Cheap Lakeside Property in Paradise
By Graham Summers
October 3, 2007
Last
month, I spent a week on the road in search of great American
real estate selling for reasonable prices...
I found it. See for yourself.
The
above photo is taken from a two-acre lot in Forest City, North
Carolina – about
one hour outside of Asheville. As if this view weren't spectacular
enough, the bottom of this natural valley is going to be converted
to a 35-acre lake within the next two years.
The
developers, a father and son team, Leonard and Jon Hollifield,
are awaiting the necessary permit to move ahead with the lake
project. As soon as they receive their permit – around
the end of 2007 – they'll begin pre-selling lake lots
for $150,000-$175,000.
This is pretty darn cheap given the area. Within 25 minutes
of Jon and Leonard's lake-to-be is another man-made lake, Lake
James. Lots there currently sell for anywhere from $350,000 up
into the millions. Within 45 minutes is Lake Lure, which National
Geographic calls one of the most beautiful man-made lakes in
the world. Lots there start at $1 million.
Both of these other areas are open the public. That is, residents
have to put up with day-trippers' jet-skis, nature groups, and
the like. In contrast, Jon and Leonard's lake will only be open
to residents.
I've said many times that U.S. real estate was not in a nationwide
bubble. Investors can find tons of value and great land at cheap
prices throughout this country. And as money flees from the markets
that have reached bubble proportions, it's going to flow into
other, cheaper markets.
Why would someone buy a lot at Lake Lure for $1 million when
they can pay $200,000 for a quieter, more private setting?
It's simple. They won't.
Jon
and Leonard's lots are so cheap because they're small-time
developers. "I can't sleep at night if I've got any debt," Leonard
chuckles. "Jon keeps saying we're selling these too low,
but it's not like we've got millions and millions in cash lying
around to put into development costs. So we're looking to sell
quick, rather than high."
Once
the lots are officially on sale, they'll be going for $200,000-$250,000
depending on the view. Pre-sale buyers could potentially flip
their properties and make a quick 30%-40% gain.
However, if you're looking for a getaway home, this is the best
thing I've seen so far. But you should only consider a market
like this if you're looking for something rural. Forest City
is 10 miles away. You can go there for any of your basic needs:
groceries, hardware, etc. And then you've got Asheville, Charlotte,
and Greenville all within an hour's drive or so.
As the correction plays out in the overblown markets of California,
South Florida, and New England, the hills of North Carolina are
a cheap place to watch it without a care.
Good trading,
Graham
P.S.
If you're interested in The
Ridge at South Mountain, you
can read more about it here or
you can contact Jon and Leonard's firm directly at 800-463-9980.
