How to Boost Your Retirement Goals by Buying a Home in Santa Fe
Recently I learned that the City of Santa Fe has met its limit of 350 short-term rental permits issued. Last June I checked on the status for potential investors and was told that there were still about 20 permits available. Today there is a waiting list of 20!
The good news is that some owners of homes in Santa Fe who currently have permits have probably not renewed them when the annual fees were due on March 15, at which time those on the waiting list will get their opportunity to rent their homes on a short-term basis while complying with the City of Santa Fe’s Short Term Rental Ordinance. The City will know if any permits are available next week.
From an investment standpoint, I believe that there is added value in a home with a permit in place. For instance, if you are planning to retire within the next few years, consider purchasing a Santa Fe home at today’s prices and historically low interest rates, rent out the property on a short-term basis (so that you can block out dates for use as your own vacation retreat), and upon retirement, you’ve gained:
- equity in the home
- revenue to apply to your mortgage
- …and a vacation retreat
……all in one broad stroke. Voila!
There are several homes on the market with short-term rental permits already in place. Short-term permits run with the property, as opposed to the owner, so paying the annual fee of approximately $175 to renew the permit is not a bad deal.
Long-term rentals (30+ days) do not require a permit.
Key factors for long and short-term rentals is location, the ‘right’ property– (size, amenities, etc), and a good property management company. Something to consider before buying a home in Santa Fe that you plan to rent temporarily is what is in demand. As an example, there is more demand for 2 bedroom/2 bath homes vs 1 bedroom/1bath for rental purposes, as well as primary residences.
For more information about homes currently on the market with short-term rental permits in place, please don’t hesitate to contact me.
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