Land in Breckenridge; for millionaires only?
Do you have to be a millionaire to buy land in Breckenridge? It would certainly help! Of the 91 lots currently for sale in Breckenridge, only 11 are under $250,000. Of those 11, 3 are in the Tiger Run RV Park and 4 are high up on Hoosier Pass. Yesterday when I checked we had 12 under $250,000, but today, only 11. Our market is moving very quickly and that is pushing prices up. What it means to you is that all newly built homes going to end up being well over $1,000,000 as banks don’t like builders to spend more than 25% of the price of a home on land.
For some people it is no big deal. Take the people who will be buying the 18 lots that are over $1,000,000. If you woud like your ski-in/ski-out home to be at the base of Peak 8, there is a lot for you. All you need to do is shell out $2.5M for a one acre lot or $1.8M for a half acre. Let’s see, that means the house will have to be at least $10,000,000…. Aspen, here we come! 
We currently have 20 homes listed that are priced over $3,000,000 with the highest priced one being a ski-in/ski-out home in Breck for $7,000,000. However, in the last year only four homes in that price range sold, and the highest priced one topped out at just under $4M. These homes could be on the market a year or two, but then again, who knows?
And back in the real world…..do you want to be on a golf course but don’t want to spend quite that much for your lot? There are still some reasonably priced lots at the Three Peaks golf course in Silverthorne. And we have a wonderful, private lot listed in Hamilton Creek for $375,000. It is on a half acre, but it feels like five acres as it is surrounded by open space that will not have homes built on it. It has fabulous views of the Gore Range.
It is increasingly hard to find lots under $250,000 and the situation won’t get better. Most inexpensive lots have some sort of expensive problem; usually they are either steep or wet, and both require lots of engineering, and therefore money. And I think it was Will Rogers who said, “Buy land, they ain’t making any more!” Even way back then, he had it figured out. Today it is even more true.
June 6th, 2007 at 7:44 am
For the average 9-5 family living full-time in Breckenridge is a challenge. The only way we can afford to live here is with deed-restricted housing. Without it, most of us would have to live in small condos or 30+ miles out of town.
June 6th, 2007 at 8:12 am
Hi Jared,
I don't know if you read this post I wrote a month or so ago, but it talks about deed restricted housing. http://www.mountain-living.com/blog/20...houses-but-you-probably-cant-buy-one/
If we didn't have deed restricted housing, locals would really be in a tough spot. It is hard enough as it is!
June 17th, 2007 at 9:09 pm
I have a second home in Naples Florida, and the same applies. Now the market has softened a bit, but truthfully a regular working class family can not afford to buy a home in Naples. But so many thousands of working class families are needed to work in the industries that surround Naples.
I cringe though at “deed restrictions” … I don’t know yours, but the ones in Madison Wisconsin are draconian and socialist. They acually suggest a selling price and “set-aside” lots in neighborhoods for “unattainable families” Horrid and counter-productive.
What’s really needed is some leadership by cities or towns, they may very well have to develop some regular housing for regular people.
June 17th, 2007 at 9:23 pm
Hi Steve,Our deed restricted properties are usually scattered throughout the community. In Frisco, if you build a deed restricted unit into your development, you get one extra bonus unit, so on a half acre lot that is zoned at 16 units per acre, you might be able to put ten units; eight plus one deed restricted plus one bonus.
The deed restriction is almost always that you must work at least 30 hours a week within the county, and sometimes there are appreciation caps as well. Usually 3% or the Consumer Price Index, whichever is greater. I find a lot of locals would prefer to buy a smaller, market priced condo rather than be limited to 3% appreciation when second homeowners are seeing 10 to 12% a year. They don't think it is fair, but there really is no other way to have it continue to be affordable as it passes from owner to owner.
In a couple of condo and townhome complexes where all units are deed restricted, they limit rental time frames so that you cannot rent for less than six months. That eliminates the second home owners who want to rent short term, but does allow second homes with only personal use. It restricts the buyer pool enough that it keeps the prices down, but the local can still get a little better appreciation than 3% in times when our market is very strong.
