Here in Minnesota, we love our cabins and time spent by the lake. It’s a time to fish, boat, swim, relax and spend time together as a family far away from the distractions of our lives during the week. According to the Minnesota Department of Revenue, about 122,000 properties have ID numbers assigned to “seasonal/recreational properties.” Add in relatives and friends and more than a million people may be connected to cabins in Minnesota!
Perhaps you’ve been renting one of those vacation home for years and would really like to finally own your own little piece of paradise on your favorite lake. Or – you’ve been lucky enough to have friends or extended family who will share their cabin with you but you want your own. But before you look at buying a cabin in Minnesota – we have some things to consider and ask yourself and your REALTOR.
Finding the Right Lake Property
Owning a cabin in Minnesota means having a built-in vacation spot so you can avoid those lines at security at the airport and have your own little piece of paradise. But, look at how much time you’ll have to spend at your cabin and what do you want to do when you’re there. Asking questions are a great starting point when working with your Minnesota REALTOR.
How much time you have can determine how far away you want your cabin to be from your home. Do you want to hike and garden? Simply relax? Or is it important to be on the water with lake rights? Do you have a boat and want to be able to waterski and swim? What you’ll be using your cabin for can make a big difference in how much buying a lake property will cost and how far you’ll need to travel to get to your own piece of paradise.
Going through these questions with your REALTOR can help you find the summer cabin you’re dreaming of.
Fixer Upper or Maintenance Free?
How much work do you want to do on your cabin? If you love fixing things and remodeling you may be able to find a fixer-upper cabin at a great deal. Or – maybe you’d rather have a cabin that someone else maintains and takes care of for you – especially in the off-season. Your REALTOR can also help you find great contractors to have ready if there is an emergency – like a leaky roof or a problem with a water heater.
Tax Benefits of Owning a Cabin
Owning a second piece of property can mean more tax benefits for you. The tax benefits of homeownership are fantastic. In general, your mortgage interest is deductible, most expenses with the purchase of your home are deductible and property taxes are often deductible from your income. Adding a second home or cabin can net you even more deductions come tax time.
The Minnesota Association of REALTORS® is the largest professional trade association in the state with more than 19,000 members who are active in all aspects of the real estate industry. REALTORS® are dedicated to home ownership and helping people looking to buy and sell homes in Minnesota.