of your real estate needs! I take great pride in referrals, and I assure you, I will take great care of your friends, family & colleagues!

877-563-5350 - toll free

Deep Creek Lake, Md.: A spot outside the resort grid

Saturday, November 12, 2011 Last updated: Sunday November 13, 2011, 11:07 AM
BY SHANNON ROXBOROUGH
SPECIAL TO THE RECORD
The Record

Fair Lawn residents Andrew and Sandy Lewinski began their search for a vacation home with one condition: That they agree to consider only places with an atmosphere of separateness, allowing them to feel sheltered from their ordinarily fast-moving lives.....

Slower pace a must

What the Lewinskis, both technology professionals closing in on their 50s, decided to do was hunt for a second home where they could leave the rapid-pace world behind and "actually breathe."

After an exhausting, unfruitful three-year search that took the them to popular second-home spots in several Northeast states, including Pennsylvania, New York, Connecticut, Vermont and New Hampshire, a friend in Washington, D.C., suggested they try Deep Creek Lake in Maryland.

More here.

Buying or selling real estate in Garrett County or Deep Creek Lake, Maryland? Call Jay Ferguson of Railey Realty for all of your real estate needs! I take great pride in referrals, and I assure you, I will take great care of your friends, family & colleagues!

877-563-5350 - toll free

Planning a vacation? Think Western Maryland

Posted: 02/10/2011
Last Updated: 22 hours and 42 minutes ago
By: Charley Crowson

BALTIMORE - While many regions of the state get occasional spurts of snow, the Deep Creek Lake area in Western Maryland is the state’s true winter wonderland.

Since we can’t do anything about the cold weather, take a long weekend, and get out there and enjoy it.

Located just three hours from Baltimore, the resort offers a great chance for downhill and cross-country skiing, outdoor fun and a close getaway.

More here.

If you are thinking of buying or selling real estate in Garrett County or Deep Creek Lake, Maryland, call Jay Ferguson of Railey Realty for all of your real estate needs! 877-563-5350

Deep Creek Do It All specializes in cleaning services in Garrett County & @ Deep Creek Lake. Give them a call (301-501-0217) or visit the website - competitive rates and quality results from a locally owned & operated company!

Market for Vacation Homes Is on the Rise

From the WSJ.com:

By S. MITRA KALITA

Sales in many vacation communities across the U.S. soared last year to levels not seen since boom times, driven by deep discounts, cash purchases and buyers' rising stock portfolios.

On Mercer Island, Wash., waterfront sales nearly tripled in 2010, compared with a year earlier, reaching par with 2006 volume there. Sales on Hilton Head Island, S.C., rose 14% for the year. Palm Beach, Fla., experienced a 40% annual increase and a 54% increase in homes under contract, indicating an especially strong fourth quarter. Palm Beach sales volume now is comparable to its 2007 peak. These figures were gleaned by brokers in each locale.

"The proverbial train has left the station," said Ned Monell, an agent with Sotheby's International Realty in Palm Beach. "We haven't felt energy like this in a long time. Buyers sense that they've been on the sidelines long enough."

The question now is whether the momentum will last. The strength of second-home sales paints a stark contrast to the overall housing market, which is expected to worsen in 2011.

Read the full article here.

If you are thinking of buying or selling real estate in Garrett County or Deep Creek Lake, Maryland, call Jay Ferguson of Railey Realty for all of your real estate needs! 877-563-5350

Deep Creek Do It All specializes in cleaning services in Garrett County & @ Deep Creek Lake. Give them a call (301-501-0217) or visit the website - competitive rates and quality results from a locally owned & operated company!

6 Reasons to Buy a Vacation Home Now - Resort Life Blog

Source

RISMEDIA, August 11, 2010—As the real estate market continues its bumpy road toward recovery, the vacation home market is heating up, causing homeowners around the country to seriously consider buying the vacation home they’ve been eyeing.

Margaret La Grange and Christine Van Tuyl, an award-winning mother-daughter team with Prudential California Realty in Coronado, CA, offer the top six reasons why now is the best time to buy a vacation home.
“Whether you’re looking for a charming beach bungalow or a high rise condo with spectacular views, a host of market conditions have come together to make buying a vacation home a smart move,” said Christine Van Tuyl. “The drop in home prices, incredibly low interest rates and the increase in demand for vacation rentals make it an optimal time to explore a second home purchase.”


1. Prices down 20-40%. In places like Coronado, CA and greater San Diego, you can pick up a beach cottage or high-rise condo at extremely low prices. That’s only the beginning. Lower prices and less competition are the tip of the iceberg-sized list of factors that make it a good time to consider a vacation home buy.

2. Interest rates. Rates, of course, are at historic lows. Lock in a good rate, buy a vacation home in a desirable location, and watch your asset appreciate over the long-term.

3. A relatively safe investment. Real estate has proven itself to be a safe place to park your money for the long-term. (Long-term is key). Stock market woes have always pushed people to look for alternate investments, and real estate is a consistent stronghold.

4. Make a profit. Or, better yet, make your vacation home pay for itself. Only planning on using your vacation home a few months out of the year? Rent it out short-term to vacationers looking for a great place to stay. Many homeowners make a killing listing their homes on VRBO.com. (Vacation Rental By Owner). When your monthly mortgage payment is less than or equal to one peak week rental, twelve weeks of rental will cover your mortgage payments for the entire year.

5. Vacation rental demand is heating up. Overall, vacation rentals are less expensive than hotel rooms, especially for longer visits and for families. Savvy travelers know this, and are heating up the demand for vacation rentals. In addition, the weaker dollar makes U.S. destinations attractive to travelers from countries with stronger currencies.

6. The pressure of bidding wars is off. Sure, you may not get bargain basement prices on a beachfront cottage—but you might if you’re willing to buy a few blocks away. Houses aren’t exactly flying off the shelves these days, but buyers now have less pressure to make a hasty decision. Buyers looking for deals on vacation homes can really do their homework.

If you are thinking of buying or selling real estate in Garrett County or Deep Creek Lake, Maryland, call Jay Ferguson of Railey Realty for all of your real estate needs! 877-563-5350

Deep Creek Do It All specializes in cleaning services in Garrett County & @ Deep Creek Lake. Give them a call (301-501-0217) or visit the website - competitive rates and quality results from a locally owned & operated company!

International Interest in U.S. Homeownership Increases - Reuters

Reuters - US Edition (NY,NY) via World Wide Web 07/07/2010
Source Website: www.reuters.com

International Interest in U.S. Homeownership Increases, Realtors(R) Report

Wed Jul 7, 2010 2:24pm EDT

WASHINGTON, DC, Jul 07 (MARKET WIRE) -- International home buyers are increasingly attracted to property in the U.S., according to the National Association of Realtors(R)' 2010 Profile of International Home Buying Activity. Several factors, including the strength of the dollar, the value and desirability of U.S. real estate, and the emerging economic recovery, continue to drive international interest in owning a home in this country. "While all real estate in the U.S. is local, the same is not true for property owners," said NAR President Vicki Cox Golder, owner of Vicki L. Cox Real Estate in Tucson, Ariz. "The U.S. continues to be a top destination for international buyers from all over the world. Foreign buyers understand the value of owning a home in this country and can rely on Realtors(R) to help guide them through the complex process of buying property in the U.S. With expertise, knowledge and experience, Realtors(R) have a global perspective." The survey, released today, covers the period between April 1, 2009, and March 31, 2010. During that time foreign buyers, including those with residency outside the U.S. as well as recent immigrants and temporary visa holders, are estimated to have purchased $66 billion of U.S. residential property, or 7 percent of the residential market. Slightly more than a quarter of Realtors(R), 28 percent, reported working with at least one international client in the past year. This is a significant increase from the 2009 report, when 23 percent of Realtors(R) worked with foreign clients. Eighteen percent of all Realtors(R) were estimated to have completed at least one sale, compared to 12 percent last year. "Several factors have contributed to an increase in international buyer interest in the U.S.," said Golder. "A large majority of Realtors(R) report the changes in value to the U.S. dollar have had a strong impact on the international real estate business. In addition, perceptions abroad about trends in the U.S. real estate market have led many international clients to believe purchasing a home in the U.S. is more affordable than in their country and holds more value."

Read more here.
If you are thinking of buying or selling real estate in Garrett County or Deep Creek Lake, Maryland, call Jay Ferguson of Railey Realty for all of your real estate needs! 877-563-5350 Deep Creek Lake Info, Business Directories, Classified Ads, Events & more! Advertise on http://www.deepcreekalive.com/!

Great Summary of the Second-Home Market Nationally

Some interesting data & analysis that mirrors the Deep Creek Lake second home market:

July 6, 2010 by cloeffler
Check out this post originally published in the Tahoe Daily Tribune by Richard Bolen, REALTOR(R), McCall Realty:

(A quick “shout out” to all our friends in the Lake Tahoe area who helped NAR host the 2010 Resort and Second-Home Symposium. We couldn’t have done it without you! We have only heard wonderful comments about the successful event with 214 participants in attendance. Lake Tahoe is truly a national treasure — both in its natural beauty and the hospitality of its residents!)

SOUTH LAKE TAHOE, Calif. — About 65 percent of South Lake Tahoe Homes are second homes or vacation properties. I often write about, or use the phrase second home buyer characteristics, which makes sense. South Lake Tahoe is very much a second home resort real estate market.

Some 65 percent of area homeowners live elsewhere. This means that about a third of South Lake Tahoe homes are primary residences.

The National Association of REALTORS did a specific study on vacation or second home buyers. I thought it would be of interest to look at the most recent findings.

Before looking at the particulars, there are a few key characteristics of the vacation and second home buyer to always have in mind. These are important, especially as it relates to style and manner when representing a buyer:

• The vacation or second home buyer lacks urgency.
• The vacation or second home buyer is overqualified financially.
• The vacation or second home buyer is looking for a family retreat.

Of these, lack of urgency is really important to understand to best represent a buyer. What I like to do is “mirror” a buyers pace if I can. If a buyer seems to want to move quickly, I quicken my pace. If the buyer moves slowly, I respond in kind.

Sometimes, though, a particular house or situation does require urgency. An underpriced house, or one that is right priced and exceptionally attractive can require immediate action to get it.

In cases such as this, I do recommend that the vacation or second home buyer move as quickly as they possibly can.

If I ever quicken my pace, it is because I don’t want a buyer to miss out on something they obviously really like. I am never in a hurry just to make a sale. Buyer comfort to me is king.

2010 Vacation Home Buyers Survey (based on 2009 buying trends)
Sales and prices:

• Some 10 percent of U.S. home sales were vacation or second home properties.
• 1 percent more vacation or second homes sold in 2009 compared to 2008.

Buyer characteristics:

• The median age of the vacation or second home buyer in 2009 was 46 years of age.
• 28 percent of vacation orsecond home buyers were older than 55.
• The median household income of 2009 vacation or second home buyers was $87,500.
• 39 percent of vacation or second home buyers had a household income that exceeded $100,000.
• 73 percent of 2009 vacation or second home buyers were married.
• 49 percent of 2009 vacation or second home buyer households had no children younger than 8. • 86 percent of 2009 vacation or second home buyers were Caucasian.

Property characteristics:

• 55 percent of 2009 vacation home sales were in a small town or rural area.
• 50 percent of 2009 vacation home sales were in the South.
• 71 percent of 2009 vacation or second home sales were single-family homes.
• 74 percent of 2009 vacation or second home sales were existing properties (not new).
• The median distance away from primary residence was 348 miles.

Method of Purchase and Financing:

• 54 percent of 2009 vacation or second home buyers used a real estate agent or broker.
• 10 percent of 2009 vacation or second home sales were a foreclosure or trustee sale.
• 27 percent of 2009 vacation or second home sales were directly from an owner (17 percent that buyer knew, 10 percent that buyer didn’t know).
• 32 percent of 2009 vacation or second home buyers looked first on the internet to shop for a home.
• 12 percent of 2009 vacation or second home buyers contacted a real estate agent first to shop for a home.
• 26 percent of 2009 vacation or second home buyers found the home they purchased on the internet.
• 25 percent of 2009 vacation or second home buyers found the home they purchased with a real estate agent.
• 70 percent of 2009 vacation or second home sales used a mortgage.

Internet use:

• Nine out of ten home buyers use the Internet in their home search process.
• Is our experience that buyers contact us after internet searching first.
• More often we find the home the buyer buys, rather than what they exactly saw on the Internet.

Buyer Motivations and Expectations:

• 89 percent purchased their vacation or second home as a family retreat.
• 29 percent purchased their second home because it was a “good investment” opportunity.
• 25 percent purchased their second home to rent to others.
• 14 percent purchased their second home for tax benefits.
• 26 percent purchased their second home as a future primary residence.
• 80 percent purchased their second home because they believe now is a good time to purchase.

Original Link: http://www.tahoedailytribune.com/article/20100704/NEWS/100709931/1054

If you are thinking of buying or selling real estate in Garrett County or Deep Creek Lake, Maryland, call Jay Ferguson of Railey Realty for all of your real estate needs! 877-563-5350 Deep Creek Lake Info, Business Directories, Classified Ads, Events & more! Advertise on http://www.deepcreekalive.com/!

Deep Creek Lake Vacation Rentals - Names to Know

If you are considering renting your home or condo through a resort vacation rental company, here are a few names to know (alphabetically):

____________________

Long & Foster Resort Rentals
Sheila Kramer, manager
shelia.kramer@longandfoster.com
301-387-5832
http://www.deepcreekresort.com/
____________________

Offlake Rentals
Bob Orr, manager
bob@offlakerentals.com
301-387-8060
http://www.offlakerentals.com/
____________________

Railey Mountain Lake Vacations
Leigh Miller, Director of New Owner Relations
leigha@deepcreek.com
866-430-2885
http://www.deepcreek.com/
____________________

Taylor Made Rentals
Jodi Refosco, owner/manager
jodi@deepcreekvacations.com
301-387-5999
http://www.deepcreekvacations.com/
____________________

I have experience working with each and every one of these fine folks and they all do a great job renting properties. The reality is, you may be more comfortable with one vs. the other or your house may be a better 'fit'. You will want to ask questions about marketing/advertising programs, rates, market share, how much 'face-time' you can expect and how they handle issues with damages, deposits, maintenance & repairs. Also, ask to see your competition within the company. I recommend shopping around to see what works best for YOU, and your BUDGET. I assure you, with any of these contacts, they know their respective markets and will be a wealth of information.

If you are thinking of buying or selling real estate in Garrett County or Deep Creek Lake, Maryland, call Jay Ferguson of Railey Realty for all of your real estate needs! 877-563-5350

Ski Harbor at Deep Creek Lake - Community Profile

Ski Harbor is a lakefront condo & townhouse community at Deep Creek Lake. One of the coolest features of this community is the land it sits on - a 1,200+ feet peninsula on the shores of Deep Creek Lake. You can always find a quiet spot to sit and read, picnic or just think. Lots of different amenities: indoor swimming pool, sauna, tennis court, beach volleyball, basketball court (I've even witnessed street hockey!), swing sets, benches, canoe & kayak racks and more. There are dock slips available, lake views from almost anywhere on the property, 2 no-wake zones (great for kayaking & fishing), and acres of grassy, level lakefront common area. You have MEGA views of Wisp Ski Resort & the Bear Claw tubing park, as well as wide body views of McHenry cove from the point of the peninsula.

There are 2-4 bedroom condo's & townhomes available for sale or for vacation rentals. Its location near Wisp & on the water offers a 'rental friendly' location that is sure to impress your visitors, family & friends. You can get a 2 bedroom condo in the low $200k's!

Another great perk is a front row seat to fireworks. The Wisp always sets off the 4th of July fireworks from the Bear Claw tubing park, and I as I mentioned, the view is AMAZING! McHenry cove fills up with hundreds of boats, all lit up at night, and it's quite a sight to behold.

If you are in the market for a great lakefront vacation home or centrally located condo, Ski Harbor is one place that you will definitely want to explore!




Properties for Sale in Ski Harbor

Railey Realty Real Estate Blog - Ski Harbor

Ski Harbor News, Updates, Rentals

164 Susan's Way - GA7301782 - Deep Creek Lake Real Estate for Sale

I had a chance to preview this house for a client on Tuesday and took a few photos. The house has an amazing location, fronting on the Wisp Golf course. It has big views of the Wisp ski slopes, and is surrounded by water - community and golf course ponds. Very peaceful setting. It's a new listing from Dawn Monahan, and here is a link to some more information. It is priced at $450,000, which is a little less than the norm for an incoming producing property with these kind of views and amenities.

From 164 Susans Way

From 164 Susans Way

From 164 Susans Way

From 164 Susans Way

From 164 Susans Way

From 164 Susans Way

It is an established rental and would make a great vacation home or investment property!

If you are thinking of buying or selling real estate in Garrett County or Deep Creek Lake, Maryland, call Jay Ferguson of Railey Realty for all of your real estate needs! 877-563-5350

Vacation Home Sales Up But Investment Home Sales Down

Resort Life Blog:

While they dominated the housing market in 2009, first time home buyers weren’t the only ones taking advantage of low mortgage rates and affordable home prices.

According to recent survey by the National Association of Realtors®, the number of people buying second properties as vacation homes rose 7.9 percent to 553,000 in 2009 from 513,000 in 2008.

The market share for vacation homes rose to 10 percent, from 9 percent in 2008, and the median home price for a vacation home was 169,000 dollars in 2009, compared to 150,000 dollars in 2008.

NAR Chief Economist Lawrence Yun said the higher home prices reflects increased sales in higher priced markets like Florida and California, where home prices “became highly attractive for buyers over the past year.”

Half of vacation homes purchased last year were in the South, 21 percent in the West, 17 percent in the Midwest and 12 percent in the Northeast.

Read the rest of the article here.

If you are thinking of buying or selling real estate in Garrett County or Deep Creek Lake, Maryland, call Jay Ferguson of Railey Realty for all of your real estate needs! 877-563-5350

US Second-Home Sales Soar as Fractional Market Slumps

New research from the National Association of Realtors (NAR) shows vacation-home sales in the US rose 7.9% to 553,000 in 2009. Although well off the market peak of 1,067,000 sales in 2006, this represents the first time in three years the US vacation-home market has seen a lift.

Although the median sales price for vacation homes has increased to $169,000, up from $150,000 in 2008, this “may reflect increased sales in higher priced markets, particularly in areas of Florida and California where prices became highly attractive for buyers over the past year”, according to NAR chief economist Lawrence Yun.

Read the rest of the article here.

If you are thinking of buying or selling real estate in Garrett County or Deep Creek Lake, Maryland, call Jay Ferguson of Railey Realty for all of your real estate needs! 877-563-5350

Investors Are Buying Houses Again

March 23, 2010 by cloeffler

Good news for the second-home market.

More home buyers are snapping up properties with cash, a trend driven in large part by investors returning to the market after four years of falling prices around the country.
The share of home sales involving all-cash transactions was 26% in January, up from 18% a year earlier, according to the National Association of Realtors. The figures come from a survey of members about their most recent transactions. Many home buyers also are paying cash, but investors are largely using cash so they can avoid paying interest charges on loans and get a larger return on their investment.

Other NAR data also show a pickup in investment activity.

Home purchases made by buyers identified as investors climbed to 17% in January, up from 15% in December and 12% in November.

“We bottomed out in 2008, and in late 2009, prices stabilized and investors have returned,” says Mark Fleming, chief economist at First American CoreLogic. “It’s a different type of investor going after foreclosed properties and expecting to hold on for longer time frames.”

Many investors say they’re financing their purchases with cash on hand, rather than borrowing.

Evan Spinrod of San Francisco bought three rental properties in November and February and now owns 21 in four states. The rent he collects gives him an 8.5% annual return on his investment. Some of his homes are worth about $165,000. “I’m still looking,” Spinrod says. “You can’t build these houses for the prices they’re selling them. I’ve always seen that the real wealth was in real estate. People have been sitting on cash, and there’s no interest from the bank (to pay).”

Leonard Baron, a real estate professor at San Diego State University, has bought three homes with cash in the

San Diego area in the past eight months, ranging in price from $100,000 to $130,000. He rents the properties.

Baron says now is an ideal time to make such purchases. “It’s because prices have dropped so much and rents really haven’t,” he says. “The deals were unbelievable.”

Some Realtors also say they’re seeing increased investor activity.

“Flippers, rehabbers, investors … are, in fact, buying,” says Lisa Johnson, with Coldwell Banker Residential Brokerage in Haverhill, Mass. “I’m getting builders who have stopped building and are instead buying up condos and single-family homes to fix them up and sell them. It’s a neat change I haven’t seen in four years.”

All-cash purchases also reflect a growing number of investors buying higher-end properties without credit, says NAR spokesman Walter Molony. That’s a sign that some investors see real estate prices as having nowhere to

go but up. All-cash offers give buyers a competitive edge on rival offers – even higher ones – that are dependent on financing. Cash deals can close faster and are less likely to fall through.

“You have to have cash to be able to close quickly and have negotiating power. Cash is king,” says Tanya Marchiol, president of Phoenix-based Team Investments, which buys about 70 properties a month with cash it raises from investors. “We do want to flip it or generate cash flow (through renting it out). Now is the time to buy for cash flow. We know the market is going to rebound.”

Some investors say the current real estate market is an ideal time to buy because homes are so low priced, they are bound to hold their value.

That’s the philosophy of Jim McClelland of Tinley Park, 111.

He is buying about 120 to 150 entrylevel homes in the Chicago area this year and owns a total of about 300 properties.

He says now is a good time to buy because properties going into foreclosure are no longer just one-bedroom, fixer-uppers but nicer, split-level brick homes with more bedrooms that will probably appreciate to a higher value.

That’s because so many prime-rate borrowers who bought more expensive homes have gone into foreclosure.

He puts about $60,000 into upgrading a property, then rents it out.

“Do I think this year will be a better time to invest than in 2009? Yes,” McClelland says. “There have always been foreclosures. The difference now is you get a better home for the same kind of money. You’re sitting on better inventory. People get into real estate for financial independence. It’s not a quick fix. It appreciates. It doesn’t happen overnight.”

By Stephanie Armour USA TODAY



If you are thinking of buying or selling real estate in Garrett County or Deep Creek Lake, Maryland, call Jay Ferguson of Railey Realty for all of your real estate needs! 877-563-5350

Spotting trends in cottage sales and vacation rentals

Spotting trends in cottage sales and rentals
March 22, 2010 by cloeffler

Looking for a fresh twist on the residential real estate story? There is always the second-home specialty as reported in this article.

We’re 10 weeks out from Memorial Day – summer’s unofficial start – so how about a look at the vacation home and cottage niche? You can take the consumer tack, illustrate how this market reflects your region’s economy – or both – for a readable and picturesque package.

For many cash-strapped homeowners, juggling two mortgages isn’t quite as easy as it seemed to be earlier this decade. Many cabins and cottages are on the block, but it’s clearly a buyer’s market, with inventory up and median prices dropping by around 25 percent. The National Association of Realtors reported a year ago that sales of second homes had dropped 30 percent from 2007 to 2008. An update to the trade group’s Investment and Vacation Home Buyers Survey is due out in a few weeks. Meanwhile, the association’s “field guide” to the second-home market includes past articles and other resources that will help you organize your feature.
Check up on the cottage and cabin scene in your region’s resort areas. Sources include sellers, real estate agents, county assessors. Are people in financial straits failing to pay property taxes on vacation homes? What’s the foreclosure situation? Talk to do-it-yourself sellers who are advertising in classifieds – what gimmicks are they using to sweeten the deal? Are rental rates dropping?

Look for unusual tactics – I recently noticed a half-page ad one homeowner placed in my local coupon-clipper publication; it touted a single lavish vacation property hundreds of miles away.

Cottages by their nature are heavily invested with nostalgia and emotion; keep an eye out for interesting human interest stories, such as multi-generation cabins being sold off or abandoned. Also check into the economic effect on area businesses; fewer weekenders translates to less trade at mom-and-pop establishments that depend on seasonal business. How hard has this vicious downward spiral hit your state’s recreational spots?

Some industry sources say cheap prices and plenty of inventory are attracting investment buyers who plan to flip or rent out vacation properties.

And others note that homeowners who normally keep the cottage in the family are instead leasing out their second homes in a bid to boost cash flow or at least make the property pay its own way.

HomeAway.com, which operates several vacation-rental Web sites, says some markets are showing double or more the number of listings compared to a year ago. They’re up 178 percent in Telluride, Colo., for example, and 206 percent in Sunset Beach, N. Carolina, according to Victor Wang of HomeAway’s media relations staff.

While HomeAway doesn’t disclose overall listing trends for competitive reasons, Wang said generally they will try to assist journalists with data for specific markets and regions. He also has data about investment properties and buyer surveys.

If you’re focusing on rentals, in addition to local listing services and classifieds, try Vacation Rentals by Owner – it boasts 130,000 listings and very easy-to-use interface with region-specific state maps, making it a great source of “real people” for your stories.

By Melissa Preddy on Mar 22, 2010


If you are thinking of buying or selling real estate in Garrett County or Deep Creek Lake, Maryland, call Jay Ferguson of Railey Realty for all of your real estate needs! 877-563-5350

Tax Deductions for Vacation Homes - Deep Creek Lake & Garrett County

Tax Deductions for Vacation Homes
March 12, 2010 by cloeffler

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Tax deductions for vacation homes vary greatly depending on how much you use the home and whether you rent it out. You can rent out a vacation home for as many as 14 days per year without paying taxes on your rental income.

A vacation home offers a break from the daily grind, but it can also offer a break from taxes. The IRS allows most owners to lower taxable income by taking tax deductions for vacation homes. What’s deductible depends on a number of factors, especially how often you visit and whether you allow renters.

Don’t limit your notion of a vacation home to a beach cottage or a mountain cabin. Even RVs and boats can count, as long as there are sleeping, cooking, and bathroom facilities. Tax deductions for vacation homes are complex, so consult a tax adviser.

Is your vacation home a vacation home?
If you bought your vacation home exclusively for personal enjoyment, you can generally deduct your mortgage interest and real estate taxes, as you would on a primary residence. Use Schedule A to take the deductions.

The IRS even allows you to rent out your vacation home for up to 14 days a year without paying taxes on the rental income. You might be able to deduct any uninsured casualty losses too, though you can’t write off rental-related expenses. If the home is rented for more than 14 days, you must claim the income.

Now, if you own what you consider a vacation home but never visit it, or only rent it out, other tax rules apply. Without personal use the home is considered an investment or rental property by the IRS. Time spent checking in on a house or making repairs doesn’t count as personal use.

Tax deductions for rental owners
As an exclusive rental property, you can deduct numerous expenses including taxes, insurance, mortgage interest, utilities, housekeeping, and repairs. Even towels and sheets are deductible. Use Schedule E. You can also write off depreciation, the value lost due to the wear and tear a home experiences over time.

Treat the rental property like a business, says Mark Steber, chief tax officer at Jackson Hewitt Tax Services. Keep detailed records and maintain a separate checking account. Figure you’ll spend a couple of hours a week, on average, over the course of the year managing the property.

To maximize deductions you need to be actively involved in the rental property. That means performing such duties as approving new tenants and coming up with rental terms. You also need to own at least 10% of the property. See IRS Publication 527 for details.

If your adjusted gross income is $100,000 or less you can deduct from your taxable income up to $25,000 in rental losses—that is, the difference between your rental income and your rental expenses. The deduction gradually phases out between an AGI of $100,000 and $150,000. You may be able to carry forward excess losses to future years, or use losses to offset taxable gains when you sell.

Expenses can add up. HOA fees (average: $420), routine maintenance costs ($360), and six months’ worth of utilities ($1,100) alone total nearly $2,000. By deducting $2,000 from taxable income of $100,000, a married couple filing jointly would cut their tax bill by $488.

Mixed use of a vacation home
The tax picture gets more complicated when in the same year you make personal use of your vacation home and rent it out for more than 14 days. Remember, rental income is tax-free only if you rent for 14 days or fewer.

The key to maximizing deductions is keeping annual personal use of your vacation home to fewer than 15 days or 10% of the total rental days, whichever is greater. In that case the vacation home can be treated as a rental, meaning you get the same generous deductions. To avoid going over the 10% limit, essentially you shouldn’t use your vacation home more than one day for every 10 days you rent it.

Make personal use of your vacation home for more than 14 days (or more than 10% of the total rental days), however, and your deductions may be limited. If your rental income is less than your rental expenses, for example, you can’t use the loss to offset other sources of income. There’s a worksheet that determines which expenses you can carry over to the following year.

Another big blow: The IRS requires you to divide expenses between personal use and rental use. Let’s say you have a vacation home you personally use for 25 days and rent for 75 days. That’s 100 total days of use. You can only write off 75% of the expenses as rental expenses—75 rental days divided by 100 total days of use works out to 75%. Some of the personal expenses, such as mortgage interest and real estate taxes, may be deductible on Schedule A.

IRS closes tax loophole
A popular strategy used by owners of vacation homes to avoid paying capital gains on a sale was to convert a vacation home into a primary residence. This was accomplished by living in the home for two years out of the previous five before selling. By doing so a gain on the sale of up to $250,000 for single filers ($500,000 for married filing jointly) was tax-free.

The IRS hasn’t done away with the cap-gains exclusion, but it is closing the loophole for vacation homes. Starting in 2009, you have to pay regular cap-gains taxes on the portion of the gain that’s equivalent to the time you used the home as a vacation home after 2008.

Let’s say on Jan. 1, 2010, you move into a vacation home you bought on Jan. 1, 2002. Two years later you qualify for the cap-gains exclusion and decide to sell. You’d pay regular capital gains on 10% of the gain because in 2009 the home was a vacation home subject to the new IRS rules. The other nine years—2002 to 2008, when the old rules applied, and 2010 to Jan. 1, 2012, when the home was used as a primary residence—qualify for the exclusion.

This article provides general information about tax laws and consequences, but is not intended to be relied upon by readers as tax or legal advice applicable to particular transactions or circumstances. Readers should consult a tax professional for such advice, and are reminded that tax laws may vary by jurisdiction.

Donna Fuscaldo has written about personal finance for more than 10 years at the Wall Street Journal, Dow Jones Newswires, and Fox Business. She one day hopes to own a vacation home in the Catskills of New York.

http://www.houselogic.com/articles/tax-deductions-vacation-homes/


If you are thinking of buying or selling real estate in Garrett County or Deep Creek Lake, Maryland, call Jay Ferguson of Railey Realty for all of your real estate needs! 877-563-5350

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If you are thinking of buying or selling real estate in Garrett County or Deep Creek Lake, Maryland, call Jay Ferguson of Railey Realty for all of your real estate needs! 877-563-5350

Commissioners retract proposed hotel/motel tax increase bill

Jay's note: Even though the legislation would not have REQUIRED a rate increase, it still gave the commissioners authority to raise it at any time. I agree with Nancy Railey's take on this, as every dollar spent would be one less dollar that is spent on local goods, dining, souvenirs, and typical 'fun' things you do while on vacation. Just like everyone else, the commissioners will have to learn to not spend so much money and budget during these lean times. $1.5 million (what they currently receive) is a pretty good chunk of change for merely an accomodations tax.

Megan Miller
Cumberland Times-News

OAKLAND — The Garrett County Commission retracted one of its legislative requests for the 2010 session Thursday, citing concerns by local businesses that the measure would negatively impact the county’s tourism industry.

The commission had requested legislation that would have enabled it to increase the hotel rental tax from 5 percent to a maximum of 8 percent. That increase would not have been implemented all at once, but in increments and as needed, said County Administrator Monty Pagenhardt.

"Back in November when we presented our legislative list to Delegate (Wendell) Beitzel and Sen. (George) Edwards, the plan was to increase the tax to 6 percent for fiscal 2011, which would have generated more than $300,000 for the county," Pagenhardt said. The money would have been used to fund economic development and tourism, as required by state statutes, he explained.

But Pagenhardt said the commission unanimously agreed to retract the legislative request after hearing concerns from businesses that the measure would hurt the county’s tourism industry, driving down income from vacation rentals.

“The commissioners reviewed data presented by rental companies, and just decided it wasn’t the right time to do it,” Pagenhardt said.

At the Nov. 17 meeting where the commissioners presented their legislative wish list, Nancy Railey of Railey Mountain Lake Vacations gave a presentation opposing the tax increase. Railey told the commissioners at that time that visitors would probably still travel to Garrett County if the tax was increased, but each dollar they had to spend on taxes would be a dollar they wouldn’t spend on local goods and services.

It’s the second year in a row the enabling legislation has been requested but not passed. It was introduced in the 2009 General Assembly but died in committee because of what Beitzel said was an administrative mistake in Annapolis.

For now, the hotel rental tax rate will remain at 5 percent, the highest it can go under the existing legislation. The tax currently brings in about $1.5 million per year to the county.


If you are thinking of buying or selling real estate in Garrett County or Deep Creek Lake, Maryland, call Jay Ferguson of Long & Foster Real Estate for all of your real estate needs! 877-563-5350