People are unique and are motivated by different things. But for buyer’s of vacation homes in Big Bear Valley there really is one common denominator for a successful experience. Can you guess what that is?

This will sound simple……. the successful buyers for Big Bear property’s primary motivation is to enjoy the property for their own personal use.

The greatest myth is that you can buy a Big Bear property as an investment and have it pay for itself. Based on my 25 years in Big Bear I have only heard of a couple of cases where property owners even made that claim. The truth is that the normal vacation rental only returns about 35% of the total cost of ownership if you have a loan payment, taxes, insurance, maintenance, and utilities costs. For years owners have successfully subsidized their ownership costs. But their primary motivation was to use the property for themselves.

Even full time monthly rentals in Big Bear Lake historically have not produced a break even cash flow let alone a positive one.

During the last real estate boom from 1999 to 2006 many people bought property in Big Bear as an investment vehicle and had no interest in using the property themselves. That strategy only works in Big Bear during strong appreciating real estate cycles.

The best advice I can offer someone interested in Big Bear property is to be clear about their primary motivation and to have realistic expectations about the cost and rewards for owning their own home.

Long term, Big Bear property appreciates just like every market but there are long periods of no appreciation and there have always been periods of falling prices after each up turn in the market.

Here are the reasons now is a great time to buy in Big Bear. We are at the bottom of a real estate cycle and property values are headed up not down. Big Bear offers natural beauty, an alpine lake, snow and water skiing, mountain biking, horseback riding, hiking, camping, clean air, and a slower pace to recharge with your loved ones.

I would love to hear your thoughts!