In our previous blog, we wrote briefly about the potential bounce that investment property values can see this summer. As we stated before, the time is now to invest in your Smoky Mountains cabin or other rental property; today, we’ll show you some of the signs that the window to invest affordably in Gatlinburg is closing – fast.
From the Ashes
With around 100 properties being labelled as “destroyed” for the sake of insurance claims, it is a sure thing that these places will be rebuilt. The interesting thing about this post-insurance market is that there soon be an influx of modernized cabins and investment properties that were sewn with insurance premiums and bundled labor. Already, we can see carpenters, contractors, architects, engineers, and every other aspect of the construction and homebuilding industry from across the state flocking here to bid jobs for those seeking to rebuild. These new homes will be worth a staggering amount over what they cost to rebuild, regardless of current market prices. Think about it: An outdated Smoky Mountains investment property is still worth far more than it costs to build a brand new luxurious home, regardless of the location. These brand-new homes will retain the current ownership for only so long before the potential profits from a home sale become to alluring for their perennial owners, and this point in time will mark a dramatic movement toward a seller’s market.
Long before the post-construction seller’s market era, there will be another push towards the coming seller’s market. Some homeowners, after all, won’t want to rebuild after their investment property was wrecked or damaged by the fire, and they will choose instead to take the insurance money and re-invest in an already built home, leaving the building rights to someone else. As far as the region is concerned, zoned property (however unlivable) is still available for sale. Smoky Mountains investment properties are largely valuable because of their land and location, not necessarily the amenities, which can always be added later. These plots of land will be worth a pretty penny, and represent a prime opportunity for anyone brave enough to take advantage of the swollen construction market surrounding Gatlinburg. Likewise, those that take their insurance money and look to replace instead of rebuild will, in turn, drive up the value of already-standing homes long before the new construction is completed.
Gatlinburg’s fire was a tragedy, but in tragedy there is opportunity. Every sign is pointing to a stronger, tougher real estate market entering the Smoky Mountains region shortly, so the time to act on the investment property of your dreams is irrefutably now. Don’t let a few months of hesitation cost you thousands in procrastination tax, contact our experienced Smoky Mountains real estate agent and investor to get the property of your dreams today!