Real Estate prices on Amelia Island in some areas have come down to be very attractive for investment again.
There is still GOLD in them thar hills neighbor!!!!! No, I don’t mean gold in the form of nuggets, I”m talking about Real Estate. I know, a few of you are thinking I’ve lost it for sure this time, but hang with me here for a minute. I’ve been watching the market very closely and I’ve got to tell you there are some super buys on this Island right now, not likely to be found again anytime soon. Because let’s face the reality here, land on a island is and will always be scarce.
I was checking the number of homes available under $100,000 and for the first time in many years they’re many to choose from. OK, so how does this turn into the “G” word? Well let’s think about this for a moment. Even in these bleak economic times, (oops, I did it again, talking bleak instead of positive, sorry I was just raised to tell the truth), people are still going to need a place to live. Now what do you think would rent faster, a $2000 monthly rental or a $800 – $900 a month rental? Of course reality is that there are more people looking for the lesser amount then the higher one.
Let’s say you bought one of these properties for seventy five thousand, your monthly payment would be somewhere around $400, at a rate of 5.5%. If you rented this property for $900 a month you would be in a positive cash flow right from the start. This is not the “G” we are looking for though. You now have a property, on Amelia Island, a bicycle ride to one of the most beautiful beaches on the east coast. You rent the property out for a couple of years, and hopefully these economic times will turn, (sorry, I guess I did it again) and all of a sudden you find your property has increased in value two or three times; not a bad return for a seventy five thousand investment. I know I know I’m preaching bubble again, but darn it like I said before, land on an island is scarce and there comes a time not too long from now that all those people that left the sunshine state in search for….what I don’t know? Jobs, probably. There comes a time they will come back to live the good life with sun, sand and sea. That’s just the way it is.
Another approach would be to purchase the property for cash and then add your profit to it and sell it under owner financing. You now become the bank and enjoy the interest. When you sell the property and you are holding the note, repairs, taxes and insurance have just flown out the window and you are left to enjoy the rewards.
Folks if you are looking for a safe place to invest, and I don’t think it’s on Wall Street, unless you’ve got more guts then I have, start considering real estate again. Yes, there is still gold to be made and the opportunity is right in front of us. Sometimes we are looking so hard for opportunities we fail to see what is within arms’ reach. Drop us a note if you would like a free list of the properties available within your investment range, you may be shocked.