Why buy a Hilton Head Vacation Villa and Rent it this year
If you have ever thought of owning a rental property, consider the advantages of purchasing a Hilton Head Vacation Villa. The villas on the Island vary in location, size and price with views including ocean, golf, pools and the Low Country. Owning a vacation villa has never been so good! Factors include low pricing, great locations, better rental opportunities and some very compelling reasons to jump into the market. Here’s why!
Hilton Head Island is a “Limited Commodity”
Hilton Head Island is 97% developed. All of the oceanfront has been developed and the communities that offer rental property are all developed. What’s this mean? There is a limited and finite availability of units that will ever exist on Hilton Head Island. We will try to save you a seat, but real estate on the Island is not rocket science. When it’s gone its gone.
Hilton Head Island’s Seasons
Hilton Head Island is a year round destination. It used to be summer weeks of June, July and August were the only months in demand for families. Now, as Hilton Head’s subtropical temperatures have been discovered by Canadians, Floridians and everything in between the Island is buzzing year round. Vacation villa owners now have the opportunity to rent year round!
Hilton Head Island’s Location
Hilton Head Island is a driving market. Meaning most of the visitors can jump in their car and be on the Island in a single day. Sure some of these visitors put in 14 hours, but it is well worth the effort to wake up on the beach. Hilton Head Island has seen increases in visitors with the low gasoline prices, the high gasoline prices, international concerns and struggling economies because of this reason alone.
Hilton Head Island’s Prices
There is no crystal ball, but we have seen history repeat itself. Just look at this printout (Villa Historic Values) of villa prices for this particular villa in the last 20 years. Vacation villa prices right now are hovering at 30 – 50% off their high. Buying a vacation villa for 50% less than what it had sold for certainly should boost confidence in timing. Please do not be that guy that said “I should have” or “I could have”. We have heard it before!
Hilton Head Island Interest Rates
Low interest rates improve cash flow. In fact, for every 1% increase in the mortgage interest rate, lowers cash flow by 10%. Interest rates are hovering around the 4% mark and there is some speculation that rates will rise this year. They are giving money away! In fact, as an example a $500,000 villa financed 30 years fixed at 3.75% with 20% down will cost an owner $1,852 per month. Consider this when looking at the proforma adding rental into the equation!
Hilton Head Island Rental Commissions
When I moved here in the early 80’s rental commissions were hovering at a strong 45%. However, with competition comes better service and better rate. Today on Hilton Head Island rental commissions average in the 20% +/- range. Factor in the higher rental rates per week, year round rental opportunities and lower commissions and BOOM! Please feel free to contact our awesome rental manager at HiltonHeadPropertiesRandR.com for a proforma on the property you are considering(Sample Rental Proforma).
Hilton Head Island – Natural Beauty
The natural beauty of Hilton Head Island goes unmatched. Located on the southern most tip of South Carolina, Hilton Head Island is a subtropical Island with 12 miles of pristine beaches and canopied by moss covered oaks. Relatively a “young” Island because development did not start until the 1950’s, Hilton Head Island embraced the natural beauty and planned the development. Trees, lighting, signage and architecturally, the Island grew up to become a beautiful place to visit, own a vacation villa or make a more permanent move.
Hilton Head Vacation Villas – Search By Price Range
Vacationers will help off-set the ownership expenses in owning a Hilton Head Vacation Villa. Search by price range below or check out our exclusive offerings!
We would love to hear from you. Please send us an email and let us know what type of villa you are looking for and we will send some fabulous ideas! Thank you.
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