Even in a plunging real estate market, you can profit if you know where to invest your dollars. So, do you know where you should be investing right now in this challenging real estate market? Here's seven reasons why Lake Tahoe is the answer.

#7: Incredible weather
Summer tourists in nearby Sacramento and Reno experience temperatures in the 100s. The Bay Area is socked with fog. Lake Tahoe summers, however, generally hover in the comfortable low 80s.

And, even though Lake Tahoe is known as a world-class ski destination, winters are uncomfortable too. An average January day ranges from 15 – 41 degrees with brilliant sunshine compared to Vail (0 – 31), Jackson Hole (5 – 28), and Stow (1 – 25). And the sun shines approximately 275 days a year.

#6: Year-round recreation attracts new buyers
Lake Tahoe has something for everyone. The pristine blue waters and sandy beaches provide swimming, fishing and sun bathing. Boating opportunities range from kayaks to sailing to motors. The forest and mountain trails draw hikers, bikers, rock-climbers, snow mobiles, snow shoes, cross country skiers and campers. Golf resorts range from lakeside to high desert. Photographers, painters and artists of all mediums flock to the area.

#5: Baby boomers are buying Lake Tahoe real estate now
Baby boomers are the driving force behind the resort market industry and they have only just begun to invest. Many baby boomers are now inheriting various levels of wealth from senior family members. At the same time, they are in their peak earning years and investing actively in second homes and retirement homes.

They are searching for second homes near beaches, lakes, ski resorts and golf courses. Lake Tahoe is one of the few second home destinations that can offer all three. All this at a time when sellers are willing to negotiate, makes getting in better than ever.

#4: Affordability
Reasonable pricing is one of the key reasons to invest in Lake Tahoe real estate. According to the South Lake Tahoe Association the price for a single family home within Lake Tahoe's South Shore is less than half the homes in Vail, Aspen and Jackson Hole.

#3: Opportunities for supplemental income
Lake Tahoe is a world-class vacation destination. Vacation rentals bring in subsidized income which can help cover the costs of your Lake Tahoe real estate investment. When a home offers the "Tahoe Look," dwells within a desirable location (near outdoor recreation) and includes amenities such as a hot tub or pool table, demand automatically increases. For example one of our current listings, a six-bedroom contemporary home has averaged an income of more than $125,000 for five years now.

# 2: High demand and strictly limited supply
In a nutshell, there is no chance of real estate over-development having a negative impact on the value of Lake Tahoe homes. Generally, supply is low and demand is high.

During the 2004-2005 "boom," investors and developers were throwing up houses at break-neck speed in hopes of huge profits. When this market came to a screeching halt, these areas were the first to see foreclosures. In Lake Tahoe, supply will always be in the favor of the investor because Lake Tahoe real estate is an environmentally protected area. That means growth is strictly limited.

# 1: Improve your quality of life:

Would you rather watch your investments or live them? Everyday, we hear those who have invested in Lake Tahoe real estate praise the benefits gained through living a less stressful and more joyful life. These benefits include better health, longer life, better relationships, and so forth.

Think about it. You can watch arrows going up and down or you could ride the chair lift up and swish your way down. You can listen to computer chimes or you can listen to the wind in the pines. What could be better than wrapping "quality of life" and long term investments into one "full benefits" package? The pay offs can be huge.

Theresa Souers, partner in the Lake Tahoe real estate company, Pinnacle Real Estate Group - Lake Tahoe has helped hundreds of real estate investors just like you profit from investing in Lake Tahoe real estate. Go to http://www.homeintahoe.com">www.homeintahoe.com to get free instant access to Theresa's insights and the best listings in the Lake Tahoe real estate market.