We have finally received some snow this past week in North Lake Tahoe. The ski areas are reporting snow depths up to 20 inches. A welcome addition to the very light snow conditions from November through January.
Property listing inventories are increasing and prices are moving up in condos but steady for single family homes. Median price for Condos now stands near $630,000 and homes above 1.5 million.
It does seem that its a buyer’s market for homes and a seller’s market for condos. The new Federal tax law limiting real estate tax deduction to $10,000, which includes property taxes, may very well dampen the market when considering the purchase of a second home.
Analyze your individual situation before buying a primary or second home. But don’t let only taxes determine your buying decision. Consider renting that second home and deduct property taxes and other rental expenses against the income the rental produces.
Talk to your tax professional to see if owning a rental makes sense for you.