lake and recreation area

Since 1998 i have been making purchases of land/cabins around lake areas that i think are underdeveloped.

In general, i have found that many of these sites are better suited to redevelopment than rental properties.

Does anyone have any experience in this field that would like to share ideas or ask questions?

What area are you in?

Upper Midwest. Genreally buying around larger lakes (not the great lakes, but 5000 + acre lakes).

What’s the makeup of these areas, are they mostly vacation homes or are there a lot of year round homes?

Many of the properties are vacation homes, or more specifically the nice homes in the area(s) are vacation homes.

3 seperate lakes I’ve made the most buys.

2 Lakes, have not seen a sale yet over 1mm. 3rd lake has seen 8 sales over 10 years at around 1mm.

1 Lake 2 hours from metro markets.

2 lakes 4 hours from metro markets.

As a note, I am looking at each of these markets as redeveloment markets, each has access to public utilities infrastructure.

Interesting. I know people that own property on a lake near hear, if they were to sell it they’d make a killing. Their father bought the land in the 1940’s at the time only a girlscout camp existed on the lake. Now its cottages all around and some of the cottages are being quickly replaced with LARGE year-round homes. Prices went through the roof fast down there. This is in CT btw.

I think that there is strong, deeply researched statistics that support a strong 2nd home market, for homes 500-1mm. I think that it does not just suffice to say “its the baby boomers” rather I think there are many other investment objectives and tax treatment objectives, combined with individual thought patterns about “family” ownership that support 2nd home development as a long term strategy.

An area I no familiarity with are the new england states (other than I have dated on and off a cute girl from Wister, MA ← not sure of the spelling).

A unique thing I have found about my purchases are that they all are situated with municiple infrastructure of water, sewer, gas, etc.

I dont know if this is the norm, or unique. But buying land without that infrastucture to me, is a riskyer proposition, possibly limiting a highest and best use of denser development.

Yeah that’s definitely not the norm at many of our area lakes. Many have well and septic with propane as the gas of choice, not publically piped natural gas. No problems with electricity, all regular service.