Have a blast mixing pleasure and financial benefits

By Theresa Souers (president, South Tahoe Association of Realtors).

Lake Tahoe: A Unique Location

Lake Tahoe is located only a few hours from San Francisco, and just across the mountains to Reno, Nevada. Lake Tahoe is nestled between stunning mountains and crystal clear freshwater lakes. This region offers excellent investment opportunities as well as natural beauty.

Over two million visitors a year flock to Lake Tahoe to enjoy snow and sun. Visitors from all over the world travel to Lake Tahoe to experience some of America's best skiing. Leisure-minded skiers love the premier resorts such as Heavenly and Squaw. And, the hot tourism market isn't cooling down when the snow starts melting. An entire new crowd arrives to summer looking for sunny, warm days filled with hiking, biking and boating. There are 19 golf courses within the Lake Tahoe area including the two courses that are world-class at Incline Village framed by a beautiful mountain backdrop.

Gambling Attractions Boost Attraction

Lake Tahoe's casinos, which are open all yearround, further enhance its status as a world-class holiday destination that is all-season. The most popular events like the Summer Outdoor Concert Series, the Shakespeare Festival and the Renaissance Fair contribute to draw in visitors. In the end, half of Lake Tahoe is in Nevada, and South Lake Tahoe is centered around Stateline (the California-Nevada state border) where the areas https://israelvcbm158.edublogs.org/2021/12/14/forget-condos-10-reasons-why-you-no-longer-need-it/ largest casinos are located.

The question is, what do all these visitors share in common? Everybody needs somewhere to sleep when they visit to play.

Earning Investment Returns from Rental Properties

The worth of Lake Tahoe rentals properties has steadily increased at a higher amount than the national or states over the past few years. There is no doubt that Lake Tahoe real property values will increase over the next few years. The roll-over boom, which can be a strong indication of an area's investment potential, is one reason. It is when a region grows due to its affordability as compared with its more expensive neighbors. The Lake Tahoe area is located at the heart of the important real estate hotspots with a positive growth forecast. Here are a few statistics to consider:

Nevada's population is projected to double in 2023, four times faster than that of the United States.

Reno, Nevada is currently placed at the top of the Metro Growth list.

The San Francisco Bay Area has encountered affordability issues, in which the cost of a home is more than the budget of the average homebuyer.

Rental properties are an investment that is profitable due to other economic variables. The U.S. GDP, unemployment as well as consumer price indexes interest rates, and the U.S. gross national product all impact the real-estate market. According to the National Association of Realtors, the U.S. gross domestic product should rise from 3.7 percent in 2005, to 4.1 % in 2006. The Consumer Price Index is expected to rise by 2.9 percent, and the disposable income adjusted for inflation is projected to rise 4.5 percent in 2006. In addition, despite recent modest increases rate of interest, they remain at record lows.

With the recent pause in the rate of price rises and the recent pause in price increases, it may be the ideal time to start a venture in the income producing rental market. In reality, the second or vacation market for homes is the fastest-growing segment of investments in real estate today. Lake Tahoe is a popular investment destination because it's a top-rated recreation destination and has a bright future. Investors can choose between two alternatives when it comes down to Lake Tahoe vacation properties. One is a full-time rental, and the other is a vacation.

Vacation Rentals in contrast to Full-Time Rental Properties

The advantages of a full time rental lies in the consistent income the owner collects, while the tenant pays most of the utility costs. There is currently a shortage of South Lake Tahoe full-time rentals. This has led to the vacancy rate being of close to zero. The average rental is in $400-500 per bedroom.

A vacation home can earn earnings that aren't consistent but has the additional benefit of the ability to be used for personal use by investors. There are currently only a handful of rental properties that allow for Pay for Play. With Lake Tahoe real estate, baby boomers could spend their holidays at their own rental property and enjoy the peace of mind and assurance that they have also done a smart investment. An investor may still be able to see this if a $500,000 home were to appreciate by an average of 7 percent annually, but not the 20-30% seen in the last two years.

$35,000 in equity appreciation per year

An annual rental income potential of $25,000

Significant tax benefits

A whole lot of enjoyment in the snow, in the sun and/or at the casinos

There isn't one perfect method.

Real Estate Investment Strategies

These are the most important questions to consider when deciding on an investment strategy for real estate

Can I afford to carry the mortgage or property tax as well as other real estate costs during the times in which the property does not rent or rents lightly?

What's the probability that my family could use this property enough to add significant value to this investment?

Which is more important for me at the moment, the assurance of being a renter for a full-time or the pleasure of a house for vacation?

Nevada Real Estate vs. California Real Estate

The California or Nevada issue is also a factor when buying property in Lake Tahoe. Which side is better: Nevada or California? Both offer distinct advantages. Nevada residents who live full-time enjoy the benefits of being in a state which doesn't tax their personal income. In contrast real estate situated on the California shore is as much as 50% less expensive between the South Lake Tahoe shore in California and the North Shore of Nevada.

Whatever way an investor invests California or Nevada full-time holiday rental or full-time Lake Tahoe offers many types of activities, as well in its attractiveness to investors. From my own experiences, Lake Tahoe real estate is a fantastic investment opportunity regardless of your goals for investment: the growth of equity, income tax leverage, or simply regular fun.