Cultural heritage, location near beaches, excellent weather, and southern hospitality, many peoples are deciding to invest in South Carolina real estate.
We have all heard of late-night informational TV shows, information about getting rich in real estate. Many experts promise lazy “get rich quick” money and strategies. However, the fact is that it takes work, time, and money to develop a portfolio of rental properties in Charleston, South Carolina.
From the beginning of your long-term plan to extensive research, strategy, and management, buying a leased property in Charleston, SC, and turning it into a considerable investment requires experience. Therefore, when starting the investment road, here are six steps to learn the ropes and seize the market.
South Carolina is a popular market for real estate investors. Located on the Atlantic coast, this state has a range of investment opportunities, from luxury properties along the coast to affordable single-family homes and apartments in smaller communities.
This is a diverse state with a rich history and culture. Founded in 1729 and separated from its sister North Carolina, South Carolina is now an ideal place for retirees and first-time homebuyers who want to live in an affordable place. The state has nearly 5 million people, and the median annual household income is close to $50,000.
The University of South Carolina, Clemson University, and Trident Institute of Technology are among the state’s largest universities. South Carolina is indeed a good location for real estate developers seeking to take advantage of the state’s strong economic development and growth.
Places to Consider For Real-Estate Investment
If you are thinking of investing in South Carolina real estate, you can consider the following places.
In the past year, housing prices have increased by 8.2%, and the medium-sized community of Greenville offers you some attractive real estate investment opportunities. With an average house value of $186,900, the neighborhood is now one of the most luxurious housing locations in the state.
Estimates show that housing prices in the city will continue to rise, and experts predict that it will rise by another 4% next year. The current median rent is US$1,200, the average list price is US$274,900, and the median selling price is US$201,200.
Hilton Head Island
Hilton Head Island has long been known as the most lucrative real estate market in South Carolina. It is a well-known coastal neighborhood for retirees and seasonal tourists.
This famous vacation spot has some of the highest rental yield assets for property investors, particularly during summer and spring. According to specific real estate sources, developers easily generate a 9 to 10% ROI (return on investment) from their leased assets.
The median house price on Hilton Head is $437,200, and the median price tag is $457,500. The average home price in the area is $363,400. The annual rent is $2,290 a month. Home values are expected to climb 3.6 percent by next year, according to real estate analysts.
Columbia is the state’s city center and host to the University of South Carolina. Although analysts predicted a troublesome year for Columbia’s housing market, the city began to perform strongly in 2019, with new listings increasing by 10.6%. Inventories fell 3.4% in February, indicating that buyers’ demand remained stable.
Currently, the median price of a house in Columbia is $134,000, which is expected to increase by 3.7% year-on-year. The median list price is $182,900, and the median selling price is $137,700. The median monthly rent is $1,200.
Charleston and its neighboring areas have diverse opportunities for real estate buyers, ranging from luxury waterfront homes to bustling downtown packed with condominiums and apartments. The average home price in the area is $320,800, while the state average house price is $165,800.
The center of the Great Beach, Myrtle Beach, may be called a top tourist and spring vacation destination. However, it also provides residents with a great culture and environment. Myrtle Beach has endless beaches, shopping, delicious food, and sizzling nightlife. The excellent weather and convenient facilities of Myrtle Beach have attracted many millennials and families.
Not a surprising fact that the population and employment here are growing rapidly. With an affordable rent of US$1,032, landlords will have many potential customers with an average of 35 per property.
They can easily be in 12 days or less to pay rent within time. They say that life in Myrtle Beach is the best, and so is the real estate investment. Here are some of the homes for sale in pine lakes, Myrtle Beach, SC.
Before investing in any real estate, consider the following factors.
Do Proper Research
Buying any property requires research, so please read all investor books and blogs. Learn the penetration method with other investors. Furthermore, sometimes, it is the same with being careful to find an expert in your local market.
Taking Charleston as an example, a real estate investor can limit the purchase of properties around the community he/she is familiar with or find a professional broker who knows the area well and can provide advice.
A fact that should not be overlooked if you are considering investing in beachfront is the weather. Because sometimes the weather gets severe and you have to take proper actions.
Plan your Exit Strategy
How would you uninstall this attribute? Does the long-term rent of income count into your budget? If so, please calculate the maintenance cost and add it to the annual budget. Suppose maintenance delays bring you serious troubles.
In that case, if you are unemployed, then you can only rely on rent to make a living instead of reinvesting. Do you want to convert it for personal use in the future or sell it to make a considerable profit and buy a more significant outcome?
Or you can wait to get the stimulus payment by the end of March 2021.
Charleston and Myrtle Beach have drawn many big foreign companies, including Boeing and Volvo, thanks to its welcoming market climate. Columbia is the headquarters of Scana Corp., which has significantly aided the local economy’s growth.
Despite the historically low housing supply, single-family homes are still reasonably priced, because of low-interest rates.
Moncks Corner, Pine Lake, Wylie Lake, Hanahan, Tega Cay, and Sumter are among the other cities with an increasing working-age demographic, middle-income, and property prices. Investors interested to invest in these areas should be able to get tenants quickly.
Rent is paid by 46 percent of South Carolinians, but there are plenty of possibilities in the real estate market.