Condo Sales Tips: Paying cash for an investment property
While it is true that mortgage interest rates are very low, there are many advantages to purchasing investment properties in Myrtle Beach for cash. Recent statistics released by RealtyTrac, Inc. for first quarter real estate sales show that 49% of all property sales in the first quarter of 2011 nationwide were cash sales, confirming the growing trend.
So what makes purchasing a beachside condo for cash so appealing? There are several reasons you should consider this option:
- Myrtle Beach condominium prices are the lowest they have ever been, making it much easier to purchase an investment condo for cash.
- While condo prices may be low, the demand for vacation rentals in the Myrtle Beach area is at an all time high.
- Using cash to make a real estate purchase provides you leverage during negotiations.
- When you are not burdened with a mortgage all the income you collect is profit, providing you with an almost instant return on your investment.
- Myrtle Beach investments are perhaps one of the closest things to a guarantee for successful real estate investing. The popularity of the area as a tourist destination creates a need for vacation rentals, while reduced condominium prices make this area a real estate investors dream.
Myrtle Beach has beautiful weather throughout the year, creating the perfect vacation spot. A beautiful beach, warm ocean breezes and countless tourist attractions in the area make it attractive to everyone. Golfers love Myrtle Beach because of the many fabulous courses in the area and the near perfect weather year round.
Vacation rentals have become quite popular in recent years as an alternative to high-end hotels. Families wishing to remain on a budget, but still go on vacation, have found that a condo rental allows them to enjoy beach side accommodations at affordable rates. The many amenities found in these condo rentals, such as full kitchens and washers and dryers, help reduce costs and allow many people to extend their vacation time.
Condo rentals vary in price depending on the season and the size of the condominium. During the peak of Summer some rentals bring in more than during the off-season. Furthermore, 3 bedroom condos rake in more cash than a 1 bedroom. (Of course, these cost a bit more to purchase as well.)
A group of people that investors may not have considered is the “snow bird.” Many people from northern states like to travel south for the winter rentals. Generally retiree’s, these guests will rent condo space between October and March while they wait out the cold winter. This is terrific news for the real estate investor because these months are usually slower tourisim months.
Real estate investing using cash has one final benefit that you may not have considered. When the housing market bounces back, and it will, you will own your property outright, allowing you to cash in on the full resale value of the condo without having to pay off a mortgage.