Investing in Breckenridge Real Estate has become increasingly popular over the last decade, which isn’t surprising considering Breckenridge is one of the most desirable, and now affordable resort towns in the Rocky Mountains.
During the 2000′s Breckenridge real estate sales were on fire, but at the same time prices didn’t get crazy like they did in other mountain town markets like Vail and Beaver Creek, where you could pay as much as $3,000 per square foot for a prime location, newly constructed condo. Imagine paying three million dollars for a 1,000 square foot two bedroom condo!
Breckenridge real estate took a more consistent and steady increase in price during the last decade until peaking in 2007. And of course, plenty of people got a little “real estate drunk“, jumping on the bandwagon of owning a piece of this charming mountain town. But that doesn’t mean they made a bad choice, as most bought for the pure reason of enjoyment and having a place to retreat from the daily grind, relax and reconnect with family and friends. Isn’t that really what it’s all about…
But what about the events that have taken place in our country over the last few years? The “Great Recession” has taken it’s toll on many of us, and in many different ways depending on our individual circumstances. Circumstances have changed for many of the owners that purchased their Breckenridge vacation homes during the last decade and opportunities are showing up all over the place. And these opportunities create some great reasons to buy Breckenridge Real Estate.
The first is simply price. Prices have fallen to 2005 levels
But, when I say “opportunities”, I’m not implying that there is an abundance of foreclosed properties and desporate owners begging to get out from under their properties. However, there are some very good buys, that really make good financial sense, particularly
Investing in a Breckenridge Vacation Rental has become increasingly popular over the last decade, which isn’t surprising considering the potential benefits of owning a property located in one of the most desirable areas of the Rocky Mountains.
The obvious benefit is from the increasing value of properties in the Breckenridge, Colorado market, but vacation home owners can also benefit from rental income, which generates cash to offset the cost of owning the property as well as enhance the return on investment. Lastly, the sheer enjoyment of owners’ and their families using the property as a family retreat, a place to create lasting vacation memories might well rank as the best reason of all.
While the general sentiment in the United State is that property values have taken a nosedive these last few years, Breckenridge, Colorado has remained surprisingly stable showing a positive increase in property values. Most of the property owners have chosen to invest in Breckenridge because they’re passionate about the area and really feel connected, even though most only visit their homes a few weeks per year. Additionally, most property owners in Breckenridge really don’t need to sell their properties if it means taking a large discount. So they just continue to enjoy them and choose not to participate in the panic selling that’s going on in other areas of the country.
While overall sales volume may be down in Breckenridge, visitors are still coming in full force. Owners of Breckenridge vacation rental properties are enjoying the cash flow created by the continuous stream of guests vacationing throughout the entire year. Yes, there is more to Breckenridge than just skiing. The summer is packed with events that continue to lure visitors and they all need a place to stay.
On the other hand, being successful as a vacation property owner certainly requires more work than just collecting rent checks and letting the property appreciate over time. The real work comes in marketing and managing the property as a short-term rental.
To keep up with the competition in the highly competitive market, the property needs as much exposure to potential guests as possible. This is achieved by advertising on local, national and international levels. Today approximately 83% of travel research is done over the Internet. Thus having a powerful presence on the web is critical. This can take the form of a simple listing on a vacation rental website to “pay-per-click” advertising, daily blogging, social media networks, referral relationships with others in the industry, and the list goes on.
However, to compete successfully it’s nearly impossible for an individual who owns just one property to get the maximum performance out of the property because of the time and management commitment that goes into each home.
Working with a good vacation rental property manager is an absolute must, particularly one that has a strong Internet marketing and booking process. To find out more about the benefits of professionally managing your vacation rental home, please contact Mark Gossman at Ten Peaks Lodging. Maximizing your investment is the key to a successful return and certainly makes the whole property more enjoyable for your time as the owner.