MO RE
Just to let you know, I have some background in Real Estate, Real Estate Lending and Real Estate Development!
So MO RE stands for My Opinion Real Estate.
Right now one of the best places to buy Real Estate to live in your Retirment is, right where I live today. Coastal Georgia!
Made up of Camden, Glynn, and McIntosh Counties. All Costal with lots of waterway, marches, and Pine Trees.
Why I make this statement, I did my due diligence looking for investment property about 7 years ago. We had a rental that each month, half the income was going out for repairs.
Started looking in the local area at the time, which was Santa Cruz and Monterey Counties in California. Had to start looking all over the state, because with something new or newer, we could not get the same rate of return as with were getting in Rio Del Mar (Aptos), for a 1800 square foot 3/2 with a garage.
Spent two years doing my research, and found several places that would give us the same amount of return as Aptos. However when we came here to Brunswick to visit, I had my research of Jacksonville, FL and Savannah, GA ready.
Spent one long day in each, saw about 12 different subdivisions/areas in each. Much of the information from the brochures, home magazines, and web sites were accurate. However there were several communities that had less than desirable neighborhood surrounding the developments.
At the time, what we found, was if the renter could afford to pay the rent and had a down payment, they could buy. This was the range $220k to $260k. The rent would have to be $1400 to $1600 a month to get close to the same return as in California.
The Property Taxes are higher here.
Especially in our upper range of $350 to $400k, there was not a market for long term renters.
So, what we did was take a look at the communities here in Brunswick. Had the same weather as Jacksonville, on the same Interstate, and the surrounding vegetation was the same.
Found several of the same builders we had seen in both Jacksonville and Savannah, were building in the Brunswick area. The same exact floor plans and same equipment and finish were offered for $40 to $60k less in Brunswick. And there was, and there is still a strong rental market, compared to other areas of the country.
Even with the property taxes being higher, we were able to get three and increase our rate of return.
The one caveat, it only works when you have renters. Thought you would like to know that.
I our case, when the economy went south on us, we were able to move here. What was costing a buck in Maui, would only cost us 55 to 58 cents here. Timing was right, as we had a vacancy and were able to move right in.
Sure I miss the views and the sound of the trades and birds, but I do not have anyone coming to take my home away. Could have been a possibility in Maui. The condo we were in now has 23 units for sale, and over half appear to be bank owned or short sales.
Also we did not lose that much when the prices started going down hill elsewhere in the country. Matter of fact, right now we appear to be about 8% above what we paid from them 5 years ago.
Not moving as fast as what we had in California or Maui, but right now on paper, we are not on a negative.
The good thing, given time, things do come back.
Mahalo,
Bro Kini