Sales of investment and vacation homes* jumped in 2011, with the combined market share rising to the highest level since 2005, according to the National Association of REALTORS®.

NAR’s 2012 Investment and Vacation Home Buyers Survey, covering existing- and new-home transactions in 2011, shows investment-home sales surged an extraordinary 64.5 percent to 1.23 million last year from 749,000 in 2010. Vacation-home sales rose 7.0 percent to 502,000 in 2011 from 469,000 in 2010. Owner-occupied purchases fell 15.5 percent to 2.78 million.

Vacation-home sales accounted for 11 percent of all transactions last year, up from 10 percent in 2010, while the portion of investment sales jumped to 27 percent in 2011 from 17 percent in 2010.

NAR Chief Economist Lawrence Yun said investors with cash took advantage of market conditions in 2011. “During the past year investors have been swooping into the market to take advantage of bargain home prices,” he said. “Rising rental income easily beat cash sitting in banks as an added inducement. In addition, 41 percent of investment buyers purchased more than one property.”

This article was written by NAR,  National Association of Realtors®

If you would like to read the article in it’s entirety contact Ken 989.240.0970 for details.

Listings Added Daily

Pristine waters with solid sandy lake bottom describe the beauty of Burt Lake. Right now there are listings of every price and type that are sure to interest buyers in all price ranges. Currently there are 32 property listings priced from $130,000 to $1,895,000.

If you are looking for waterfront Foreclosures you will not find any on Burt Lake at this time. If Foreclosures are what you are looking for contact me  @ 989.240.0970 to have a custom search notice sent to your email In Box as Foreclosures arrive on the market.

Listing prices have adjusted downward over the past years approximately 25-30 percent. Buyers are looking and making offers this spring as some of the triggers that induce people to purchase are boldly presenting themselves.

- Property taxes lower

- Mortgage rates down

- Savings in the bank not worth much

- Sellers are motivated

See All Higgins Lakefront Listings Right Here

Foreclosures are coming into Vogue on waterfront properties. Traditionally lakefront Foreclosed homes rarely come on the market. The market may change rapidly this year and you will want to keep posted and see if more Foreclosures hit the market on Higgins Lake. I can send you the Foreclosure listings as they hit the market. Contact me for your personal real estate search sent immediately to your email in box! As of today there are no Foreclosures on the Higgins Lakefront market, BUT that may change any time!

Not all the good deals come in the way Foreclosures. What we call OLD Money/Property assets are located on Higgins Lake and as  parents pass away families are many times ready to sell at discounted prices to get the estate settled. Because it is Old Money many times the owners have NO mortgage on the property so they can sell for whatever price they desire!

Remember one of the best strategies for Buyers is to be engaged in the offering process on a regular basis. If you are not successful the first time, the odds are in your favor that  if you are watching the market daily and are ready to jump on the deals when they come you will buy the lakefront you want someday.

As of today there are 33 waterfront listings on the MLS at Higgins Lake. The number of days on the market range from 7-1300 days! The prices range from $118,900 to $935,000. Call me to find out why the property that has been on the market for 1300 days probably has not sold.

Check out all the listings  Currently there are 24 listings offered for sale on Otsego Lake. Check my web site regularly as there are properties added often as the listing season heats up.

Otsego Lakefront properties have no foreclosures offered as of today, but more may be added soon. If foreclosures are what interests you contact me and I can send foreclosures to you when they come on the market, be the first to be aware of these unique properties.

As I drove around Otsego Lake this week I  saw the various choices that are available for purchase, there are properties in everyone’s price range.

Otsego Lake is located in the middle of northern Michigan’s water wonderland paradise. Otsego Lake is approximately 2000 acres  in size and offers all the recreational sports;  swimming, water skiing, pontooning, fishing, sail boating and the clear water is very inviting.

Take a look   and see the details of this gorgeous lakefront home. Priced at the top end of Houghton Lakefront living this home is sure to please those who love to entertain and enjoy the utmost of recreation opportunities!

Currently there are 67 lakefront listings on Houghton Lake for sale. Priced from $87,900 to 799,000.

4 of the listings are Foreclosures! More and more people are looking into purchasing foreclosed property. Contact me for your custom report with listings  sent to your email in box daily as properties hit the market.

Priced at the top end of listings on Lake Margrethe this property is one of 5 listings currently offered for sale. Check it out and see why gorgeous homes like this are still selling.

Lake Margrethe is a beautiful 2000 acre lake with properties priced from $199,000 to $845,000. It is an all sports lake offering recreational opportunities!

Currently there are no Foreclosures for sale on Lake Margrethe. If you are interested in finding waterfront Foreclosures contact me for a custom search sent daily to your inbox as they hit the market.

Click here to see Waterfront listings

It’s the month of March and buyers are keeping me busy looking at lakefront real estate. The feeling from these people is that the bottom has come and the time to buy is this spring! In addition to that the cost of owning a second home is the best deal in decades.

- Assessors have tax assessments down

- Mortgage rates are the lowest in decades

- Listings inventories are still good

- Sellers are motivated

Here is an illustration of how motivated some sellers are. Last weekend I showed a property on Mullett lake that was offering a $10,000 selling bonus!

Which lake are you interested? Just click on my home page and see the “Property Listings” drop down arrow. You will find tons of property listings to meet your property search desires.

To illustrate how you can save money when you purchase your recreational second home, go to my blog and look at the recent article I wrote called “Financial Power Play”

41 feet of frontage on northern Michigan’s premier Mullett Lake located on the east side for gorgeous sunrises. This property may not last long. Originally priced at $328,000 this 2500 SF house is sure to make a family happy with this sandy beach and spacious views of the lake.

Call Ken for details 989-240-0970 or email kencarlson@kencarlsonrealty.com

I bet there are vacation home buyers that are trying to decide to pull the trigger on purchasing this year. It’s the best time right now to buy! Inventories of lake, river and canal homes are still plentiful and sellers are motivated. If you have the cash, put your money to work, banked money is returning low CD rates. Property taxes are down to the lowest rates in decades. If you have a portion of the purchase price, say 20%  or more down let a bank mortgage @ 3-4% facilitate the sale.

Now for the rest of the story. You can either vacation in your second home regularly or use it part time and use it as a vacation rental the balance of the year. What a great way to produce relaxing times for your family and create wealth long term. Here is  another reason why waterfront real estate is a great “Financial Power Play”. Waterfront property is a limited resource compared to non-waterfront property so the value will always be a better investment. Many folks would prefer to retire or vacation on the water.

 Now For The Power Play Details On Taxes

Tax deductions for vacation homes vary greatly depending on how much you use the home and whether you rent it out. You can rent out a vacation home for as many as 14 days per year without paying taxes on your rental income.

 The IRS allows most owners to lower taxable income by taking tax deductions for vacation homes. What’s deductible depends on a number of factors, especially how often you visit and whether you allow renters. Tax deductions for vacation homes are complex, so consult a tax adviser.

Is your second home a vacation home?
If you bought your vacation home exclusively for personal enjoyment, you can generally deduct your mortgage interest and real estate taxes, as you would on a primary residence.

The IRS even allows you to rent out your vacation home for up to 14 days a year without paying taxes on the rental income. You might be able to deduct any uninsured casualty losses too, though you can’t write off rental-related expenses. If the home is rented for more than 14 days, you must claim the income.

Now, if you own what you consider a vacation home but never visit it, or only rent it out, other tax rules apply. Without personal use the home is considered an investment or rental property by the IRS. Time spent checking in on a house or making repairs doesn’t count as personal use.

Tax deductions for owners that rent their property
As an exclusive rental property, you can deduct numerous expenses including taxes, insurance, mortgage interest, utilities, housekeeping, and repairs. Even towels and sheets are deductible.  You can also write off depreciation, the value lost due to the wear and tear a home experiences over time.

Treat the rental property like a business keep detailed records and maintain a separate checking account. Figure you’ll spend some time weekly, depending on how often you rent the property over the course of the year managing the property. Hiring a vacation property manager may work for you. Property managers charge from 10 to 20 %.

To maximize deductions you need to be actively involved in the rental property. That means performing such duties as approving new tenants and coming up with rental terms. You also need to own at least 10% of the property. See IRS Publication 527 for details.

If your adjusted gross income is $100,000 or less you can deduct from your taxable income up to $25,000 in rental losses—that is, the difference between your rental income and your rental expenses. The deduction gradually phases out between an AGI of $100,000 and $150,000. You may be able to carry forward excess losses to future years, or use losses to offset taxable gains when you sell.

Expenses can add up. Here are some examples: HOA fees, routine maintenance costs, and  utilities. By deducting $2,000 from taxable income of $100,000, a married couple filing jointly would cut their tax bill by $488.

Mixed use of a vacation home
The tax picture gets more complicated when in the same year you make personal use of your vacation home and rent it out for more than 14 days. Remember, rental income is tax-free only if you rent for 14 days or fewer.

The key to maximizing deductions is keeping annual personal use of your vacation home to fewer than 15 days or 10% of the total rental days, whichever is greater. In that case the vacation home can be treated as a rental, meaning you get the same generous deductions. To avoid going over the 10% limit, essentially you shouldn’t use your vacation home more than one day for every 10 days you rent it.

Make personal use of your vacation home for more than 14 days (or more than 10% of the total rental days), however, and your deductions may be limited. If your rental income is less than your rental expenses, for example, you can’t use the loss to offset other sources of income. There’s a worksheet that determines which expenses you can carry over to the following year.

 The IRS requires you to divide expenses between personal use and rental use. Let’s say you have a vacation home you personally use for 25 days and rent for 75 days. That’s 100 total days of use. You can only write off 75% of the expenses as rental expenses—75 rental days divided by 100 total days of use works out to 75%. Some of the personal expenses, such as mortgage interest and real estate taxes, may be deductible.

IRS closes tax loophole
A popular strategy used by owners of vacation homes to avoid paying capital gains on a sale was to convert a vacation home into a primary residence. This was accomplished by living in the home for two years out of the previous five before selling. By doing so a gain on the sale of up to $250,000 for single filers ($500,000 for married filing jointly) was tax-free.

The IRS hasn’t done away with the cap-gains exclusion, but it is closing the loophole for vacation homes. Starting in 2009, you have to pay regular cap-gains taxes on the portion of the gain that’s equivalent to the time you used the home as a vacation home after 2008.

Let’s say on Jan. 1, 2010, you move into a vacation home you bought on Jan. 1, 2002. Two years later you qualify for the cap-gains exclusion and decide to sell. You’d pay regular capital gains on 10% of the gain because in 2009 the home was a vacation home subject to the new IRS rules. The other nine years—2002 to 2008, when the old rules applied, and 2010 to Jan. 1, 2012, when the home was used as a primary residence—qualify for the exclusion.

This article provides general information about tax laws and consequences, but is not intended to be relied upon by readers as tax or legal advice applicable to particular transactions or circumstances. Readers should consult a tax professional for such advice, and are reminded that tax laws may vary from year to year.

Located on the edge of the Village of Roscommon this is a business opportunity for a great price. The facility is in good condition with the lot of 1.3 acres being fenced. There may be room for expansion of the business with all the property included.

The kennel has 16 runs with indoor and outdoor access for each of the 16 runs. There is a large wash room and generous common areas in the  building for staging of animals before housing them in the kennels. At the main entry is an office area for desks and receiving the public.  The outdoor kennel runs are rigged for easy hosing of animal waste into septic tanks.

At the back of the lot are 3 large fenced runs for large animals to exercise away from the main building.

685 S Main St Roscommon