INVESTING IN VAIL: VACATION HOMES

Barron’s ranked Vail Resorts’ Colorado ski areas fifth in the “20 best places for second homes,” succinctly stating why we are well positioned for continuing success in the years ahead.

If you value lifestyle in combination with an appreciation profile, there just might be a place in your portfolio for a Vail vacation home that makes financial sense.

Vacation homes prices typically lag major market residential rates by 12-36 months.  But with asking prices for Vail and Breckenridge ski-proximate real estate up 10 percent to 20 percent this year (based on 24 month sold price per sq ft averages), discounting has not hit our market.

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July is typically the height of our inventory accumulation cycle, with most if not all of the well-priced properties selling to a more confident buyer base. This was evident in 2018. With stock market indices setting all-time record highs, investors who were previously reluctant to redeploy capital may rethink their strategy as returns slow and profit-taking occurs with trading range consolidation. Momentum-driven exuberance is bound to fade quickly in the winter season of 2018/2019. If top-line performance continues to stagnate, it will pave the way for alternative asset-class investments — such as real estate.

In combination with baby boomer demographics, a highly affluent customer base, an expanding international clientele, and the expenditure of more than four billion dollars in ski villages the size of postage stamps, the stage is set for continued long-term 5% rate of appreciation, supporting the premise that you can have fun and make money if you know how to go about it.

 

Barron’s ranked Vail Resorts’ Colorado ski areas fifth in the “20 best places for second homes,” succinctly stating why we are well positioned for continuing success in the years ahead. From an investment/portfolio diversification perspective, real estate’s “out-of-favor asset class” stigma has turned around, with national prices up 11.8 percent as reported by the Case-Shiller Index.

While the obligations and negative cash flow aspects of ownership can sometimes be burdensome, the numbers still work as illustrated in the Investment Performance tab on our web site with. Now is the time to explore the pluses and minuses of buying a Vail vacation home property as it fits your particular situation.

 

 

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