It’s no secret that Alabama is home to more navigable water than any state in the Union, but what is a secret are the myriad of factors that make Alabama a great lakefront property investment! Let’s dive right in.
Our natural resources in Alabama in the way of rivers and lakes give lakefront buyers a lot to look at for their getaway or next investment. From the deep, clear water of Smith Lake to the perfect location of Weiss Lake to both Georgia residents and bigger Alabama Cities like Birmingham and Huntsville, there’s something for every budget. But don’t let the options lead you to believe that there are an abundance of lake homes for sale! The laws of supply and demand command attention even on Alabama’s lakes. Frankly they’re not making any more lakefront property. Building lots are getting harder and harder to come by, and that leads us to another reason why now is the time to invest in Alabama.
Most of Alabama’s lakes are man-made reservoirs created by damming our rivers, most notably the Coosa River in eastern Alabama which created lakes Weiss, Neely Henry, Logan Martin, before joining the Tallapoosa River system to the south. These lakes typically create hydroelectric power for growing cities in the region – which limits expansion of new lakes in the future. As people look to the great outdoors outside their cities’ borders, the lakes look like a perfect getaway. That attention drives up prices on lakes higher than nearly any other attractor like businesses or schools. But there’s still good news for buyers!
Alabama’s tax structure creates property taxes lower than nearly all of the other states, especially the ones surrounding the state like Tennessee and Georgia and Florida. Alabama property taxes are a 1/3 of Georgia’s for example. To drill that point home, the most expensive lake home currently on the market in Alabama at $3.7m brings a tax bill of just over $10,000 annually. The same priced property in GA would be $33,000! For retirees or folks fleeing states like California, Alabama looks like a great place to stash the cash so to speak.
While the current economy is concerning to say the least, interest rates are still cheaper than they were even in the 80s. Money is cheap with interest rates in the upper 4% to mid 5%, making investment a solid option in real estate. Airbnb and Vrbo also help to offset lake home ownership for many sellers. In fact, several of my buyers are getting paid to own lakefront property! More and more owners and buyers are looking at Airbnb as a viable option to keep costs of ownership down.
Our slogan stands. Life is short. Buy the lake house!