Tag: investment property

[AL.com] See inside this stunning $2.5 million Alabama lake home with a glass bridge

Posted on Linda Thach

Maison Roc, a stunning modern estate located on Smith Lake in Alabama, is currently listed for sale at $2.495 million. According to real estate agent Justin Dyar, this custom home designed by Shepard and Davis Architecture has been showcased in Veranda magazine and various other publications.

The home’s design of reclaimed limestone, steel, and concrete was built to stand the test of time. However, the home’s main attraction is its glass bridge connecting the home’s two living areas.

“Enjoy sunsets or vistas of the main channel while being tucked away in a private cove,” [Justin] Dyar said. “Maison Roc is a true destination home on Smith Lake.” – AL.com

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[Home Stratosphere] 5 of the Most Expensive Houses Currently on the Market in Alabama (April 2025)

Posted on Linda Thach

Alabama’s real estate scene is a delightful fusion of Southern appeal and refined lakeside lifestyles. With a variety ranging from lavish plantations and oak-lined properties to contemporary residences with stunning views of Lake Martin and the Gulf Coast, the Heart of Dixie showcases a remarkable selection of high-end real estate. Rich with history, cities such as Birmingham and Montgomery offer charming neighborhoods while waterfront residences provide luxury living akin to resorts.

For those seeking opulence in unexpected places, Alabama doesn’t disappoint. Here are five of the most expensive houses that epitomize luxury living in Alabama at its finest.

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[Realtor.com] Lake Property for Sale: How To Buy a Waterfront Home

Posted on Linda Thach

Picture starting each day with the serenity of the water—owning a waterfront home can make that dream come true.

From retirees seeking a peaceful retreat to those chasing a personal paradise, lake homes offer a unique appeal. Even investors looking to expand their portfolio may find these properties a smart choice.

Learn what’s involved in buying a waterfront home and decide if it’s the right step for you.

“Spend time in the markets that interest you first. Visit several times and explore,” suggests Glenn Phillips, CEO at Lake Homes Realty & Beach Homes Realty. “Get a feel for the area, and a feel for the differences in these markets with the seasons.” – Realtor.com

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[Yahoo Lifestyle] Lake Property for Sale: How To Buy a Waterfront Home

Posted on Linda Thach

Imagine waking up to vacation vibes every single day—owning a waterfront property can turn that dream into reality.

Whether you’re a retiree seeking tranquility or simply craving your own piece of paradise, lake homes are worth considering. Investors looking to diversify their portfolio may also find these properties appealing.

Discover the process of buying a waterfront home to help you determine if it’s the right move for you.

“Spend time in the markets that interest you first. Visit several times and explore,” suggests Glenn Phillips, CEO at Lake Homes Realty & Beach Homes Realty. “Get a feel for the area, and a feel for the differences in these markets with the seasons.” – Realtor.com

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What Are Closing Costs?

Posted on Glenn S. Phillips

There are lots of things that need to be taken into account when you are planning to buy or sell a property. One of those things is known as closing costs. It’s something that first-time buyers may not be aware is required. And seasoned buyers and sellers may not realize can vary greatly from state to state.

Closing costs come from a variety of fees and often overlooked expenses. So what are these closing costs?

There are lots of factors that need to be taken into account when it comes to closing costs. These can include inspections, loan fees, government recording charges, and title charges. These costs are generally covered by the buyer, although there are also instances in which the buyer can ask the seller to cover some part of the closing cost fees.

To help provide you with a clearer picture of closing costs, we will go into more detail.

Real Estate Closing Costs
pen and glasses on closing cost documents

Closing costs can change according to the area and the type of transaction performed. However, in general, the things that comprise closing costs are:

• The cost of conducting surveys
• Inspection services fee
• Appraisal services fee
• Title search fees
• Title insurance
• Closing service (including notary closing services)
• Courier and Funds transfer/wire fees
• Loan origination fees
• Assessments
• Payoffs of unresolved liens and taxes
• Mortgage and deed preparation costs
• Document Recording Fee (including electronic recordings, or “eRecordings”)
• Other

Buyer’s Fees

In general, the majority of the fees included in closing costs are part of the buyer’s deal. This is why buyers generally have to take responsibility for the payment of closing costs.

Closing costs vary according to the state, type of agency, and transaction. All buyers should acquire an estimate of the closing cost fees they are liable to pay to avoid surprises at the end of the deal. Lenders are required by law to give you this, also known as a GFE (good faith estimate).

Seller’s Fees

When it comes to sellers fees, they don’t have to worry about closing costs as much as the buyer. The only thing they will be required to do is take care of the loan payoff costs, agent’s commission, associated penalties, notary fees, homeowner association fees, and transfer taxes.

Payment Options

When it comes to closing costs, the majority of the fees fall upon the buyer. These are the ones who usually have to decide how to pay it. They can choose to pay it outright through wire transfer or with a cashier’s check. They can also choose to negotiate with the seller to cover some part of the costs in a sale. Also, some lenders offer loans with the closing costs rolled into the mortgage. This option will almost always cost the buyer more in the long run, as they will end up paying interest on these items.

Many buyers and sellers are confused about the closing costs and the types of fees included in them. If you face any confusion, you should never hesitate to ask your mortgage broker or your real estate agent to explain any fees to you.

Why Buyers are Investing in Lake Houses During the Pandemic

Posted on Camille Smith
Photo courtesy of OneKindesign.com.

There’s no question that the pandemic has rendered city life stifling. With no bars, movie theaters, or indoor dining, the draw of big cities has dissolved. As a result, more people are investing in lake houses for the freedom the city doesn’t provide anymore. Real estate appraiser and consultant Jonathan Miller told CNN that he calls these “co-primary” homes. 

Instead of spending more time in one home and occasionally vacationing, those with co-primary residences spend equal time at both. According to Forbes, people are especially seeking markets where you can live comfortably “off the grid.” As the pandemic continues, this trend isn’t slowing down. If you’re looking to make a lake house your co-primary home, check out the key reasons driving this trend. 

A City Home Isn’t Necessary Since…

Photo courtesy of CNBC.com – Getty Images.

A simple rationale for this trend is that due to the pandemic, a city home isn’t necessary anymore. Many people stayed in cities for their in-person obligations. However, more shutdowns of offices and social life defeat the purpose of owning a city home. According to brokerage firm Miller Samuel Inc., Manhattan Sales have fallen 54% from last year. Instead, New York dwellers are investing in lake houses and other vacation homes in places like Connecticut and the Hudson Valley. This way, they can go back and forth between their co-primary homes whenever they need.

Priorities Have Shifted

Photo courtesy of airbnb.

Before COVID-19, a thriving social scene, and employment opportunities were a huge draw for urban environments. Living in a small apartment didn’t matter because many people practically lived at the office. However, as non-essential workers continue to work remotely, spacious homes are a bigger priority. With more people choosing open spaces over proximity to a now fading city life, investing in lake houses has become popular.  According to a Zillow survey, among Americans working at home currently, 66% would consider moving homes if their job continued remotely. This majority position marks a clear priority shift from access to work to access to space.

It’s Less Expensive

Photo courtesy of msn.com.

Many buyers cannot afford a lake house as a co-primary residence. These individuals may move to the lake full-time, in part, because it’s less expensive. This trend is especially true for buyers who have lost their jobs due to the pandemic. The country’s unemployment rate rose from 3.8% in February to 13.0% in May. According to the Pew Research Center, even these numbers might be underreported. When money is scarce, why stay in a pricey urban apartment when you can retreat to a less expensive lake house? Saving on expenses is just one reason why city renters are buying lake houses as a first home.

Immediacy Over Investment

Photo courtesy of QuickenLoans.com.

Typically, buyers see lake houses as an investment—something to put stock in and reap the benefits later. However, now that things are more distressing and uncertain, buyers want something they can enjoy immediately. For similar reasons, rentals have been harder to come by. Robert Nelson, sales managing director for Brown Harris Stevens, told CNN that those who may typically rent their lake house to guests are opting to spend more time at their vacation residence. When everything else is up in the air, being at a lake house offers a sense of immediate security.

This Pandemic Was the Last Straw

For many buyers, investing in lake houses during the pandemic was not a split-second decision. They had been mulling over it for a while, and COVID-19 was the final straw that prompted the purchase. In New York specifically, an influx of people have left the city in favor of more remote locations. According to CNBC, there are not enough homes on the market in nearby vacation areas to meet the current demand. Many of those who said “maybe one day” to their dream of a lake house are deciding that day is today. 

With so much uncertainty ahead, owning a lake house provides a much-needed sense of warmth and comfort. Are you interested in hopping on the bandwagon? Check out our listings in multiple states at Lakehomes.com! 

Lake Homes: More Than Just Waterfront

Posted on Staff

When you hear “lake home,” those words can conjure various images. Contrary to popular belief, not all lake homes are waterfront homes.

As a matter of fact, many people who own lake houses aren’t even close to the waterfront! Because of this, many lake homes are more affordable than you might think.

There are three major types of lake property: lakefront, lake access, and lake community. Each has its pros and cons, both functionally and financially.

looking out at the lake through window

Waterfront Property

Lakefront, also known as “waterfront,” property extends to the shore of the lake itself.

It offers the most prestige, the most access, and a direct line to the lake right out your door.

Lakefront property can be incredibly beautiful, and there’s nothing like looking out your back patio directly onto the calm waters of the lake in the evening.

Naturally, such prestige comes with a high price tag. Waterfront property is significantly more expensive than similar property, even a block away from the water.

It also brings with it many more responsibilities.

Waterfront property is the most vulnerable to flooding, erosion, and inclement weather. There are often special insurance requirements, and upkeep can be a significant commitment of time and money.

If you plan to build or improve on waterfront property, make sure your plans fit with the local regulations. Many lakes have restrictions on docks, signage, and landscaping.

Since there is a limited amount of shoreline on each lake, property on the water’s edge often appreciates the fastest.

Waterfront is also very attractive to vacationers. This can pay dividends if you intend to rent it out.

Waterfront property is perfect for those who have their heart set on the water’s edge and have the time and money to maintain it.

Lake View Property

“Lake view” property, also known as “lake access,” is near the water but does not extend to the lake itself.

This property can be a literal stone’s throw away from the water and is often just as picturesque as the lakefront.

Prices vary from lake to lake, but lake view property is typically much less expensive than lakefront.

Lake view property isn’t as scarce, doesn’t have the same water access, and doesn’t have the convenience or prestige of being directly on the waterfront.

At the same time, a lake view can give many of the benefits of a waterfront at a fraction of the cost or the headaches.

Owners still typically have easy access to the lake without needing to maintain their own stretch of shoreline. Weatherproofing and maintenance costs aren’t as significant, either.

Most lake communities have options for those who live on the lake to enjoy its benefits. Marinas can store boats until you need it, and there are usually access points for swimming, fishing and water sports.

If you want a property close to the water’s edge but have a limited budget, a lake view property may be for you.

Lake Community

Most lakes have neighborhoods arrayed about them. Many of these homes aren’t within clear view of the water’s edge but are still very much part of the lake community.

Homes situated in a lake community a short distance from the water can cost a fraction of waterfront property.

Nicole Anderson Walters, a Lake Homes Realty agent specializing in real estate on Logan Martin Lake, Alabama, offered, “you can save money by being in a lake view or lake access neighborhood. Many have water views and community areas with boat launch.”

“Where a home may cost you $89 per square foot off the water, the same home could cost upwards of $168-$200+ per square foot directly on the water,” she added. “You can often find a much nicer home off the water with amenities in the neighborhood.”

Depending on the size of the lake, these neighborhoods can range from high-end gated communities to condos and cabins to retirement communities and everyday suburbs.

These lake communities are often a short drive to a short walk or drive to the lake itself but still have easy access to fishing, swimming, boating, and other lake activities.

As an added benefit, most avoid many of the upkeep costs and restrictions associated with lakefront property.

Many communities are also situated near state parks, landmarks, shopping centers, and other attractions. If these appeal to you more than living near the water, look for lake communities within a short distance of the lake.

Find what works for you!

Every lake is different.

In addition to those listed here, market prices can vary greatly between lakes. If you can’t find the kind of property you are looking for at one lake, look for others nearby.

You may find a hidden gem right under your nose!

Renting Your Lake Home on Airbnb

Posted on Staff

Airbnb is an online network where people can lease or rent short-term lodging in private homes.

The company was started in San Francisco by two roommates who wanted to “just make a few bucks” by renting out their apartment like a bed and breakfast, hence, the “bnb” part of Airbnb.

Today, it is the most popular and fastest growing individual vacation rental website in the world!

cell phone featuring Airbnb logo being held over bed

Almost anyone can be a host on Airbnb, which allows people to utilize their spare homes or rooms to earn extra income.

The host sets the price for the space, and renters pay for their visit in advance online. Both hosts and renters maintain profiles with ratings, feedback and general information.

This is perfect for those who own a lake home!

Lake homes are a great draw in vacation season, and you can earn hundreds of dollars in extra cash by listing your home.

Below are some helpful tips for listing your lake home on Airbnb.

Follow all local regulations

Find out what local regulations, taxes, licenses, permits and registrations apply where your lake house is located.

The governing authorities who control the use and development of property in your area usually have useful information on any such regulations.

If your lake home is in a rent-controlled area, there may be stricter rules that apply.

Call and ask questions if you aren’t sure – it’s extremely likely you’re not the first person in your area to inquire about renting your home.

HOA or Co-Op Permissions

Some cities and neighborhoods have bans or restrictions on Airbnb, so it is critical you check with your homeowner’s association or Co-Op Board regulations prior to listing your lake house.

If your lake home is a unit in a condominium community, check your contract to see if there are any short-term lease stipulations.

Remember your neighbors

Consider your neighbors when you plan to host your lake home on Airbnb.

When you have guests coming, let your neighbors know so they won’t be alarmed by strange cars showing up in the driveway.

This can save you a concerned phone call from your neighbor when they show up, or worse!

If your community has a security service, you should also notify them, as well, and make sure your guests have any entry or alarm codes before their stay begins.

Take photos to post online

At least some photos of your property are mandatory on Airbnb. Just some quick shots with your phone will suffice, but make them attractive!

You want to not only give prospective renters an idea of what to expect, you also want your home to be desirable.

Make sure any messes are cleaned up – and be sure to include some shots of the lake from your property!

Make your lake home safe for your guests

Leaving a reference sheet for your guests can be very helpful.

They should already have your contact number through Airbnb, but leaving it there can make it easier. Local emergency numbers, a backup contact, and other services are a good idea, too.

Make a basic first aid kit to keep fully stocked on the premises. The kit should be checked and restocked each time a guests checks out.

Make sure there is a fully functional fire extinguisher in the home and that the guests know where it and the first aid kit are kept!

Confirm that your smoke alarms and carbon monoxide detectors are fully functioning, and that your lake home meets government safety guidelines for your area.

Ensure that you have a clearly accessible fire escape route, too.

Make sure your lake home is spotless for guests

One of Airbnb’s hosting ideals is cleanliness.

Providing a clean and tidy lake home will make your guests feel comfortable from the moment they arrive so they can focus on enjoying their stay and the scenery surrounding them.

This also demonstrates you dedication to making your guests feel welcome.

Most guests travel light and assume their host will have the basic amenities that a hotel would.

Make sure you are fully stocked up on paper goods like toilet paper, napkins, paper towels, etc., and have plenty of clean towels and washcloths. Three to four sets is a suggested minimum to provide for your guests.

Also provide basic shampoo, conditioner and soap for your renters.

Little things tend to make a big difference with guests’ satisfaction as well.

Providing a map of the local area, suggestions for local places to eat and drink and local events and happenings go a long way with Airbnb renters.

There are many other ways to maximize your income through Airbnb, while minimizing the impact of guests on your home.

With these tips, you have an excellent head start!

Deductions Aren’t the Only Way to Save on Real Estate Taxes

Posted on Nerdwallet (LHR Content Provider)

man in suit holding up white house outline

By Bill Brown, 2017 President of the NATIONAL ASSOCIATION OF REALTORS®.

Learn more about Bill on NerdWallet’s Ask an Advisor

The mortgage interest deduction and the state and local property tax deduction are probably the best-known tax incentives for homeownership and real estate investment.

That’s no surprise. Roughly nine out of 10 home buyers borrow money to buy a home, meaning they likely pay some form of mortgage interest. And property taxes are a near-universal expense for homeowners.

Both deductions are crucial to making homeownership possible for the average buyer.

But there are other real estate-related tax incentives that might not be as familiar.

Capital gains exclusion

All homeowners hope their property will appreciate.

The flip side is that anyone selling an asset that has gone up in value may get hit with a tax bill for the profit, also known as the capital gain. Thankfully, homeowners have some help in their corner.

An individual selling his or her principal home can qualify for an exclusion of up to $250,000 in capital gains, and married people who file jointly may qualify for an exclusion of up to $500,000.

There’s no need to report gains up to these limits on a tax return.

To take the exclusion, sellers must pass the IRS’ ownership and use test, but it’s fairly straightforward.

Essentially, they must own the property and have used it as a primary residence for a total of two out of the five years preceding the sale. Even if owners currently rent the property and depreciate it — as we’ll discuss shortly — they might still meet the use and ownership test and qualify for the exclusion. And even if sellers haven’t lived in the home during the past five years, they might qualify for a partial exclusion.

That’s a big help, as well as a recognition of the fact that millions of Americans depend on their home to build wealth throughout their lives.

1031 like-kind exchanges

The “1031 like-kind exchange” sounds like it’s ripped right from an accountancy textbook, but it’s actually fairly easy to understand.

Let’s say a person owns a single-family, detached rental home as part of an investment portfolio. If the home appreciates, the owner will likely owe capital gains taxes in the event of a sale — unless he or she uses the proceeds to buy a condominium in a market with higher rents.

Because the single-family home and the condo are both investment properties, tax law treats them as “like kind.” And because this transaction is a “like-kind exchange,” the owner won’t pay capital gains tax until he or she sells the new property.

This gives investors an incentive to put any realized gains back into the economy rather than pocketing them. And it’s a big deal: Major real estate investors and mom-and-pop investors alike can benefit.

Depreciation on rental property

Homeowners who rent a portion or all of their property might be able to “depreciate” that asset, which means deducting some of the cost of the property each year on their tax return.

That could result in a significant income tax deduction.

If you do earn money on the sale of your home after depreciation is taken into account, you’ll generally owe tax on the depreciated portion at the 25 percent “depreciation recapture” rate.

Any other gains will be taxed as capital gains.

Changes may be coming

For more than a century, the United States has recognized the benefits of homeownership and real estate investment.

It strengthens communities and helps individuals grow nest eggs for themselves. However, Congress is considering tax reform proposals that could have sweeping implications for real estate incentives.

That’s something to keep an eye on.

Everyone’s tax situation is unique. Before you count on any of these incentives, you may want to talk with a tax professional. But if you’re ready to take the plunge into homeownership or real estate investment, tax benefits — some obvious and others perhaps less so — are out there.

Bill Brown is the incoming president of the National Association of Realtors.

The article Deductions Aren’t the Only Way to Save on Real Estate Taxes originally appeared on NerdWallet.

NerdWallet is a Lake Homes Realty / LakeHomes.com content partner providing real estate news and commentary. Its content is produced independently of Lake Homes Realty and LakeHomes.com.