Why invest in Hilton Head Island, South Carolina real estate now? – Part One
We all know that we should buy low and sell high. Why don’t we?
Prices for ocean front and near ocean properties on Hilton Head Island, SC have not been this inexpensive since 2004.
So why is there a slowdown in people buying investment property on Hilton Head Island?
It's in our nature. When prices are increasing and your friends and neighbors are buying real estate you buy. We never think that prices will ever stop going higher. But they do. On the other hand when prices are going down and your friends and neighbors are not buying real estate we do not. We never think that prices will ever stop going down. But they do.
The way to make money in real estate on Hilton Head Island is to buck the trends. Buy when no one else is buying and sell when everyone else is buying. Remember no one rings a bell when we hit bottom.
In this market there are three classes of sellers on Hilton Head Island, SC.
1. Individuals, who purchased property a number of years ago, have equity in the property and have it priced aggressively. These properties can be great opportunities.
2. Individuals, who purchased in 2005 and 2006 and owe more on their property than it is worth, some are in foreclosure, some are trying to short sell avoiding foreclosure and others are willing to take a personal loss to sell their properties. These properties can be great opportunities.
3. Individuals, who purchased at any point of time, have their properties priced equally to all others who are in the same quality, class and size. These properties do not sell and are not great opportunities.
We must ignore number three. That class of seller is unrealistic. There are far too many other opportunities in the Hilton Head market.
OK, maybe across the entire United States real estate prices may continue to contract, but Hilton Head Island, SC is unique. There are only so many properties on Hilton Head Island and if you wish to be on or near the ocean that number is substantially less. If you find a property that you like and it is aggressively priced don’t hesitate. Don’t listen to the talking heads on the TV or read of national averages. If you have the money, buy.
It’s about that specific property. Once sold you will not be able to buy that property and forever you will compare it to all others. Buck the crowd.
Part two of ‘Why invest in Hilton Head Island, SC real estate now?’ will delve into the financial aspects of profit and loss on investment property on Hilton Head Island, South Carolina.
Frank Moriarty
Broker
American Real Estate Group
Hilton Head Island, SC
843.384.7280
Frank@FrankMoriarty.com
http://www.FrankMoriarty.com
