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That's far, far from a major investment in this area.
I'd rank a major investment by the amount of the investor's resources that it involves. An investment of $250k-$500k would be a major investment for the majority of folks out there.
There are good investments to be had in that price range in the Charleston area. I bought a West Ashley duplex last year for $140k and put $60k into it (and a good bit of my time). It's been a great investment.
$250 - 500k is a huge amount of investment capital. I guess everyone here is crazy rich or thinking leveraged money (big difference).
I think the point being that it isn't that big a number, given the market.
Everything is perspective. Years ago, when Summerville was the country, I know folks who bought farmland out past there. Land was dirt cheap, but you had to be willing to sit on it for a really long time. Some of those folks have/are going to make a killing.
Like buying land on Hilton Head in the 60's. Foresight is a great thing.
There are good investments to be had in that price range in the Charleston area. I bought a West Ashley duplex last year for $140k and put $60k into it (and a good bit of my time). It's been a great investment.
You're also a realtor. You're an expert in the market and have a built in 6% discount on the backend when you want to dispose of the asset (and hopefully realize gains).
I think the point being that it isn't that big a number, given the market.
Everything is perspective. Years ago, when Summerville was the country, I know folks who bought farmland out past there. Land was dirt cheap, but you had to be willing to sit on it for a really long time. Some of those folks have/are going to make a killing.
Like buying land on Hilton Head in the 60's. Foresight is a great thing.
That might be the intended point but it isn't what was said, so I would assume some misunderstanding. That's why I tried to clarify. Those amounts not only would represent a big investment for most people, but they would also be an adequate amount of capitol to invest with in Charleston. You would just be more limited in your investment choices.
Quote:
Originally Posted by Rocky21
You're also a realtor. You're an expert in the market and have a built in 6% discount on the backend when you want to dispose of the asset (and hopefully realize gains).
The fact that I'm a Realtor (and contractor) puts me in a better position to capitalize in an investment like that but it would still have been a good investment for a lot of investors. I'm not saying for ALL investors... you have to have the stomach for it... but for many it would.
Btw, if I were to list on the MLS, I'd still be most likely paying a buyer's agent commission so I'd only be saving half the typical commission. I get your point though. In fact, it's very cash flow positive and West Ashley's future is bright, so I'm not planning on selling.
That might be the intended point but it isn't what was said, so I would assume some misunderstanding. That's why I tried to clarify. Those amounts not only would represent a big investment for most people, but they would also be an adequate amount of capitol to invest with in Charleston. You would just be more limited in your investment choices.
Fair enough. There are many ways to invest in RE. The initial post is vague, so it leads us to our own interpretations. I like the idea of long term land investment in the farther out areas. Think Ridgeville. If I had $250-500K that I was willing to sit on for a while, that's where I'd go. But it may be 10 years +.
From my perspective Charleston, and immediate environs, are fairly tapped out and the number of folks looking for properties demands that you know exactly what your getting yourself into. Not my thing, so I stay the heck away.
Some like the buy and rent avenue. I've done that with condos in resort locations (with a management company), but don't have the wherewithal to do the monthly grind of a neighborhood duplex. I have friends who own a large number of properties in a college town, but the headaches they have aren't worth it.
Fair enough. There are many ways to invest in RE. The initial post is vague, so it leads us to our own interpretations. I like the idea of long term land investment in the farther out areas. Think Ridgeville. If I had $250-500K that I was willing to sit on for a while, that's where I'd go. But it may be 10 years +.
From my perspective Charleston, and immediate environs, are fairly tapped out and the number of folks looking for properties demands that you know exactly what your getting yourself into. Not my thing, so I stay the heck away.
Some like the buy and rent avenue. I've done that with condos in resort locations (with a management company), but don't have the wherewithal to do the monthly grind of a neighborhood duplex. I have friends who own a large number of properties in a college town, but the headaches they have aren't worth it.
Ha ha, you have more time than me! 10 years out is too long for my personal timeline.
Yes, the easy investments are mostly gone but there's still some that come up from time to time especially for cash buyers. And yes again, the landlord role isn't for everyone. Having been self-employed almost all of my life, I like the retirement income it provides. I've found that with practice, I've gotten much better at choosing tenants and I take good care of them so they tend to stay a long time. College rentals are a whole different animal.
I'm curious as to how people here feel toward the long term value of real estate in this city if you were to invest today.
I seriously don't we'll see 2009-2014 happen again, in fact I see a couple things that I think could be an issue for those exposed to real estate.
1. Income stagnation has typically been an indicator of falling home prices. While Charleston has done relatively ok in income growth across industries, it remains a national issue.
2. Much of Charleston's new single family housing stock is located in suburban subdivisions off busy roads and highways. As is widely covered, this style of home and neighborhood is quickly falling out of favor with younger home buyers as people have gravitated back to cities leaving owners with pricey homes that are difficult to unload when they decide to sell.
3. Flooding. We all know our infrastructure is in need of a very expensive upgrade, and it's possible much of that cost will be put on property owners in the form of property tax increases, which in addition to more expensive flood insurance, increas the price of a home without doing anything for it's actually value.
I'm curious as to how people here feel toward the long term value of real estate in this city if you were to invest today.
I seriously don't we'll see 2009-2014 happen again, in fact I see a couple things that I think could be an issue for those exposed to real estate.
1. Income stagnation has typically been an indicator of falling home prices. While Charleston has done relatively ok in income growth across industries, it remains a national issue.
2. Much of Charleston's new single family housing stock is located in suburban subdivisions off busy roads and highways. As is widely covered, this style of home and neighborhood is quickly falling out of favor with younger home buyers as people have gravitated back to cities leaving owners with pricey homes that are difficult to unload when they decide to sell.
3. Flooding. We all know our infrastructure is in need of a very expensive upgrade, and it's possible much of that cost will be put on property owners in the form of property tax increases, which in addition to more expensive flood insurance, increas the price of a home without doing anything for it's actually value.
I disagree with point #2. National trends don't always play out here in Charleston. Plus with a limited area to build in, rehab, gentrify in the urban core, the prices are already out of reach for most all younger home buyers. You may see some infill...some, but since the ocean, rivers, marshes, etc inhibit where you can build, expect to see more westbound sprawl.
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