Real estate investment at Smith Mountain Lake is a profitable way of increasing personal wealth. You may think, as I once did, that buying a second home is too costly or frivolous, and that it is a stretch to make it work within your investment and retirement plan. But for many reasons buying at Smith Mountain Lake may be the best investment you ever make. I have chosen to invest a significant portion of my portfolio at Smith Mountain Lake, and many others have done the same.
The retirement of the Baby Boom generation means that tens of millions of people are in the process of finalizing their plans to make their big move in the coming years. The majority of Americans live in the East and will likely remain in this part of the United States upon retirement. It is no secret that a significant proportion of these retirees are looking to live by the water or in the mountains. They want to slow down their pace, yet they still wish to enjoy the culture of nearby cities.
Smith Mountain Lake truly has all of this and much more. Every year we hear the same comments over and over. Recently, a couple from Pennsylvania who found Smith Mountain Lake on a map scheduled a two-day visit to check out the area. They had been looking all over the Northeastern seaboard for a place to spend their golden years. Their trip turned into six days. They bought a beautiful waterfront lot, and their home is underway. They said they never imagined it would be so beautiful here. It’s people like this that are causing SML to grow in popularity every year.
Did you ever consider why the retirement of the Baby Boomer Generation is so significant to the value of resort properties like those offered here? Statistics say the Baby Boomers have the greatest wealth of any group in the history of the world. One reason for this is the significant income earned by these individuals in recent decades. Much of this has been plowed into retirement plans that will be available soon. Many people think that there is no better use for these funds than to purchase a place to enjoy and continue to see value growth.
A second reason for this Baby Boomer wealth is the unprecedented growth in home equity during recent decades. I regularly interact with clients who bought a home for around $100,000 that is worth close to a million dollars now.
Another often overlooked factor is the release of massive funds through inheritance. Statistics say that $8 trillion (eight with 12 zeroes) is being inherited from the passing of the WW2 generation in one decade. Amazingly, these funds are being received by the same people with incredible wealth in retirement plans and home equity! And these are the same people who often want to live near water and mountains, often in the Eastern US.
All marketers know that massive revenue will be generated wherever the baby boom population arrow is pointed. In the 50s, it was Gerber baby food. In the 70s, Levi Jeans. In the 90s it was mutual funds and VHS players. Now the arrow is pointed directly at retirement and expensive recreation. This is why Warren Buffett, who looks at 20-year trends when investing, recently bought one of the world’s largest RV manufacturers. And multi-billionaire real estate investor Sam Zell has reportedly purchased several high-end RV campground properties. Do you see how Smith Mountain Lake perfectly fits this bill?
David Stevens is the President of the Mortgage Bankers Association, and former FHA Commissioner. David passed over waterfront properties all over the East Coast to purchase a vacation home here at SML. David said, “The Smith Mountain Lake area is a hidden gem for long-term investment value. The ability to buy waterfront property at affordable prices, on one of the most beautiful lakes in the nation, still exists at SML. With the aging population aiming towards retirement on or near the waterfront in temperate climate areas, combined with the unique timing right now of almost record low-interest rates and a wonderful inventory to choose from, buying a home at SML…may prove to be one of the wisest investment opportunities for real estate available in the mid-Atlantic or Southeastern US.”
The pieces of the puzzle fit together well. Does it make sense for you to contact us to discuss investing at Smith Mountain Lake? I hope you’ll call or email us today.