If you haven’t been paying attention to ski resort real estate in recent years, you could be missing a exceptional and unique investment opportunity. While no solid statistics are available from any government entity, the second home market is booming all across the United States and especially in Colorado. Particularly in Keystone.
Brief Real Estate History of Keystone
Just prior to September 11th, 2001, the real estate appreciation in Keystone and Summit County Colorado was clipping along at a 17% per year rate for condominiums…both slope side and further away near golf courses. The market sustained that growth for 7 years prior to 9/11. A few months after 9/11, things started slowing down, but it never went South. Appreciation rates slowed to ~4-6% for most properties in the condominium category. in 2008 the recession hit and values sank as owners tried selling their 2nd homes and were forced to drop prices. Price dropped about 30% in Keystone, which is far less than other resort areas of Colorado. 2014 brought steadiness to the market and since then we have seen real estate prices rise above th 2007 peak.
Why Keystone Colorado?
Why is Keystone Colorado such a great place to buy real estate? In recent years, the big ski resort companies have been putting millions upon millions of dollars into upgrading ski resorts to be first class due to customer demand. Copper Mountain for example just went through a huge expansion since Intrawest bought the resort. Along with it came massive real estate development along with development of an entire base area and alpine village. Today, the construction is done and prices have recovered after the Great Recession. If you bought in early, you made a killing on your investment. The same holds true again for Vail Colorado. Sure…Vail is expensive, but Vail Resorts completed the latest expansion of Vail’s village that costs right around 1 Billion dollars. Breckenridge, under the control of Vail Resorts also just added the highest ski lift in the world to attract more visitors and added a ski lift right from the main parking lot in town. The answer to investing in Keystone Colorado is easy. While many parts of Keystone are newer from the latest expansion in the late 1990’s in Keystone’s river run village, there are many vacant lots owned by Vail Resorts still in the area and you can bet that those lots will not go for parks or trails. The time has come for Keystone to blossom into the resort to rival the biggest and best in the USA.
The great thing about investing in ski resort real estate especially in Keystone is that it is an investment that isn’t like a boring stock or bond. It’s a fun investment that you can use with your family. Take a week and go skiing, or come in the summertime to go hiking or sailing in Lake Dillon. Best of all, you can have peace of mind knowing that it is growing at a rate that is far better than any standard stock or bond, and if the growth rate isn’t enough for you, you can rent your property to vacationers and bring in some extra income to offset any homeowners association dues or mortgages you may have with your property. This is NOT a “Own your vacation” timeshare. This is a true Real Estate investment to make some serious money for yourself, while the secondary benefit is your personal use. Other great benefits are tax savings, rental income, and family time to connect with your loved ones. Not exactly boring, now is it?
Is it too late to invest?
No. Keystone has been a stable market for a very long time. Bigger retailers and exceptional healthcare services are located in Summit County, making Keystone attractive to retiring baby boomers and families. Keystone has a long track record of great skiing and outdoor activities and we believe that Keystone is a great investment.
How does renting my property help?
Probably the most convincing evidence of a great investment opportunity is not in the actual appreciation of the property, but in the rental income potential and the demand for rental properties. Go take a look on Travelocity, Orbitz, or any other high-traffic travel website. Which destination in Colorado do you see lined up right along with the Caribbean, Hawaii, and any other destination? Breckenridge Colorado. Vail Resorts spends the majority of it’s advertising dollars on Breckenridge. As a result, they pull in over 1.4 million skier visits per year to Breckenridge. Breckenridge is a huge place and at any given time can sleep approximately 30,000 people in its own rooms. Now consider this: Keystone is only 13 miles away from Breckenridge. People know that Breckenridge is crowded during the prime ski season and they want a little less of the hustle and bustle, so they choose to stay and ski at Keystone. With little advertising, Keystone reaps in just under 1 million skier visits per year. Not a whole lot less than Breckenridge. While, at the same time, Keystone only has the capacity to lodge and sleep about 15,000 people on any given night. Keystone offers a far better investment opportunity and a much better chance of bringing in enough rental income to significantly lower your cost. Depending on your financial situation, and how much money you put down on your real estate investment in Keystone, it is not too uncommon to have your property pay for itself with rental income.
If none of this is convincing to you, we’ll be happy to show you our rental income numbers for our current property owners to prove to you what the investment opportunity is in Keystone Colorado. Think again if you are looking at places like Dillon, Frisco, Silverthorne, Breckenridge or Copper Mountain. We are truly convinced that the best investment in ski resort real estate right now is in Keystone.