In my blog last week, Are Colorado ski towns running a Pyramid scheme, addressing the question of whether tourism is actually paying for itself or are ski towns papering over the tourism issue to continue to increase their budgets. The results were crystal clear.
What was in the survey data on Colorado ski town Pyramid scheme?
I was not surprised by the results, 80% of respondents felt that ski towns were running a pyramid scheme trying to replace revenue with more and more tourism even though the existing tourism isn’t fully paying for itself.
Top Comments on are Colorado ski towns running a Ponzi scheme
The ski resort communities typical governmental/economic policy framework is progressive, leaning into a command economy. History shows that such systems have failed and cause to a painful economic realignment so to return a market equilibrium. At some point – continue to tax, redistribute treasury funds to favored projects cause negative economic stress that will break.
Ski towns have no way of predicting the fluctuation of income from tourism take Covid till now. Real Estate prices are reflecting the trend. Ski Towns need to set base expectations on residents levy’s and then back fill from tourism however I seems that ski towns are falling into the hole much like the blue cities. Never ending taxes Neverending wishes
My sense is the leadership sets up structurally flawed budgets based on “pie-in-the-sky” inflated revenue projections. The result: budget deficits. Then the same leadership schedule’s emergency meetings to devise increased tax revenues on the community.
Summary
The results from the last survey were surprising in that 80% felt that ski towns were for all intensive purposes running a pyramid scheme where new tourism is being used as existing tourism isn’t paying its way. The last 5 years this strategy worked as tourism was growing at double digits, but now, the music has stopped and almost every ski town is feeling the budget constraints. Thank you everyone who participated in the survey, your insights are amazing
Additional Reading/Resources
- https://coloradohardmoney.com/vail-loses-major-lawsuit-should-you-only-buy-real-estate-in-a-vail-resort/
- https://coloradohardmoney.com/are-colorado-ski-towns-running-a-pyramid-scheme/
- https://coloradohardmoney.com/colorado-property-taxes-jump-40-percent/
- https://coloradohardmoney.com/category/survey-results/
We are a Colorado Private/ Hard Money Lender funding in cash!
If you were forwarded this message, please subscribe to our newsletter
I need your help as my goal in writing these articles is to provide the best information/insight on Colorado Real Estate that you cannot get anywhere else! Please like and share my articles on linked in, twitter, facebook, and other social media and forward to your friends/associates I would greatly appreciate it.
Glen Weinberg personally writes these weekly real estate blogs based on his real estate experience as a lender and property owner. He is the owner of Fairview Commercial Lending. Glen has been published as an expert in hard money lending, real estate valuation, financing, and various other real estate topics in Bloomberg, Businessweek ,the Colorado Real Estate Journal, National Association of Realtors Magazine, The Real Deal real estate news, the CO Biz Magazine, The Denver Post, The Scotsman mortgage broker guide, Mortgage Professional America and various other national publications.
Glen resides in Colorado, lends in Colorado, owns property in Colorado, and services loans in Colorado which provides a unique real estate prospective of what is actually happening on the ground both in Denver and throughout Colorado. My goal of this real estate blog is to provide an honest assessment of what I see happening in Colorado real estate and how it will impact real estate owners, buyers, realtors, mortgage professionals, etc…
Fairview is the recognized leader in Colorado Hard Money and Colorado private lending focusing on residential investment properties and commercial properties both in Denver and throughout the state. We are the Colorado experts having closed thousands of loans throughout the Front range, Western slope, resort communities, and everywhere in between. We also live, work, and play in the mountains throughout Colorado and understand the intricacies of each market.
When you call you will speak directly to the decision makers and get an honest answer quickly. We are recognized in the industry as the leader in Colorado hard money lending with no upfront fees or any other games. Learn more about Hard Money Lending through our free Hard Money Guide. To get started on a loan all we need is our simple one page application (no upfront fees or other games)
Tags: Denver hard money, Denver Colorado hard money lender, Colorado hard money, Colorado private lender, Denver private lender, Colorado ski lender, Colorado real estate trends, Colorado real estate prices, Private real estate loans, Hard money loans, Private real estate mortgage, Hard money mortgage lender, Hard money mortgage lender, residential hard money loans, commercial hard money loans, private mortgage lender, Hard Money Lender, Private lender, private real estate lender, residential hard money lender, commercial hard money lender, No doc real estate lender