Confessions of a Second-Time Home Buyer in Breckenridge

Dishon Lutz

10/10/22


Crisp mountain air and breathtaking scenery allure locals and tourists to Breckenridge, no matter the season. Experience whitewater rafting, mountain biking, hiking all summer, skiing, snowmobiling, and snowboarding all winter. What else is there to consider before buying a vacation home in Breckenridge for the outdoor enthusiast?

Well, as it turned out, plenty!

While it’s tempting to dive headfirst into purchasing Breckenridge real estate after a memorable vacation experience, investing in this magnitude without careful planning could be a foolish disaster. Consider these questions when deciding whether or not to purchase a second home in Breckenridge.

Is it the right time?

Taking on a second mortgage is a serious financial consideration.  Breckenridge real estate is highly coveted and limited in quantity in this small town, both of which are evidenced by housing costs. Along with the mortgage, interest rates are typically higher with second homes, as is insurance on vacation properties. By adding a vacation home, you will be doubling your living expenses, maintenance needs, and more.

Are you in a good position to take on such a burden now? Consider other major life events in your family that may impact your ability to enjoy the vacation home. Are you able to get away from your job or work remotely? Do you have obligations to care for aging parents or a child about to leave home for college…or marriage?  As much as possible, it will behoove you to consider all the factors that impact your ability to comfortably fund, maintain, and enjoy a second home.

The housing market in Breckenridge, as in so many other parts of the country, has been strongly favorable to the seller since 2021.  In recent months, however, there have been some noticeable shifts in the market as inflation and rising interest rates have slowed down the pace of sales. The average listing prices for single-family houses dropped abruptly in the spring but have steadily increased since April, with the average price per square foot currently at $915. Condos for sale in Breckenridge have shown a slightly different pattern, with prices peaking in March 2022 and slowly decreasing each month since.  As of August, condos are listed at $998 per square foot. Keeping an eye on Breckenridge real estate trends will help maximize your investment.

Is Breckenridge the right place?


It’s easy to fall in love with a place when on the heels of a wonderful vacation experience.  Clearly, there is so much to love about Breckenridge — the outdoors, the sports, the charming town. Yet, have you spent enough time in Breckenridge to really get to know the community, your potential neighbors, and the local culture? Let’s not forget that Breckenridge is a tourist town, so you must consider your willingness to tolerate weekend and seasonal visitors. The times you want to be in Breckenridge will most likely coincide with the plans of thousands of others. Attractions and restaurants will require reservations and longer wait times. It helps to plan ahead with reservations for everything and to remember that the crowded ski slopes or congestion in town are signs of a healthy, thriving community.

Now reflect upon your travel logistics from your most recent visit to Breckenridge. Did you have long flights across the country? An arduous ten-hour mountain drive? As eager vacationers, we may be able to tolerate an incredible amount of work and expense in anticipation of what we will get to experience. Unfortunately, if we strive to get to our vacation home every couple of months, the travel and preparation may become a grating hassle. If the bulk of your frustrations comes from locating/renting the gear for your outdoor adventures or the size and quantity of winter weather gear, those packing hassles can be eliminated by owning your own place. Simply store what you need to enjoy Breckenridge in the vacation home; all you’ll need to pack is an overnight bag.

Does a vacation home suit your family’s lifestyle?


The lifestyle consideration can be tricky, because it is so difficult to separate reality from our ideals. We may have visions of the family gathering for Christmas and summer vacations each year. We can imagine all the possibilities of game nights in front of a roaring fire, nature hikes, and introducing the next generation to outdoor sports. But is this realistic? How often have we gathered as a family over the last five years? Your family’s lived experience of vacationing, spending time together, and previous holidays are reliable indicators of how the vacation home will be used.

Reflect carefully on the type of property that suits your needs as well. A Breckenridge condo for sale will come with built-in amenities, groundskeeping services, common areas, and possibly a maintenance team to take care of repairs while you are away. A single-family home, while typically more spacious and private, will be your responsibility to maintain, whether you do it yourself or contract workers for maintenance and repair needs. Do you have the time and availability to attend to these needs? Do you want to spend a portion of your vacation time attending to the tasks of home ownership?

Is a second home a good investment?

Breckenridge has been a popular vacation destination for over fifty years, with over one million skiers alone visiting the area in a single season. Also, outdoor recreation has never been more appealing to the population at large than in recent years. These factors suggest that owning a property you can rent out when you cannot be in Breckenridge will be a profitable investment for you. Just remember the following:

  • Rental income is not guaranteed. Don’t base your finances upon it.
  • Rental properties have several additional considerations, including securing a property management company, a reliable cleaning service, and renter’s insurance.
  • Taxes are different for rental properties, as are your eligible deductions. Speak with your financial advisor to learn how you will be impacted during tax season.
  • Tourists will likely want to rent your condo while you would like to be there.  Will you have the flexibility to visit in off-peak times or turn down renters so that you can enjoy your property?

Is your answer “Yes!”?

As you’ve reflected upon each of these questions and carefully considered purchasing a second home in Breckenridge, are you responding with an enthusiastic “Yes!”? If so, it’s time to learn more. Dishon Lutz, an experienced agent with Real Estate of the Summit, will gladly answer your questions about Breckenridge real estate and guide you through each step of the home-buying process. Contact him today to get started!



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