______________________________________________________
Check out the New York Times featuring Lake Burton Home!
Click on the above link to view.
_______________________________
Buyer Asks:
I am trying to get an idea of what the valuations should be on the lake. I know you said that prices had been going up on average 15% a year. Was that just the last couple of years. I don't think 15% is realistic in the future. Do you have the average yearly % increase for say the last 10-20 years. I am curious if it has gotten out of whack the last few years with the housing bubble. Do you anticipate a reset in the pricing similar to what has occurred in the rest of the housing industry or do you think Lake Burton will be able to resist it. I guess no one knows until someone makes an offer and it is accepted.
Sellers Respond:
* The price rise in the general real estate market across the country was unsustainable as it had no backing in the real world to justify the yearly increases. The prices at our three lakes are different for several reason, there is no competition for these lakes within a two hour drive of Atlanta, secondly Atlanta only gets closer and closer and the wealth in Atlanta is on the north side of the city, and thirdly our lakes are mostly controlled by Georgia Power leases and the actions to date for this lessor has held standards that have created the "I would love to have a place on this lake" feeling in everyone who even drives by the lakes. Prices may steady until the wave of panic subsides but the overall trend can only be upward. Anyone who can afford and wants to buy and believes the Geoprgia Power Company's policies will not change would be wise to act. There is another intangible fact about these lakes. Anyone with real roots in Georgia has heard their Grand Dad or Uncle or next door neighbor kid say "we used to have a place on Burton" and "I can remember how much fun we had "and "I wish we still had it". There is a cult culture surrounding these lakes that translates into desire and that into sales. This is God's Country.
*My father bought the tear-down lease in 1954 for $1000. I ran the numbers at 15% annually and the 2008 value is $1,895,323. I would call today's sales on the lake flat, but I am confident that within 24 months the USA will again be on a firm foundation for growth. Creative economics and inflation will correct this period of uncertainty. We've been down this road several times. Is 15% realistic in the future, I think so. Lake Burton is the diamond of all lakes in the state of Georgia and always will be. Take a close look at the other lakes and tell me there is nothing unique about Lake Burton. . .Over the years buyers would question their decision to buy and the next week they'd be telling their next door neighbors in the "city" they best buy now. There probably are a couple of under-market buys for sale at the moment. Times like these always create a fire sale or two but over the long haul the numbers speak for themselves. My recommendation to those that question the value of Lake Burton take your money and buy at Lake Oconee. The lake level never varies more than a fool or two. Unfortunately, the water is muddy and the depth is three feet.
*I think to get a realistic picture you would have to take the average price of the homes closed on in a given year and then compare that average year over year. 10 years of history would give a great picture as to the appreciation rate. When I bought in on our lake house in 1996 and if we could sell it today at the listing price that would be around a 9% annual return. It is probably the best lake in the southeast. It is more than just your typical lake house place, you get the beauty of the north Georgia mountains, nearby towns such as Helen for shopping, several antique stores, hiking, mountain biking that offers year round use if you are so inclined, trout fishing on the streams feeding the lake and not to mention some of the most spectacular lake homes you will ever come across. Then you can name drop all of the celebs and who's who that have a lake house there, if you get into that sort of thing. In addition to all of that there is also golf at the Waterfall County Club and 30 minutes away is a nice publicly accessible course at Brasstown Valley.
*Supply and demand. . . there is a very limited supply of "Lake Burtons" so there will always be demand!!!!!!! Pricing homes at the lake is difficult, and I would expect prices to be "soft" with this very tough economic times we are experiencing. Please keep inmind that the prices on the lake have gone up over the last 15 to 20 years, and will continue. But, I predict flat market prices for a while, that means no appreciation for a couple of years. However, I do not expect prices to drop (other than distressed sales if you can find one) on the lake because of the supply/demand concept.
*For the first time in a long time we have more houses for sale on the lake than we have buyers. Prices have gone up and not a lot of people can afford a 2 million dollar lake house. While the values may not go up as fast as they have in the past ,the lake is still very desirable and waterfront property will always hold its value. If you look at the surrounding lakes there is no other lake that offers a view of the mountains, has the altitude for cool evenings in the summer, has enough water for good boating and keeps its water the length of time that Lake Burton does. The closest lake in beauty is Toxaway in NC and it is more expensive and smaller. Lake Burton has been a good investment for me, its reasonabley close to Atlanta and it offers more than any other lake around-- take a look right now at Lanier, Hartwell, Chatuge and Blue Ridge and you will see.
It's true that the market is soft and lake homes are not moving as they have in the past. Lake Burton is the jewel lake in Georgia and will stay that way!!
Home
Powered By Envision Real Estate Web Sites
Copyright ©2003-2010 ShowCase. All Rights Reserved.