I makes no sense to classify a Beach House as an investment when it only does 5% gross return on income. Once you deduct the operating expenses you are at about 3% or less!!!
I would rather buy a CD or something that will put$$$ in my pocket for an investment. Real investors laugh at listings that are $2,000,000.00 and they are grossing $98,000----
Everyone one is tired of looking at them collecting dust on MLS-!
If I want an investment and by that I mean something that will pay on principal then I will buy a bond or CD or something that will actually put the $$ in my pocket and guess what?? I will never have to paint it or cut grass or fix he water heater.
NOW- if I want to buy a beach house and get a little help with rent then I can understand the 5% Gross rent. Still the savvy buyer wants closer to 10% - we have a Mexican stand off here on the OBX concerning price - be not afraid though because every week or so a seller decides to get real and listen to the professionals .The results?? a contract and quickly!- of course NRA stats suggest it has taken the average seller decide to believe in the suggested price 1.5 years later than it was suggested - what happens then?In most case they have thrown away $$$$$ and for what?
The sooner they decide to list at a price that will cause the home to sell the sooner they will get the place sold and move on.
The housing boom bar is CLOSED, last call was in 2005!! smokem if you've gotem, you don't have to go home but .... you know the rest.
Let me know what you think--
Blaze on the Outer Banks signing off