Even in a plunging real estate market, you can profit from investing in real estate if you know where to invest your dollars.
So, do you know where you should be investing right now in this challenging real estate market?
The answer: Lake Tahoe real estate
Here’s why you should invest in Lake Tahoe real estate, especially in the South Lake Tahoe area.
Top 7 Reasons to Invest in Lake Tahoe Real Estate
#7: Ideal Weather Conditions & Year Round Recreation Attracts New Buyers
Summer tourists in nearby Sacramento and Reno experience temperatures in the 100’s. The Bay Area is socked with fog. Lake Tahoe generally enjoys highs in the low 80’s.
And, don’t let the fact that this is known as a world-class ski destination fool you into thinking that the winters are uncomfortable. An average January day ranges from 15 – 41 degrees with brilliant sunshine compared to Vail (0 – 31,) Jackson Hole (5 – 28,) and Stow (1 – 25.)
When a storm comes it drops the snow and leaves us basking in sunlight. In fact, the sun shines approximately 275 days a year.
This allows Lake Tahoe to offer the complete selection of recreational activities all year round
Unlike most ski or golf resorts, Lake Tahoe has something for everyone. The pristine blue waters and sandy beaches provide swimming, fishing and sun bathing. Boating opportunities range from kayaks to sailing to motors. The forest and mountain trails draw hikers, bikers, rock-climbers, snow mobiles, snow shoes, cross country skiers and campers. Golf resorts range from lakeside to high desert. Photographers, painters and artists of all mediums flock to the area.
#6: Real Estate’s Rolling Boom Effect
When an area is experiencing high real estate activity, investors should look to the surrounding areas for the next wave of activity.
The Lake Tahoe real estate market benefits from the surrounding Reno, Sacramento, and overall San Francisco Bay communities. We are receiving reports that increased real estate activity in the area and values are stabilizing.
With today’s’ inventory surplus, low interest rates and the news blasting daily “doom and gloom” reports, sellers are more willing to negotiate now.
#5: Baby Boomer Are Buying Lake Tahoe Real Estate Now
Baby Boomers are the driving force behind the resort market industry and they have only just begun to invest. Many baby boomers are now inheriting various levels of wealth from senior family members. At the same time, they are in their peak earning years and investing actively in second homes and retirement homes.
They are searching for second homes near beaches, lakes, ski resorts and golf courses. Lake Tahoe is one of the few second home destinations that can offer all three.
#4: It’s Affordable
Reasonable pricing is one of the key reasons to invest in Lake Tahoe real estate. According to the South Lake Tahoe Association the price for a single family home within its South Shore is less than half than homes in Vail, Aspen and Jackson Hole.
#3: Opportunities for Supplemental Income
Lake Tahoe is a world-class vacation destination. Vacation rentals bring in subsidized income which can help cover the costs of your real estate investment. When a home offers the “Tahoe Look,” dwells within a desirable location (near outdoor recreation) and includes amenities such as a hot tub or pool table, demand automatically increases.
For example one of our current listings, a 6 bedroom contemporary home has averaged an income of over $125,000 for five years now.
# 2: High Demand and Strictly Limited Supply
In a nutshell, there is no chance of real estate over-development having a negative impact on the value of Lake Tahoe homes. Generally, supply is low and demand is high.
During the 2004-2005 “boom,” investors and developers were throwing up houses at break-neck speed in hopes of huge profits. When this market came to a screeching halt, these areas were the first to see foreclosures. Supply will always be in the favor of the investor because Lake Tahoe real estate is an environmentally protected area. That means growth is strictly limited.
And, the # 1 Reason to Invest in Lake Tahoe Real Estate: Improve Your Quality of Life:
Would You Rather Watch Your Investments or Live Them?
Everyday, we hear those who have invested in Lake Tahoe real estate praise the benefits gained through living a less stressful and more joyful life. These benefits include better health, longer life, better relationships, and so forth.
How does this relate to investing?
Think about it.
Wouldn’t you rather watch it grow while relaxing on the beaches of Lake Tahoe rather than pulling your hair out in front of your computer?
You can watch arrows going up and down or you could ride the chair lift up and swish your way down. You can listen to computer chimes or you can listen to the wind in the pines.
What could be better than wrapping “quality of life” and long term investments into one “full benefits” package?
Robert Frost inspired us to unite vocation with avocation. Investing in Lake Tahoe real estate is just such a venture. The pay offs can be huge.
Theresa Souers, Partner in the Lake Tahoe real estate company, Pinnacle Real Estate Group – Lake Tahoe has helped hundreds of real estate investors just like you profit from investing in Lake Tahoe real estate. Go to homeintahoe.com to get FREE instant access to Theresa’s insights and the best listings in the Lake Tahoe real estate market. The Atelier