The FOMC jawboning has worked. The Super Hot Myrtle Beach Real Estate Market is now just HOT, HOT, HOT. Much of the craziness is gone. Sellers who were waiting for the top have started listing properties for sale. One can now find a number of properties that have been multiple listed for several weeks.
The new environment is a healthy one. Property values are still going up but at a more reasonable pace. Investors who purchased rental properties a year ago now appreciate that cash flow is negative in the early years of beach resort property ownership. One must be prepared to carry properties until rents increase enough to cover costs.
Demand is still growing. Many folks are buying second homes away from the beach because costs on the beach are high--big mistake. When buying at the beach, smart investors step up to the plate. Ocean front properties are always in demand. Second row or golf course communities can not match the growth in rents or values of ocean front properties.
Many a seller has been scared into selling before the bubble pops. Those who buy this year are likely to see 25% increase in property value by next year. The leverage means the return on investment after expenses will come close to 100%. The current "soft patch" is just like the ups and downs of the stock market. The market does not go up in a straight line.
The slowing growth in the economy is ready to give real estate another big boost. Mortgage rates have lowered the costs of second homes by substantial amounts. Those who are willing to speculate on multiple properties can refinance purchases made only a year or two ago to pull out substantial equity.
Some of those who are not ready to buy 100% of a second home, have purchased 10% shares or other partial ownership partnerships. My family enjoys owning 10% of several ocean front properties. This allows us to enjoy the use of several condos when our families get together.
Time to go take a nap under a beach umbrella. There is nothing so rare as a day in June; then if ever comes perfect days!
BUY THE BIG BULL MARKET! STOCKS ARE CHEAP--RELATIVE TO BONDS AND REAL ESTATE!
The new environment is a healthy one. Property values are still going up but at a more reasonable pace. Investors who purchased rental properties a year ago now appreciate that cash flow is negative in the early years of beach resort property ownership. One must be prepared to carry properties until rents increase enough to cover costs.
Demand is still growing. Many folks are buying second homes away from the beach because costs on the beach are high--big mistake. When buying at the beach, smart investors step up to the plate. Ocean front properties are always in demand. Second row or golf course communities can not match the growth in rents or values of ocean front properties.
Many a seller has been scared into selling before the bubble pops. Those who buy this year are likely to see 25% increase in property value by next year. The leverage means the return on investment after expenses will come close to 100%. The current "soft patch" is just like the ups and downs of the stock market. The market does not go up in a straight line.
The slowing growth in the economy is ready to give real estate another big boost. Mortgage rates have lowered the costs of second homes by substantial amounts. Those who are willing to speculate on multiple properties can refinance purchases made only a year or two ago to pull out substantial equity.
Some of those who are not ready to buy 100% of a second home, have purchased 10% shares or other partial ownership partnerships. My family enjoys owning 10% of several ocean front properties. This allows us to enjoy the use of several condos when our families get together.Time to go take a nap under a beach umbrella. There is nothing so rare as a day in June; then if ever comes perfect days!
BUY THE BIG BULL MARKET! STOCKS ARE CHEAP--RELATIVE TO BONDS AND REAL ESTATE!
Posts
0 comments:
Post a Comment