|
 So in what way is buying a resort condo a good investment? There
are several very good and profitable reasons to buy a resort condo or home.
The challenge with
real estate, and partiularly investment real estate, is that the due diligence
required is significant (in fact in recent years the same is true of stock
market investments) and requires a trusted relationship with a real estate
professional that you allow to do that homework for you. Call 843-338-9543 or
email Linda Warnock, CPA, and Meyers Team member at
Linda@LarryMeyersHHI.com She
can consult with you on your objectives.
Low interest rates and baby boomers are
fueling the red-hot vacation property market. (Link to:
Market Activity). Consumers in record
numbers have bought and are buying vacation property to add fun, excitement,
enjoyment, and status to their lives with the benefit of it being a solid real
estate investment in their asset portfolio. Some buyers purchase a beachfront
or golf condominium vacation property as an eventual retirement home and others
buy as a bottom line investment seeking high appreciation.
How is this
accomplished? The truth is that on average, condo rental programs rarely
deliver much more than twelve to fifteen weeks of rental annually.
There are numerous buying motives, but if you own a business, you may have
additional incentives. A vacation property can be a great business booster.
As a Hilton Head Island/Bluffton professional in the resort real estate
industry, one area of discussion that we have to deal with time and time again
is the false expectation created by many that an investment unit is going to
cash flow positively. The challenge for the buyer often is a pre-conceived
notion that they are going to buy a unit and never have to put any cash into
it.
Why Hilton Head Island real estate? The Hilton Head Island resort market of
oceanfront, beach and golf condos townhouses and homes you are contemplating
buying in are some of the most exclusive luxury real estate markets you can
find, and historically remain that way for the next ten to fifteen years.
Hilton Head and Bluffton, SC are lifestyle destination areas. After all, beach,
golf, watersports and a relaxed lifestyle are in high demand.
As a resort island
investor buyer of luxury homes, you may experience price increases that
developers often work into their programs and population shifts.
The
rental revenue from golf and beach condominiums can contribute greatly to
offset your costs of ownership and financing. That means you can build your
investment property asset base faster.
Here are a few other
"business booster" ideas used by present owners:
. Besides personal benefits for your family, you can use your vacation property
to promote your business, increase sales, motivate and reward employees, and
develop rapport and relationships with key customers.
· As an incentive, reward key employees by giving them the use of your
vacation property (could be a weekend, a week, or longer).
· Use your property for your "Employee of the Month" program. For
example, the monthly winner gets a free weekend at your luxury condo at the
beach.
· Hold staff meetings at your golf or seaside property. Get out of the
office and into a more relaxed and private environment. Employees will welcome
a business trip that breaks the routine. After your meeting, get everyone to
participate in a walk down the beach, tennis or golf in Palmetto Dunes, Sae
Pines or Shipyard Plantation.
By leveraging your
purchase you could stand to make substantial short term ROIs - for instance, if
a buyer purchased a $400,000 property and put down $80,000 or less as a
deposit, financing the rest using ARM’s or interest only loans, the
increase in new price and the market dynamics could perhaps allow that investor
to sell the unit in twelve months time for $500,000.
The bottom line is that while the opportunity
to profit is great, the place you need to look for profit is based on your risk
comfort level where the experienced professionals on The Meyers Team can guide
you.
A final thought
-- many vacation property owners appreciate the rental income from their
property because it helps pay property expenses.
|
