|
|
Hilton Head Island, SC Bluffton, SC and Sun City Hilton Head buyers information
FAQ's |
Considering a permanent move,
second home or investment in rental villas that appreciate in value? Hilton
Head Island is the place to own. Ocean-oriented and golf villas have increased
in value at least 10% a year in the last decade.
The information on
this link is intended to inform and educate while providing a basic overview of
the real estate opportunities for Hilton Head Island, SC real estate, Bluffton, SC real estate, Hilton Head Sun City real estate and Sun City resales. As a buyers agent we are a Hilton Head Island, SC real estate buyers resource. I look forward to helping
you locate a Hilton Head area luxury home property that meets your life-style and price. Please email Larry@LarryMeyersHHI.com or call
1-866-746-3742 ext 888.
Hilton Head Island, SC and Bluffton, SC property owners generally
realize 93% - 97% of list price. 65% of Hilton Head Island real estate sales are to current Hilton Head Island, Bluffton, and Sun City property
owners.
VILLAS AND
CONDOMINIUMS 2007
Villas vs. Condos…What's the Difference?
While all villas are legally condominiums, most people refer to five story
structures as "condos" On the other hand, "villas" are often thought of as more
relaxed town home-type properties, usually along a golf course and just a short
walk or bike ride to the beach. Both condos and villas have a monthly fee
(regime fee) which usually runs about $500 and covers all exterior maintenance,
landscaping, pool, etc. Taxes run about $700 for every $100,000 in value.
Rental revenues range from $10K to $60K for the season from April through
September, depending on the location.
VILLA PRICES 2007
Prices for Palmetto Dunes SC real estate and Sea Pines SC real estate go up as you get near the
beach. Two bedroom condos with a decent ocean view begin at about $625,000 at
Villamare, two bedroom villas in newer properties (Windsor, Hampton Place) will
run in the $1 million-$2 million range. Hilton Head Island golf oriented villas in Palmetto Dunes, Sea Pines are priced from $350K
and up. Off plantation prices are less. You can still buy a 2- bedroom villa
a few blocks from the ocean in a price range of $175K to $300K on Hilton Head Island's Forest
Beach area.
LIFESTYLES
Is the area you vacationed in for
years necessarily the area you want to live in year-round? Remember, Hilton
Head has numerous communities (plantations), all with different personalities.
Some areas are strictly residential (Hilton Head Plantation, Palmetto Hall,
Long Cove) while others offer combinations of resort and residential living
(Palmetto Dunes, Shipyard, and Sea Pines). Before we start to look at homes or
lots, try to eliminate some areas and focus on others. We will do this by
establishing price parameters and discussing "quality of living" issues such as
amenities, beach access, and overall "feel" of the
community.
LOCATION
Keep an open mind about location. Of
course, everyone wants to be "on or near" the beach but many of us can't (or
don't want to) go into the $600K-$750K range to accomplish this. Examine your
vacation habits closely. Certainly the beach is a big part of the picture but
it is one of several things to do (sports, shopping, dining, etc.) Also, there
are plenty of good parking and access points. Finally, remember that near ocean
prices are less in other island areas so these might be worth investigating as
well.
WHAT'S RIGHT
FOR YOU!
(Develop and follow a financial plan) One question I ask
potential second home buyers is how many weeks they would use their vacation
property. My experience has been that if people use a property three weeks or
less, then it may make more sense to continue renting and possibly consider a
home site for future building. Secondly, to what extent would rental income be
important? Most properties have rental histories so you can get a good idea of
how the numbers look before you purchase. It is very unusual for a vacation
property to realize a "positive cash flow" but there are properties where
rental income is significant enough that out of pocket expense each month are
minimized.
Each of the professional rental agencies charge a percentage
of the weekly income and they advertize, do bookkeeping, handle small
maintenance and facilitate housekeeping services. Many of owners combine what
the rental agency does by renting directly and save the rental commissions.
This is easier than you may think and is the best way to work toward a good
cash flow. Many owners have no interest in renting to others and we have
properties more suited towards this type of owner. In 2006, my group sold more
villlas then any other company and we had total sales in excess of $375
million.
HOMES AND
HOMESITES
Perhaps you are only able to visit the island a couple
of weeks a year and in that case renting probably makes more sense than buying
a vacation type home or condo.
Where and what life-style do you envision
for yourself 5, 10 or 15 years from now? Buying a home site or home on Hilton
Head today is a great way to prepare for your future financial security. One
benefit to a lot purchase is the satisfaction in knowing that you are prepared
and destined to live on Hilton Head Island. A dwindling supply of buildable
lots and baby boomers moving towards retirement make a home site purchase on
Hilton Head Island a sound financial investment. A recent Barrons article
predicts that there will be an "explosion" in 2nd home and retirement markets
beginning about 2001 and we have experienced it. Our property values have appreciated consistently the last 10 years. Homesite prices in
2006 were up 7% from 2005.
BEACHES
One of the biggest questions to consider
is the importance of the beach. If it is essential that you be within walking
or biking distance to the beach then you can eliminate much of the island and
focus on ocean-oriented areas such as Palmetto Dunes, Sea Pines, Port Royal,
and Shipyard. If you are comfortable with a 10 or 15 minute drive to the beach,
you can get much more house for the dollar in river or sound area such as
Hilton Head Plantation, Palmetto Hall and Indigo Run. Similar homes in a
beachfront area are usually at least 30% more expensive than non-ocean areas.
BUILDING
COSTS
The cost of building on Hilton Head is in a range between
$125 and $175 per square foot with a middle range of about $150. The wide
variance is due largely to the number of features that you include into the
home.
TIMING ...BUY
NOW!
The island is quickly moving towards "building-out" when
every lot has a home on it. In those Plantations further along in this process
(Sea Pines, Palmetto Dunes) prices have accelerated at a faster pace. Realizing
this, some folks will buy a home at today's existing prices, rent it out for
several years and then move in when they are ready.
Many people who
have witnessed Hilton Head's price appreciation in the last few years have felt
that they "missed the boat". Yet the re-sale future looks tremendously bright
as, unlike most resort areas, there is little available land to build more
villas, condominiums or golf courses. And yet demand will increase strongly and
steadily for the next 15 years as baby boomers enter the 2nd home/retirement
market in record numbers.
TAKE ACTION
Below are some quotes from national
publications such as Forbes, Fortune, Worth and USA Today concerning the effect
that baby boomers will have in destinations such as Hilton Head. The bottom
line is that if you feel strongly that Hilton Head will be a part of your
future and you're financially ready to take action, buy now!
FORTUNE
MAGAZINE
"…buying real estate today reminds me of buying stocks in
the 1970's"
"Based on past real estate cycles, a market top is 10 years
away."
"Ready to own a sun-drenched beach front property? The best way to
acquire the dream is to be the landlord."
"Present demographics favor
second home ownership." There is the possibility that capital gains taxes will
be significantly reduced."
"We think real estate is the third inning of the
ball game…there's a long way to go…"
BARRONS
"The market
just keeps getting stronger for second homes near the water."
"As the baby
boomers age, they are hitting prime time as second home owners."
"It is too
late to get in on the boom? Not if you believe in demographics." "The measure
is whether you can get to the ocean without a car…but 10 years from now
there are only going to be more professional couples in their 40's and 50's who
want to walk the beach and there won't be any more oceanfront."
"Clearly,
when you are picking your paradise, waterfront is the most prudent investment."
"WORTH MAGAZINE
"…baby boomers will begin to retire in large
numbers around 2010." "…the vacation home group - those in the 45 to 55
range - has increased since 1990 and should increase rapidly through around
2010."
USA TODAY
"Prices of second homes are likely to continue to
appreciate faster than the general housing market…this is going to be a
strong market for several years." Mark Colabria, Economist for the National
Association of Realtors
"The sector of the population that will most
influence real estate values in the next decade are affluent baby boomers who
are moving into their vacation buying years at the fastest growth rate, making
resort areas the hottest property for investors…this buying cycle began in
1986 and will reach a peak around 2013." Harry Dent, Jr. The Roaring 2000's
|
|
Larry Meyers Real Estate
Dunes Marketing Group
16 Shelter Cove Lane ·
Hilton Head Island ·South Carolina · 29928
· Mailing: PO Box 21326, Hilton Head Island, SC 29925
toll free: 866-746-3742 · local: 843-842-0888·
cell: 843-338-9543 · fax: 843-842-4330
Email:Sales@LarryMeyersHHI.com
all rights reserved © Larry Meyers Hilton
Head Island SC Real Estate
|
| |
Migration & Market Trends and Reasons for Buying 
