Summarizing Cabin Investments for 2009 in the Smokies
Summarizing the sales environment, current cabin incomes and foreclosure and short sale opportunities at the beginning of 2009, one fact becomes obvious: owning the right cabin in the Tennessee Smoky Mountains is a strong and stable investment. While realistic price adjustments have occurred after a 15 year boom which reached an over-heated peak at the end of 2005, the cabin market is in the process of recovery in 2009 and should soon resume its traditional 3% to 5% annual value growth. Due to the leveraged nature of a cabin purchase, 3% to 5% annual appreciation provides a significantly higher return on investment than that and out performs many equity investments (stocks, bonds, etc) with a stability such investments do not offer. Plus, it provides the owner with their own Smoky Mountain retreat from the humdrum and hassles of every day life.
I mention in my literature what a mentor told me when I first entered real estate as a career: “You make your money in real estate when you buy it”. Current market conditions make this a prime time opportunity to successfully take advantage of this truism.
How long the recovery takes will be impacted by progress in the improvement of the national economy. However, with prices legitimately appearing to have bottomed, mortgage rates extremely attractive, gas prices back at reasonable levels and a strong rental market for quality cabins in the Tennessee Smoky Mountains the buy signals are apparent and strong.
Might I add that in analyzing this market after the trying times it has experienced, the information contained in my “Buyer’s Guide” is accurate and will be of value to you in consideration of a cabin purchase in the Smokies. Especially interesting is the breakdown of the sizes of cabins included in the foreclosures and short sales. On the foreclosure list (9 total) and the short sale list (25 total) the break down is:
One Bedroom: Foreclosure- 1 (11%) Short Sale- 2 ( 8%)
Two Bedroom: Foreclosure- 3 (33%) Short Sale- 11 (44%)
Three Bedroom: Foreclosure- 3 (33%) Short Sale- 6 (24%)
Four Bedroom: Foreclosure- 0 ( 0%) Short Sale- 4 (16%)
Six Bedroom: Foreclosure- 1 (11%) Short Sale- 1 ( 4%)
Eight Bedroom: Foreclosure- 1 (11%) Short Sale- 1 ( 4%)
For the reasons mentioned in the guide, 2 and 3 bedroom cabins are generally not the best investment choices. If you need another copy of the “Buyer’s Guide”, email me and I’ll send it.
When you are ready to pursue your dream of owning a second home/ investment cabin in the Great Smoky Mountains, contact me and I’ll help make this a successful venture. I serve at your pleasure.