Investing in Telluride Real Estate

Wondering about the different opportunities for real estate investment in Telluride? We can help you sort out the advantages of the many different options. Here is a summary of some of the different ownership options available in Telluride. Feel free to call my cell phone at 970-708-0159; otherwise, email is a great way to reach me 7 days a week – henry@telluride.com.

FULL OWNERSHIP HOMES

Main advantage:

The ultimate in a mountain getaway. Telluride and Mountain Village have gorgeous mountain homes for you and your family to enjoy. A home provides you with privacy and availability any time you want it. Homes can be included in a short-term rental pool to significantly offset your carrying costs. Private homes have also enjoyed the very highest price growth of any real estate investment. In town, home prices have enjoyed a compound annual growth rate exceeding 25% over the past five years.

Main disadvantage:

You are responsible for all maintenance. Again, being part of a rental pool, such as Alpine Lodging & Real Estate allows you to outsource caretaking and maintenance as well as earn rental revenue.

There are also tax advantages on all of these. If you make a property available for rent, you can deduct interest and expenses in maintaining, including depreciation. If you choose to finance a second home, the interest on the property may be tax deductible, subject to certain limits, especially if you don’t make it available for rent.

FRACTIONAL OWNERSHIP

Main advantage:

The most affordable entry point into the Telluride real estate market. Fractional ownership is more affordable with respect to both the initial investment as well as on-going carrying costs. With fractional ownership there are no maintenance concerns as the HOA takes care of all maintenance.

Additionally, fractional ownership offers the benefit of being part of an exchange program to allow the flexibility of visiting other places. If you want more time in your unit in Telluride, fractional units allow you to come on a space available basis for additional weeks.

Description:

Fractional Ownership means that you buy a certain number of weeks (usually 2-5) in a complex. Complexes with fractional ownership have full condominiums with kitchens, but offer amenities like hotels. Fractional ownership is gaining popularity in Telluride as it has in other ski resorts. The River Club has a convenient in-town location for summer and winter with amenities such as a shuttle service, concierge, hot tub and fitness room. The River Club has some great deals on two and three bedroom units from $25,000.

In the Mountain Village core, the Franz Klammer offers all the amenities you could want in a luxury hotel, including airport shuttle, spa services, hot tub, pool and beautiful common areas. Franz Klammer has lovely two and three-bedroom units starting as low as $45,000.

Main disadvantage:

Fractional ownership doesn’t allow you to visit whenever you want – especially over busy holiday periods. Also, historically, fractional ownership has not offered the strong price growth that full ownership properties have enjoyed. There are homeowner association dues on all fractional ownership properties.

FULL OWNERSHIP CONDOMINIUMS

Main advantage:

Available whenever you want to be here! Also, condominiums have enjoyed great price growth in Telluride and the Mountain Village. Currently, there is a large selection of condominiums on the market starting as low as $500,000.

There are condominiums in all sizes and locations, and we can find the perfect condominium for your needs. Most condominiums make great rental units and we can provide you with an analysis of all your carrying costs including homeowner association dues and a pro-forma rental income on any unit.

Main disadvantage:

Although the homeowner association takes care of outside maintenance, you are responsible for all maintenance inside the unit. Being part of a rental pool, such as Alpine Lodging & Real Estate allows you to outsource caretaking as well as earn rental income.

CONDO-HOTELS

Main advantage:

A lower entry point than some other full-ownership condos. Also offers hotel amenities for you and your rental guests. You can enjoy your units as much as you like, and whenever you are not in your unit, it is in the rental pool. The management of the complex takes care of all maintenance and housekeeping.

There are only a few condo-hotels in Telluride right now, although more are in the works. The Hotel Telluride has studio units offered from $249,000, and in the Mountain Village, the Mountain Lodge has units on the market starting at $369,000.

This type of ownership has not been available long enough to show reliable data on price growth, but the product has been well-received and Hotel Columbia is planning a remodel to convert to condo-hotels this year.

Main disadvantage:

Since these properties offer full amenities, property management and rental services through their sales agents, the homeowner association dues tend to be higher than a regular condominium. However, rental revenue is usually high enough to more than offset the homeowner association dues.