Are Ski Condos a Good Investment?
It’s the middle of summer, so skiing may not be at the top of your mind. But properties in ski-hubs are popular year round and can present an excellent investment opportunity, as long as you do your research. Ski condos, in particular, can be a great rental asset, regardless of the season. Read our article for tips on ski condos as a real estate investment option and how to choose the right property.
Benefits of a Ski Condo versus Stand Alone Properties
Amenities and Convenience
Ski condos often have built-in amenities that attract guests, which means you can count on a steadier stream of tourists and locals to occupy your unit. While stand alone chalet’s may have a certain charm, condos often come equipped with both convenient and more luxurious amenities, such as:
- Laundry facilities
- Pool/hot tub
- Outdoor gathering areas (fire pits, picnic tables, etc.)
- Vending machines
- Shuttles and other transportation
These amenities have made condos the top choice for mountain stays, edging out cabins and other stand-alone options. In 2022, condo rentals accounted for 55 percent of winter ski resort accommodations, according to Vacasa.
Ski towns are just as fun in summer as they are in winter. Many are designed for a variety of outdoor activities, including horseback riding, cycling, hiking, ziplining, and more. Colorado’s mountain towns have music festivals, farmer’s markets, and other special events that keep tourists coming 365 days a year.
These attractions can be easily reached from a condo that offers shuttle services, bike rentals, and other conveniences that stand alone properties do not have.
Stand alone properties, such as cabins and chalets, will need to be winterized to withstand the colder temperatures. A condo will come with an HOA that will handle such tasks as snow shoveling, pipe insulation, and clearing gutters. This is not only convenient, but also appealing to renters who can count on a unit that is consistently maintained.
Tips for Buying a Ski Condo
1. Buy Off Season
Although ski towns are busy enough in the summer months, they can have four times the amount of visitors in the winter. Demand means increased property values and reduced inventory. If you want to maximize your investment, look to purchase a ski condo in the offseason (spring/summer).
2. Buy in the Right Area
Obviously, you will want to buy your ski condo in an area where you will have tenants for as much of the year as possible. Research potential areas with a real estate agent who has experience with ski vacation rentals. He or she can review current trends with you and help you select an area with a higher potential for profit.
3. Secure the Right Financing
The type of financing you have can be the difference between a sale and a pass. Cash is often the best way to close a deal quickly and avoid a bidding war, especially in a competitive market like Colorado.
The next best option to cash can be a hard money loan from a reputable lender. If you need to secure financing quickly for a real estate investment project in Colorado, contact Pine Tree Financial Partners. We understand the importance of speed and efficiency when looking to close on a competitive real estate deal. We handle all applications on a case by case basis and will work with you to advance your portfolio. Call or go online today to get started.