With home prices at a great place in the Grand Strand area, now may be the best time to snag a vacation house. With all that has happened in the real estate market, some might be worried about investing money into real estate and looking at homes for sale on Myrtle Beach. When looking to purchase a Myrtle Beach home for sale, ask yourself the following questions.
1. Why do I want to buy a home for sale on Myrtle Beach. Your answer should not be just because the pricing is great. If you are looking to by a home for sale on Myrtle Beach, it should be not only an investment, but also to use as a vacation getaway spot. If you will be using the property as a vacation home, make sure your expectations are realistic – will you be able to get away on a frequent basis? If you want to retire in the area, have you visited the Grand Strand during the off season?
2. What if the prices dip? Most people will agree that it’s safe to look for homes for sale on Myrtle Beach since the drastic plunge in the real estate market is over. It’s never a 100%, and home prices can always dip at an given time – so what looks like a huge bargain today might look differently a year from today, but you can always look at the housing forecast prior to looking at homes for sale on Myrtle Beach. Prior to purchasing, plan to hold onto the property for 5 to 7 years – that will allow maximum return on investment.
3. Do you need financing or will you be paying cash? In today’s market about 30% of people looking to purchase a second home when viewing the homes for sale on Myrtle Beach will have an all cash deal. Paying in cash will increase the likelihood of a seller accepting your offer – even if your offer is less than another offer that is contingent on financing. If you will be getting a mortgage, plan on coming to the table with 20% when you purchase one of the homes for sale on Myrtle Beach. Also know that most bankers want a primary and second home using no more than 33 percent of your monthly gross income. Condo financing can get a little tricky – you might want to speak with a mortgage broker prior to beginning your search of homes for sale on Myrtle Beach.
4. What are the true costs of the homes for sale on Myrtle Beach? Things to consider that may run you quite a bit more than your primary home: Insurance (especially at the beach you will need 3 policies – wind, homeowners and flood) Property taxes – luckily at the beach the taxes are quite low compared to some of our northern neighbors! Don’t forget about the HOA dues in a condo building – that can be a few hundred dollars each month. Be sure to ask your Myrtle Beach real estate agent for an estimate of some of these expenses.
5. Is the second home affordable with no rental income? Some buyers tend to be optimistic and rely on the rental income when looking at homes for sale on Myrtle Beach. Consult with a vacation rental management company and play it safe – aim to cover your expenses and any extra income will be icing on the cake.