Putting your money in real estate can pay huge dividends. A good home in the right neighborhood with a low mortgage rate doubles as both excellent dwelling and a very solid investment into your future.
In deciding what to do with your property, renting or leasing your space is a great option. My goal as a real estate agent in Gulf Shores and Fort Morgan is to be your source for aspects of your property, and understanding what to do with your property after you buy it is a huge part of a successful investment. Because of our close proximity to beautiful beaches, golf courses, historical sites and vibrant city life, the demand will always be there for tourism in and around Gulf Shores. Owning a vacation home and renting it to tourists is a great way to recoup the initial costs.
Think About the Future
One of the best reasons to invest in real estate is to see your investment potentially increase exponentially. Although nothing is 100% in this industry (weather, for instance), owning a property in the Gulf Shores/Fort Morgan area is certain to pay dividends.
Beach vacations will never go out of style. Demand is only set to increase in the future, and the supply is limited. According to 2014 survey from the National Association of Realtors, vacation home sales rose 57% last season while 85% of vacation buyers said the time is good to purchase real estate, citing a strong confidence. 10,000 baby boomers are retiring per day, and will be until 2030 (!!!). Many boomers are contemplating crossing off “retiring near the ocean” from their bucket lists. As the groundswell of potential buyers increases, the supply doesn’t.
As cost of buying will only go up, so will the demand for rentals. Affording a million dollar beach house isn’t in the cards for everyone, but a common trend for boomers is to take more vacations. It’s more feasible families to afford a couple weeks or a month in the Gulf than it is to outright purchase a home. This puts a premium on rental spaces, which means more money for you and your property.
Money earned from renting out your vacation home and is similar to a stock dividend, in that you get a cash return each month. By renting, you can cover the cost of your mortgage with some money leftover for future repairs. Anything earned after you pay your mortgage becomes pure profit. It’s important also to be in strong financial shape before purchasing a vacation home, as this real estate investment is one rooted in long-term gains.
Don’t think of a vacation home/rental property as a gamble. Buy into the idea of having someplace special to go with your family for a long time. Making memories is more important than making money, so don’t forget that you are buying into a piece of property on America’s beautiful coastline. In many ways this is invaluable.
Make sure to give me a call when you’re in the area. I love Gulf Shores and Fort Morgan and am quick to answer the phone for any questions you may have.