Rv Resorts Remain Solid Investment Despite Economic Downturn

Rv Resorts Remain Solid Investment Despite Economic Downturn



With news headlines sounding alarms like, "Joblessness on the​ Rise," "Mortgage Crisis Unfolds," "Record-Breaking Oil Prices," and​ "Recession Looms," one could easily assume that the​ U.S. economy is​ in​ for​ a​ dramatic downward spiral. Just as​ with other stories in​ the​ news, however, reality is​ much more subtle than the​ headlines. Although the​ short-term outlook for​ much of​ the​ economy is​ bleak, not every sector will suffer. "Even though we've seen some dramatic economic shifts – particularly in​ the​ real estate market – RV resorts and​ manufactured home communities continue to​ be sound investments," says Leon D. Meekcoms, President of​ Parkbridge Capital Group, Inc. (www.parkbridgecapital.com), a​ privately held real estate investment, acquisition, and​ brokerage firm.

Meekcoms attributes the​ strength of​ the​ manufactured home and​ RV resort markets to​ two underlying factors: prosperous Baby Boomers on the​ verge of​ retiring are trending toward having affordable second residences, while vacationers are opting for​ seasonal recreation within driving distance of​ their homes. "Properties within two hours of​ major cities and​ those that are in​ the​ Sun Belt will continue to​ appreciate and​ provide the​ foundation for​ increasing returns over time," says Meekcoms.

Pre-built resort cottages, commonly referred to​ as​ "park models," are perfect for​ cost-conscious Boomers. Maxing out at​ around 400 square feet, these mini-homes may look like cottages or​ cabins, but are legally RVs. "Park models are the​ ultimate hybrid," says Meekcoms. "They can be luxurious and​ have myriad amenities like a​ house, but without the​ tax implications of​ a​ permanent residence." Because of​ the​ dramatic increase in​ the​ popularity of​ park homes, manufacturers are enjoying keeping up with consumer demand.

Similarly, traditional RV manufacturers are seeing strong demand, and​ industry insiders estimate that over 8 million families will own recreational vehicles by 2018. Although one might assume that record-breaking fuel prices would discourage RV travel, Meekcoms says that the​ opposite is​ true. "Research indicates that those who own RVs overwhelmingly feel that RV vacations are much less expensive than other travel options," he says. "What we're seeing is​ that RV owners are spending less time on the​ road and​ more time at​ their destinations."

Trends in​ both park models and​ RV travel are strong indicators that RV resort properties are a​ wise investment, which is​ why Parkbridge Capital has focused on this market. "The number of​ upscale park model and​ RV resort communities is​ relatively small, so demand is​ sure to​ outstrip supply in​ coming years," says Meekcoms. "We're confident that buying, upgrading, and​ expanding existing properties will maximize investor return while providing Americans with an​ affordable, or​ even quite luxurious way to​ achieve the​ lifestyle that they desire."




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