Residential Investments vs. Second Home

We frequently get asked about residential investments vs. second homes. In most cases our borrower’s are looking to purchase a second home that they would potentially rent, but have for their personal use most of the time.

The answer is that lenders require you to state how you will be using the home. You must choose primary, second home, or
investment property; lenders do not allow mixed occupancy. A second home is not income from a lenders perspective; you either do it as an investment property or a second home.

The majority of lenders offer the best rates for investment properties with 25-30% down however; some lenders allow you to put as little as 20% down but the rate will certainly be higher. Second home rates tend to be about ½% lower than investment properties.

Often times our borrowers will buy a home as a second home or even a primary and then change the occupancy in future years. This is a possibility, however if you try to refinance a home that you bought as a second home and you have rental income on your tax returns it will be considered an investment property, even if it is only a small percentage of usage as a rental.

If you have any questions, please don’t hesitate to give us a call!

 

Area Market Stats

FORE our schools – and you!

ON SALE NOW!!
It was a fabulous winter – and you can still ski the backcountry and Squaw and Alpine on in to June.  But for most of our area, spring has sprung.  Lawn mowers, instead of snow plows, are the sounds that will soon be filling the air.  And NOW is the time to get your Golfing for Schools card.  Most courses will be open between mid-May and mid-June.  The cards are fully transferable and make great gifts – clients, Mother’s Day Father’s Day, graduation, etc. Just $325 affords you one round of 18 holes of play at seven area courses – Coyote Moon, Gray’s Crossing, Old Greenwood, Tahoe Donner, Resort at Squaw Creek, Northstar and Tahoe City.

Tahoe Truckee Excellence in Education Foundation is a non-profit foundation that enhances public education and strengthens the student learning experience within the Tahoe Truckee Unified School District. Each year, the Foundation partners with local businesses and the community to raise money and provide over $250,000 in classroom grants, resources, and partnerships to benefit students and teachers in a school district that encompasses 12 schools in a geographic area of 720 square miles. The 2016-17 school year marks the Foundation’s 30th year of supporting local educational efforts.

For more information or to purchase, follow the link above.

Propane Problems

With more than 20 feet of snow in some areas of eastern Placer County and Donner Summit, snow loads on residential propane tanks are at an extreme – and pose possible risk of leaks and/or explosion.

In 2011, when similar snow loads were a concern, propane leaks in the Serene Lakes area were widespread, triggering evacuations and the disconnection of power to homes. One leak caused an explosion that completely destroyed a home.

“Snow loads on roofs and decks are a problem throughout the Sierra right now, and everyone should take care to clear those. But the loads on propane tanks are an especially serious concern,” said Placer County Office of Emergency Services Manager John McEldowney. “Residents should dig out and inspect their tanks as soon as they possibly can and call 911 if they smell any gas at all.”

In cooperation with local fire districts, Placer County has issued an emergency alert for the greater North Lake Tahoe area west to Cisco Grove using the Placer Alert system to warn residents of the risk and urge quick action to remove snow from tanks, gas lines and regulators.

Access to all types of propane tanks should be cleared, including underground, sheltered and stand-alone tanks. Residents should contact the Placer County Department of Environmental Health office in Tahoe City at 530-581-6240 before digging into the ground. Residents with questions about safely clearing or de-icing any of their tank components should contact their propane provider.

Placer County encourages all residents to sign up for the Placer Alert emergency alert system to receive the fastest possible notification of dangers near the places they care about – by text, email or phone. Sign up at www.placer-alert.org 

LIGHTS! CAMERA! ACTION!

2016logofinalcolor2As many are aware, a number of films have been made in the Tahoe area over the years – from a Charlie Chaplin silent to “The Godfather” Hollywood and Tahoe have had a long history. Many Hollywood royalty have graced the slopes and boated on the clear blue waters of our area since Hollywood began.  And now, a new partnership is emerging between the two.  Our area is now the host site for a very up and coming film festival. 

The Tahoe Film Festival, now in its second year,  has scored a number of top tier films – even award winners from film festivals all over the world.  It will also see visits by a number of directors and actors from the films. The festival begins today, December 1st , and runs through this weekend, with screenings in Incline Village and at the Village at Northstar.  Twenty-three films will be screened over the course of the four days.  The festival supports the local non-profit, Sierra Watershed Education Partnerships (SWEP), and while many of the films focus on the environment, there are also a wide range of award winning independent films to view.

Films include “Before the Flood”, an environmental documentary presented by National Geographic magazine, produced by Martin Scorsese, and featuring Leonardo DiCaprio, Elon Musk, and others.  There are also award winners, such as “Certain Women”, starring Kristen Stewart and Laura Dern, winner of the Best Film award at the London Film Festival, and “When Two Worlds Collide”, a Sundance Film Festival winner. 

SWEP partners with teachers and community organizations to bring messages of conservation and environmental stewardship to the classroom. 

This is a fabulous opportunity for Tahoe locals and visitors alike to catch an early glimpse of films that rarely make an appearance in our local theaters.  For a complete list of films and showings, and to purchase tickets, visit the Tahoe Film Fest site.

See you at the movies!

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