Idyllic Abodes

A private villa at the Four Seasons Resort in Punta Mita.

Three second home destinations offer a great escape and may also be good investments. BY ANN WYCOFF

DAYDREAMING OF THAT ski-in/ski-out mountain chalet amid snow-laced pine trees? Or floating in an infinity pool above a turquoise bay? Or how about sipping a mai tai while lounging on your lanai? Those scenarios all sound nice, but the real question is, are they money-burners, fantasies, or potentially smart investments for your portfolio and well-being? Tycoon Andrew Carnegie once said 90 percent of all millionaires got that way by owning real estate. With interest rates remaining low and the remote workplace on the rise, not to mention the popularity of vacation rental sites like Airbnb and VRBO, maybe this is the right time to think about a second home. In the following pages we feature three popular second home locations: Tahoe, Mexico and Hawaii. For each destination we share an opportunity to purchase in a new planned development and learn about the business of owning a vacation rental in one of these spectacular locations.

Mexico

MEXICO MAGIC

Punta Mita, Mexico

PLANNED DEVELOPMENT

Images from the luxury properties on the exclusive 1,500-acre Punta Mita peninsula.

THE DETAILS Set on a 1,500-acre private peninsula on the southwest point of Mexico’s Riviera Nayarit region, Punta Mita is a luxury gated enclave with 14 residential communities, surrounded by lush landscaping and pristine white sand beaches. It offers everything from luxury townhomes and villas to home sites and sprawling $20 million custom estates. AMENITIES The location includes three beach clubs with spa services and casual dining, a 10-court tennis center, and two Jack Nicklaus signature golf courses (Punta Mita Pacifico has the world’s only natural island green), plus the Punta Mita Ocean Sports Program for stand-up paddleboarding, surfing, kitesurfing, windsurfing and other fun. Owners also enjoy the offerings of Four Seasons Resort Punta Mita and the St. Regis Resort Punta Mita within the gated peninsula. PRICE TAG Whole ownership real estate ranging from $500,000 to more than $20 million. WHY IT’S A GOOD INVESTMENT There’s been a controlled gradual uptick in pricing and sales with an average annual price increase of more than 5 percent per year since 2013; steady rental occupancy and increased rates; and an increase in resort occupancies inside the gates of Punta Mita and Riviera Nayarit. DEMOGRAPHICS Seventy percent U.S. owners, 15 percent Mexican, 14 percent Canadian, 1 percent other; 24 percent of the residents are from California, 10 percent are from Mexico City.

FINANCIALS

HOA Varies with each development, ranging from $750 to $3,000 per month Club Dues $8,000 for sport membership (no golf) or $13,600 for golf membership. Gives access to tennis courts, three beach clubs, private golf courses, fitness centers and much more. Housekeeping $250 to $1,000 per month depending on size of home and services Utilities $200 to $600 per month Travel Expenses Average airfare from SFO to PVR is $400 Renting Permitted; managed by individual homeowners through rental agencies like Mita Residential

OWNERSHIP PERSPECTIVE

Owner: Rick Addicks Punta de Mita, Mexico

VACATION RENTAL

THE DETAILS Rick Addicks’ one-bedroom top-floor condo at La Misíon de Mita sleeps four and wows with panoramic views of Banderas Bay and the surrounding mountains from its expansive balcony that stretches the entire length of the unit. The oceanfront property is set in an authentic fishing village in Riviera Nayarit, 45 minutes north of Puerto Vallarta. AMENITIES The seaside Mission-style complex has lush greenery, a large dark-bottomed pool, a spacious hot tub and hammocks for lazing under the coconut palms. There’s also a poolside gym, massage table and space for yoga. Golf and spas can be accessed at nearby Four Seasons Punta Mita or St. Regis. WHY OWNER LOVES IT “It’s an exceedingly beautiful Mexican village that’s safe and clean and not touristy. The tight-knit coastal community has friendly locals, affordable and fabulous restaurants, pristine beaches, great snorkeling, world-class surf spots, whale watching, an abundance of turtles and a nearby jungle for hiking and horseback riding.” PRICE TAG One-bedroom units with ocean views start at $250,000, with two- and three-bedrooms and penthouses ranging up to the $700,000s. WHY IT’S A GOOD INVESTMENT “It’s an unspoiled, authentic, charming town with an immense potential for growth. Its neighbor, Sayulita, blew up since we visited there 20 years ago. There’s a lot of development in the area and a new road was just built. Bill Gates just bought the Four Seasons and surrounding property and we are told the President of Mexico vacations here. We also want to retire here and might not be able to afford it 15 to 20 years from now.” DEMOGRAPHIC Surfers, celebrities, couples, families, Canadian snowbirds and many Marinites. In his condo complex, most of the owners are from Northern California (Hollister, Sonora, Napa and Marin).

FINANCIALS

HOA Approximately $170 per month for a one-bedroom; includes maintenance and 24/7 security Housekeeping 300 pesos (about $17) for cleaning and laundry Utilities Extremely low cost that varies with use of water and air-conditioning Travel Expenses $400 airfare from SFO in low season; $800 high season Rental VRBO number 828232. Approximately $1,000 per week. Average $155 per night Manager Fees None, Addicks handles management himself

TIP “It is no longer complicated to buy property in Mexico and there are still affordable places with ocean views. The California developer we bought from owned the entire complex outright, so no bank was involved.”

Final Word

“You just gotta visit the place to understand how awesome it is.”

Lake Tahoe

ALPINE ADVENTURE LIVING

North Lake Tahoe, California

PLANNED DEVELOPMENT

Images from residences at the ski-in/ski-out Mountainside at Northstar, featuring three ownership experiences including the gated M25 community.

THE DETAILS The Mountainside at Northstar includes ski-in/ski-out three-bedroom, modern, mountain-style townhomes; luxury four-bedroom residences; and a gated M25 community with custom legacy homes and lots, all set atop Northstar Ski Resort, one of the best in the U.S., just eight minutes to Truckee. AMENITIES High design, sweeping views and spareno-expense luxury define these slope-side residences. All owners have access to the Tree House, which has a fitness facility, outdoor pool, dining area, lounge and game room. The Tree House Outfitters adventure concierges provide insider guides to the trails and waters of North Lake Tahoe. Families can gather for fireside chats and overnight stays at the new Rendezvous Cabins, explore the 40-plus miles of biking and hiking trails, and lounge at the private owners’ retreat located in the heart of The Village at Northstar. Future amenities include a Mountainside Yoga Studio, nestled into a spectacular rock outcropping with stellar views, and a kid zone play acre and picnic area. The Ritz-Carlton, Lake Tahoe sits in Mountainside’s backyard, and homeowners get a comped two-year spa membership, regularly $3,500. WHY OWNERS LOVE IT It’s a pristine outdoor playground that keeps families connected to the mountain, all year long. PRICE TAG Home sites from under $1 million, residences from $4 million and townhomes from $2 million. WHY IT’S A GOOD INVESTMENT Ski-in/ski-out real estate can be a rare find these days. And no other significant communities are in the planning phase in the region. DEMOGRAPHIC Families and adventure seekers.

FINANCIALS

HOA Varies between the communities at Mountainside Master HOA and Northstar Association $5,683 per year (manages all mountainside amenities, outfitters and community common areas) Townhomes HOA $13,975 per year Stellar Residences HOA $20,027 per year M25 HOA $7,595 Tahoe Mountain Club $460 per month grants you access to Old Greenwood golf course, pavilion, swimming pools and tennis. In addition, it provides access to Schaffer’s Camp, private fine dining atop Northstar. Maintenance Included Housekeeping Local companies start at $40 per hour Renting Permitted, but not managed by Mountainside

FINAL WORD It’s an oasis in the forest with every luxury and service you can imagine.

TIP “Choose something that’s not too far away, as the closer something is the more likely that you’ll use it frequently.”

Final Word

“The house has really served as a family anchor for close to 50 years.”

OWNERSHIP PERSPECTIVE

Owners: the Sedin family Squaw Valley, California

VACATION RENTAL

THE DETAILS The Sedins’ unit at Squaw Valley North Condos is a four-level, four-bedroom-plus-loft condominium with fantastic mountain views that sleeps eight adults and four kids. It’s a 10-minute walk to the Squaw Valley village shops, restaurants and ski hill, a seven-minute car ride to Tahoe City, and a 15-minute ride to Truckee. WHY OWNERS LOVE IT The Sedin family convenes several times a year for multigenerational celebrations, holidays and vacations. “With four levels, there’s lots of room for kids and parents to hang out together or separately,” explains family member Stephanie Durran. The biggest asset: “It’s walking distance to the best ski mountain in Tahoe, so, no hassles with typical traffic and parking. There are some good restaurants and shopping in the village so if you don’t want to get in your car you don’t have to. It’s also really nice to be able to come and go at any time. We frequently head up late on Friday to miss traffic, then come home late on Sunday. You really feel like you get a full weekend. That’s not an option when you’re renting since checkout is typically so early.” PRICE TAG The Sedin family bought the unit in 1969 for $45,000 when they had five young children who were wreaking havoc in the local hotels. WHY IT’S A GOOD INVESTMENT It’s now worth $800,000 to $1 million, and they make $30,000 per year on rentals after expenses. DEMOGRAPHIC Generally second homeowners from California.

FINANCIALS

HOA $2,000 per year Maintenance $2,000 per year Housekeeping $135 per visit Utilities Inexpensive in the summer, $300 to 400 per month in the winter Travel Expenses Gas from the Bay Area plus a stop at Ikeda’s for burgers and shakes Rental VRBO number 765121; property manager charges 35 percent of fee; house rents for between $500 and $1,000 per night depending on the time of year

Hawaii

HAWAIIAN HEAVEN

Kailua-Kona, The Big Island

PLANNED DEVELOPMENT

Images above and far right from the Kohanaiki private community located on the west side of Hawaii. Opposite page, left: Napili Kai Resort.

THE DETAILS The Kohanaiki, a 450-acre private club residential community with estate home lots, custom single-family homes and paired townhome-style residences, sits along 1.5 miles of stunning coast on the west side of the island of Hawaii, just 10 minutes south of Kona International Airport and 10 minutes north of Kailua-Kona. AMENITIES Steeped in natural beauty with unforgettable surf breaks and sunsets, the coastal playground has a Rees Jones–designed golf course with six oceanfront holes, outrigger canoeing, stand-up paddleboarding, snorkeling, scuba diving, fishing for blue marlin trophy fish, beach boot camps, K-Fit cross-training programs, yoga, Pilates, spin and private trainers. There’s also a new 67,000-square-foot clubhouse, spa sanctuary, archaeological and cultural sites, green architecture, one-acre biodynamic organic community farm and world-class global cuisine. The club even has its own signature Kohanaiki craft beer brewed on site. PRICE TAG $3 million to $22-plus million. WHY IT’S A GOOD INVESTMENT Kohanaiki is as luxurious as it gets, and there’s only so much oceanfront property left on the Big Island. DEMOGRAPHIC Predominantly U.S. owners, some full-time, with others from Canada, Japan, China and Europe. Major sports personalities, celebrities and industry leaders.

FINANCIALS

HOA Approximately $15,000 per year Club Dues $100,000 initiation fee, annual club dues $25,000 per year Maintenance Mostly covered in the dues Travel Expenses Average airfare $750 Renting Not permitted, no VRBO

FINAL WORD A lucky 400 will get to call this place home.

OWNERSHIP PERSPECTIVE

Owner: Stephanie Witt Lahaina, Maui

VACATION RENTAL

THE DETAILS Stephanie Witt’s studio unit is in a twostory oceanfront complex at Napili Shores by Outrigger overlooking stunning Napili Bay, just 15 minutes from Lahaina and 32 miles to Kahului Airport. AMENITIES This unique “condotel” (condo hotel) has a 24-hour-staffed front desk, two restaurants (including the Gazebo Restaurant), a concierge desk, surf shop, two pools and a hot tub, all on six lush acres. The property edges a golden sand beach and a perfect half-moon bay for boogie-boarding, snorkeling and swimming with turtles. Great hikes, golf courses and high-end hotels with spas are nearby. Stellar surfing can be had in Honolua Bay 10 minutes north. WHY OWNER LOVES IT “Napili Bay is all low-rise condos with an intimate and very local Hawaiian feel. My second story is extremely private and sits oceanfront looking directly at Molokai. Despite being a studio, it feels bigger because of the lanai and expansive views. And the beach is only a few steps away.” PRICE TAG $310,000 in 2000; worth approximately $600,000 today. WHY IT’S A GOOD INVESTMENT “It’s a cash cow. I rent it out when I want and go there when I can, usually three times a year. Even when I am not making a lot of money from it, the condo pays for itself.” DEMOGRAPHIC Californians and Canadians who rent out their units.

FINANCIALS

HOA $843 a month (began at $345) Maintenance All included in HOA except electrical Housekeeping A local company charges $120 for check-in and out Utilities Only electrical, ranging from $20 to $50 per month Travel Expenses Average airfare $850 Rental VRBO Number 256796; average $245 per night Manager Fees None; a local island cleaning company handles any repairs Unexpected Cost Rise in HOA fees

TIP Witt advises asking an agent to keep an eye on inventory. “It turns out my unit is all about location, location, and everyone says it’s the best in the complex. Small, but so Hawaiian.”

Final Word

“Maui is truly the velvet glove. I fell in love and have never felt any other way. It is my saving grace [getaway] from Marin.”