MIke Kennedy of the Railey Realty Blog confirms that Deep Creek properties were better investment values in years past ..

see his recent posting concerning rental incomes from various lakefront properties and his subsequent reply to a comment about cap rates. The bottom line is that from an investment perspective much better relative cash flow returns were available in past years when prices were considerably lower. I have disagreed with some of the things Mike has had to say in the past but of all the local real estate bloggers he is by far the most objective and generally a good source of information. He'll tell you lakefront values are up because average selling prices are up and I'll tell you people are building bigger houses with more amenities (such as pools) so the numbers are lying to some extent. Both perspectives should at least be considered so if you've been reading my blog - and want to see the counterpoint - be sure to follow what Mike has to say on the Railey Realty Blog as well.

Mike's point on the 5% return for a select property is well taken, but I should also point out that there are a number of reputable American businesses in the stock market that you can buy in part and collect annual cash dividends (that could pay for vacations as well) between 3-10% of your initial investment. Just a few names: Johnson and Johnson, Kraft Foods, Coca-Cola, Caterpillar, Boeing, Wells Fargo, US Bancorp, JP Morgan Chase, AT&T, Verizon, General Electric, DuPont and Dow Chemical (yes, I do own some of these directly and will continue to acquire more shares over time, I also suspect anyone with a 401(k) owns all of these indirectly). From my point of view many of these currently offer good investment value just as Deep Creek real estate did ten years ago. There are a lot of investment choices out there and I think some people get stuck in a rut of sticking to a certain class of investments even when others make more sense. I would encourage all readers to consider real estate, stocks, bonds, etc and talk to a reputable financial planner/advisor to determine what works best for your own personal situation.

Happy Thanksgiving 2008!!

Don't forget to check back to Dan's Deep Creek Blog for future updates.