Best Investment Properties for Hilton Head Buyers
With mortgage rates so low, many investors are choosing to invest in real estate, as it is more tangible and understandable than stocks. According to Bankrate’s annual investment research, 27% of Americans with money to invest would choose to invest in real estate over any other investment. Because Hilton Head real estate is becoming popular again among investors, here are tips for investing in the local market.
1. Buy Remodel or Turn Key Property?
Most investors, especially those newer to the Hilton Head area, come into the market looking for distressed properties. The problem is that these properties are not always the best values in the market. Distressed properties may offer a lower price, but they do not always offer the best rental potential. The key is to find the best location with the best potential for rental income and work backwards from there. Check out Zillows’ “A Tale of Two Townhomes”.
2. Crunch the numbers Before You Buy
It’s common knowledge that any investment comes with an involved risk. With TV shows like “Flipping Boston” or “Flip This House” on A&E, many people want to purchase a foreclosure fixer upper, with a low cost, flip it, and sell it later for a large profit. While this sounds like a lucrative investment, it takes practice, due diligence and loads of local knowledge. Even for those looking to purchase short or long term rental properties, doing your homework (viewing reports, analyzing, crunching numbers, etc) is required to make the very best decisions.
3. Time is Money
When purchasing rental properties in the Hilton Head area, you should consider the amount of time you have to put into managing the property. Vacation Rental properties in the Hilton Head area constantly have tenants coming and going. If you do not have the time to put into a vacation rental, you may want to consider a property manager to help you. Also consider long term rentals in a residential neighborhood on or off the Island because they are in high demand. This investment strategy works rather well if you are one day wanting to move to the Island permanently, but want to take advantage of todays prices and interest rates.
Let Us Help You Achieve Your Real Estate Goals
Real estate can be risky, especially for individuals new to the Hilton Head real estate market. As real estate professionals, we can be your ground crew, help with the research and provide local knowledge about the best rental properties and strategies. Contact us today to learn more about the services we provide. Thank you.
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