If you’ve ever wanted to own a second home in the fabulous resort town of Jackson Hole, Wyoming, now is as good a time as any to get into the market.
While the median home price has practically doubled during the pandemic, it stands to reason that homes for sale in Jackson Hole, Wyoming, will stay high because of limited inventory and the popularity of the area. It has some of the best skiing in the west and is the southern gateway to the natural splendor of Grand Teton and Yellowstone National Parks.
Owning a second home in Jackson Hole not only provides a vacation home, but you can rent it out when you’re not using it to help pay for the additional costs of a second mortgage and other expenses you’ll have to pay for another home.
According to Realtor.com, the median listing price of Jackson Hole homes for sale was $2.1 million in July 2021, a breathtaking increase of 43.2% compared to the same period last year.
For those who could afford it, Jackson Hole was an extremely popular place to ride out the pandemic when it was at its height. With uncertainty surrounding the delta variant, the Wyoming resort town could remain desirable to those looking to escape the hustle and bustle of big cities in favor of a rustic town of about 10,000 residents perched at 6,327 feet elevation.
The first step to buying a second home in Jackson Hole is to team up with an experienced real estate agent who knows the ins and outs of the real estate market in the community and in some of the developments in the surrounding area. A seasoned pro understands pricing trends and will help you strategize on how to get your offer accepted.
Among the Jackson Hole real estate available are single-family homes, condos, townhouses, ski-in, ski-out homes, golf estates, and horse properties.
Here are some aspects of owning a second home in Jackson Hole.
Using it as a vacation home
Before you undertake what could be the biggest purchase of your life, you should research whether a second home in Jackson Hole makes sense, both practically and financially.
If you visit the area often, it makes perfect sense to shop for Jackson Hole homes for sale. You may find yourself visiting the area several times a year, both in summer and winter. If you ski, there are three world-class resorts in the surrounding mountains. And there is just as much to do in the summer when the wonderlands of Grand Teton and Yellowstone are open at full capacity.
There are also many other activities to do in the summer, including whitewater rafting, hiking, mountain biking, golf, and tennis.
Owning a second home in Jackson Hole will save you the cost of a hotel room and eating all your meals out. You can also host other family members and friends to make vacations truly memorable. If you keep your second home long enough, you can eventually retire there.
Renting out your home
One of the primary advantages of owning a second home in Jackson Hole is that you may be able to rent it out when you are not there. As part of your research prior to buying homes for sale in Jackson Hole, find out what you can expect to earn from renting out your second home, either short-term or long-term, depending on how often you plan to be there. Depending upon your neighborhood, there are rules for short-term rentals — be sure to find out in your home’s location allows it.
Figure out how much the rental income will offset what it will cost you to buy and maintain the home. The expenses of owning a second home include a mortgage, homeowners insurance policy, and property taxes, as well as the cost of maintenance and any unexpected repairs that might be needed.
How you use your second home in Jackson Hole will also have tax implications. If you use your second home as an investment property, you must report all rental receipts as part of your taxable income. However, if you rent out a second home only 14 or fewer days a year, that rental income will be exempt. Be sure to check with your tax advisor to get advice on how this will affect you.
According to IRS rules, if you use the second home as an investment property, you might be able to deduct costs incurred in renting and maintaining the property. If you rent out a second home for 14 or fewer days, you will not be able to deduct any of these expenses.
If your Jackson Hole home is going to be used mainly as a second residence, you’ll be able to deduct mortgage interest and property taxes. Because of that, it’s advised that you don’t exceed the 14-day rental threshold.
If you intend to rent out your second home for any length of time and you don’t live in the area, you’ll have to hire a property management firm to handle all aspects of leasing and maintaining the property. That, of course, will cut into your profits.
If you are planning to buy Jackson Hole real estate to use as a second home in 2021, contact experienced realtor Carol Linton for a smooth transaction and excellent customer service.