Are you beginning to think about buying a Condo or Townhome around Lake Chelan?
If so, you’re not alone.
When I’m first approached by someone who’s ready to take the next step toward investing in our rapidly growing real estate market, I have several questions for them. Some they’ve considered, while others may never have been considered.
So here’s a list of things to consider as you begin to process the possibility of ownership in a Lake Chelan condo:
Do You Plan on using the Condo as a Vacation Rental?
Not all complexes fall with in the Tourist Accommodation zoned location required by the City of Chelan. If not, then vacation rentals would be prohibited both as a zoning violation, and therefore likely a big “no-no” with the Home Owners Association. Check the City’s land use map to see if the complex you’re interested in is zoned for short-term vacation rentals here. You’ll want to find the Tourist Accommodation zoning. (TA).
Do You Want a Pet Friendly Complex?
If you plan on renting out your unit, there are very few HOAs which allow renters to bring pets. Many will allow owners using their condos to bring their personal pets, but this could be a factor in the desirability and frequency of booking for your unit. As an example, popular vacation rentable locations such as Grandview on the Lake does not allow pets at all, while Lake Chelan Shores will allow pets for owner’s only and Chelan Resort Suites is a pet friendly complex for both renters and owners.
How Do You Plan to Finance Your Investment?
Not all Chelan Condo Complexes will qualify for Conventional Financing. It’s easy to get excited about buying a condo with a low second home down-payment amount and a relatively affordable 30 year fixed rate mortgage, but these programs are not always an option. For complexes that have registration desks, or are in rental pools, there’s condo-tel financing available with several local banks. Because these loans are not conforming products; ie, able to be sold in the secondary market, they require larger down-payments (often 30%) and are usually structured as 3, 5 or 7 year adjustable rate mortgages. There are many mortgage calculators online and after plugging in pricing and 30 year amortization at today’s rate, the payments can seem to be a no-brainer. Especially when that payment is off-set by vacation rental income.
Have You Taken Into Consideration All the Costs Involved?
Mortgage interest, property taxes and homeowners insurance will be your main expense, but don’t forget to factor in HOA dues which vary wildly, by hundreds of dollars depending on complex and unit size. In addition, if you plan to Vacation Rent your property, you’ll most likely need Vacation Rental Property Management. These fees range based on company and length of commitment.
Have any other questions?
Need additional photos?
Let me know, I’m happy to help!