Tahoe Vacation Properties
There are very few opportunities today where you can
live a magical vacation on your own property and know
confidently and securely you have made a wise investment!
An investment that keeps on growing!
Vacation Properties in the right location
Tahoe vacation properties are nestled in a pristine and
dramatic outdoor environment located close to the cultural
mecca of San Francisco, California, and the frenetic energy of
Reno, Nevada. Spectacular, world-renowned Lake Tahoe provides
resort living at its very best!
Tranquil mountains, infused with 300 days of sunshine and
one of the largest fresh water lakes in North America offer
a gracious entrance to your own piece of paradise.
Lake Tahoe's second home and vacation home market is the
nation's fastest growing real estate market; and Lake Tahoe,
as an international recreation destination remains on top
of the recommended investment areas. The boomer generation
continues to want property that pays for the play.
There are lots of ways to say "the best" but the simple
fact is Lake Tahoe vacation properties are a wise "lifestyle"
choice as well as a wise real estate investment decision.
Throughout the decades, Lake Tahoe's real estate values have
consistently grown at a rate higher than the state and national
averages. The national median existing-home price for all housing
types is expected to rise another 6.1% in 2006. At this time,
South Lake Tahoe's median price is comparable to that of the
national median, which is pretty amazing when one considers its
status as an internationally known resort area.
Will this real estate value continue to grow?
Factors that have a direct affect on the real estate market
are the U.S. gross domestic product, unemployment, consumer
price indexes and interest rates. According to the National
Association of Realtors, the U.S. gross domestic product should
increase from 3.7% in 2005 to 4.1 % in 2006.
The Consumer Price Index is projected to rise 2.9% and
inflation-adjusted disposable personal income is forecast to
increase 4.5% in 2006. And finally, interest rates remain
at record lows. In other words, as far as we can see, the real
estate forecast for Lake Tahoe vacation properties remains healthy!
Ride the Rolling Boom
One of the strongest indicators of an area's investment potential
has to do with demographic shifts - called the rolling boom.
This is when an area grows due to its affordability compared to its
pricey neighbors. How does this rolling boom affect Lake Tahoe?
Lake Tahoe is sitting centered among predicted major hot spots.
Nevada is growing four times faster than the United States and is
predicted to double its total population by 2023. Reno, Nevada is currently
rated #6 in the Metro Growth list. Then, take a look at the
San Francisco Bay Area and its affordability issues. Or, consider
Sacramento, California which was recently named as being one of
the "soon to be" neighboring markets.
Vacation Property Income Opportunities
When purchasing Lake Tahoe vacation properties for income purposes,
an investor has two options
that can produce great results.
- Vacation Rental or
- Full Time Rental
The advantage of a full time rental lies in the consistent
income while the tenant pays most utility bills. There is a
shortage of full time rentals in the South Lake Tahoe area resulting
in almost a zero vacancy factor. The average rental will bring in
close to $400 - $500 per bedroom.
While the income from a vacation rental may not be as consistent,
its potential for income can be much greater AND allow for personal
use. For example:
If a $500,000 home were to increase only an average of 7% in
value annually (not the 20 - 30% seen in the past two years,)
an investor could still see the following:
- $35,000 in equity
- A potential of $25,000 in rental return
- Additional tax exemptions
- A whole lot of fun
How do you want to watch your investments grow? Sweating
it out in front of a computer looking at stock returns or
sweating it out on the slopes and beaches?
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