Really, Are There Good Deals On Oceanfront Condos In Myrtle Beach?
Pawleys Island Real Estate, Tara Melech, Keller Williams Realty, (843) 907-8787
As I take a look at this question, I am reminded of what the prices were to own an "oceanfront" condo in Myrtle Beach back in 2006. The market was booming just before the bubble burst and investors couldn't wait to get a piece of the Myrtle Beach Real Estate for sale back then.
There truly are great deals on the oceanfront condos in Myrtle Beach right now. Yesterday, my broker and a few of the other realtors from my office got together to discuss some of these issues affecting the outcome of current sales and future forecasting for the oceanfront property in Myrtle Beach. We visited four of the current listings for sale in some of the great resorts on the coastline.
We started with "The Breakers". We visited one condo in particular that is currently for sale at $229,000. When the market was at its peak, this same unit went for over $600K! It is almost unbelievable what some of these units will now sell for. When looking at these types of condos, lots of things need to be taken into consideration. Most importantly, the numbers need to work. This does not necessarily mean that you should expect a profit, but to at least cover what it will cost in maintenance & POA fees. To break this down a little further, take a look at what the GRI (Gross Rental Income) for the particular unit will bring in. The Realtor of your choice should be able to help and be familiar with these figures. If you are not interested in these numbers and want the unit for private use, then use these numbers for future reference as you may one day want to sell the oceanfront property. Take a look at the current market activity. Is the market activity increasing, decreasing, stable? As discussed in this oceanfront training, the trend is that oceanfront purchases are increasing. Although it is increasing, the prices are still falling/or close to the "bottom". What this means for a buyer is that there can only be one person who pays the lowest price for a Myrtle Beach Oceanfront property, and once this happens, the market can only go up. So, instead of waiting to be that person who pays the lowest price possible, wouldn't you rather be in the group of people who paid lower than average? On the other hand, if you are trying to sell a property, now is the time to sell because of property activity picking up. Wouldn't you rather be lowest priced property sold, or within that group than not sold at all? Once again, the market can only go up from the lowest point. Why wait for that moment when there is plenty of opportunity to sell your property now?
Looking at the trends of oceanfront property, it is agreed upon that the end of the bottom of this market is near or here. If you look at the statistics for Myrtle Beach oceanfront condos including efficienies, one bedrooms and two bedrooms, the pattern of low to high range is apparent. For instance in 2003, the average price of a one bedroom condo oceanfront, was $105,000. In 2006 and 2007 the average price was about $221,000, which was the high point. The average price in 2009 was $114,000. When comparing 2008 to 2009, there is a slight increase in prices which may be a good indication of the bottom for Myrtle Beach One Bedroom Oceanfront condos. Another item to think about as well - when you are looking for Oceanfront Condos, specify to your realtor wether or not you would be willing to consider an efficiency - the difference between the two can be very important, especially if you are trying to finance an oceanfront property through means of a loan.
With all the changes going on the lender and loan programs, one thing has remained the same. It is difficult to get a loan on Myrtle Beach oceanfront property. Cash truly is king in this type of property. There are several reasons for this. Here are some things to remember if you are going to apply for a mortgage on Myrtle Beach Ocanfront Condos:
1) If the building is turned over to the Property Owners Association, there is a minimum of 25% down required when purchasing Oceanfront financing. There are only a handful of thess buildings in the Myrtle Beach Oceanfront properties, so be very select. If the building is not turned over to the Property Owners Association, there is a minimum of %45 down required.
2) With the short sales and foreclosures going on as part of this market, it is vital to find out before the closing or financing falls through the delinquency, if any of the Property Owners Association. If 15% of the homeowners are delinquent on their dues/fees, then you can not obtain financing.
3) Efficiencies do not normally qualify for financing based on their actual size. A one bedroom or efficiency must be 750 square feet or more.
The future forecast for Myrtle Beach Oceanfront Properties may look better today than it did yesterday, especially when compared with other areas similar to Myrtle Beach. Some of these reasons being that: we don't have an inventory or oversupply of new construction, like Florida. Many people may look at this as a positive. Nevada is in the same situation. property taxes are much lower here when compared to other areas on the east coast.
Any of you looking to find information on Myrtle Beach Real Estate Oceanfront, I hope this helps. If you have any comments or questions, please feel free to contact me at your convenience.