INVESTING IN NORTHERN MICHIGAN

 

If you value lifestyle in combination with an appreciation profile, there just might be a place in your portfolio for a Northern Michigan vacation home that makes financial sense.

Vacation home prices typically lag major market residential rates by 12-36 months.  But with asking prices for Northern Michigan waterfront and ski-proximate real estate up 10 percent to 20 percent this year (based on 24 month sold price per sq ft averages), discounting has not hit our market.

  

July is typically the height of our inventory accumulation cycle, with most if not all of the well-priced properties selling to a more confident buyer base. This was evident in 2018. With stock market indices setting all-time record highs, investors who were previously reluctant to redeploy capital may rethink their strategy as returns slow and profit-taking occurs with trading range consolidation. Momentum-driven exuberance is bound to fade quickly in the winter season of 2018/2019. If top-line performance continues to stagnate, it will pave the way for alternative asset-class investments — such as real estate.

While the obligations and negative cash flow aspects of ownership can sometimes be burdensome, the numbers still work as illustrated in the Investment Performance tab on our web site. Now is the time to explore the pluses and minuses of buying a Northern Michigan vacation home property as it fits your particular situation.

  BECAUSE IT'S NOT ONLY A HOME … IT'S AN INVESTMENT

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