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| The Private Resort Home Market: An Investment Outlook |
Liquid Assets
John Ferry
06/01/2005
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Dale Anderson of Canton, Ohio, an oil and gas exploration company owner,
chose to purchase a home at the Paraiso del Mar development in La Paz, Mexico,
because he loves the ocean. “I have previously owned condos in Marco Island,
Fla., and Hilton Head Island, S.C. We sold those because, as lovely as those
places are, come January or February, I really like to go somewhere that’s
guaranteed to be warm.” After selling his Florida and South Carolina properties,
he purchased a penthouse condo, two three-bedroom condos and two two-bedroom
condos at Paraiso del Mar.
The investment potential is as important to him
as the lifestyle aspect. “I had a very pleasant experience on both of my other
investments, which has made me a less hesitant investor,” he says.
But
Anderson was fortunate. He managed to sell for a profit at Marco Island just
before the resort home bubble burst in the late 1980s. He purchased at Hilton
Head after the crash. “It was just luck. I didn’t know what I was doing,” he
admits.
Anderson considered other developments before choosing Paraiso del
Mar, including one at Cabo San Lucas, south of La Paz. “We felt that market was
too developed for us. We preferred to be somewhere that wasn’t such a heavy
resort area,” he says. Not surprisingly, his primary lifestyle priority when
vetting resort homes was their proximity to a large body of water, preferably
the ocean. “My wife and I both scuba dive, and we enjoy boating and beach
activities.”
Anderson remains sanguine about the long-term investment value
of his resort property. “I believe that oceanfront or near-oceanfront property
at least should be profitable over 20 or 30 years, because I think the number of
people that like to be near the ocean should always exceed the total
availability.” Back to Main Article: The
Private Resort Home Market: An Investment Outlook
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