Are you thinking about buying or investing in Myrtle Beach real estate? Check out our insights into the market to make your decision.
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Investing in a property is a big decision that you should make wisely to get substantial profits. There are many facts you need to consider when you are investing in real estate. There are thousands of real estate properties unoccupied in Myrtle Beach ready for sale or rent, which makes it a perfect choice to invest your money in. If you have heard of Myrtle Beach, you probably think it is a budget-friendly version of Florida resorts.
Before investing in Myrtle Beach real estate, you need to do thorough research and review the statistics. Here, I have gathered some insights into Myrtle Beach real estate.
Real Estate Market in Myrtle Beach
So, are you wondering if Myrtle Beach will be one of the top real estate investment markets in 2021? To understand this, we need to go through the latest trends in this area’s real estate market.
At present, the median home price in Myrtle Beach is around $156,300. The Myrtle Beach house prices rose 6.5% last year. If we look ahead, this year, the home prices are expected to grow at least 3.8%. The standard price per square meter in Myrtle Beach is around $175, which is more than the standard cost of $137 for the “Myrtle Beach-Conway” subway. If you are wondering about the current median price in Myrtle Beach, it is between $189,900, and $144,600.
The insights into Myrtle Beach data show that 14.2% of deals were discounted in October 2019, which is ideal for buyers. This insight shows that sellers are prepared to negotiate costs because they find it increasingly difficult to sell at asking prices.
Starting rent of this area is around $1,100, which is cheaper than the subway named “Myrtle Beach-Conway”, where the price is $1,300.
The real estate marketers are estimating that the home price range will increase by 82% in this period. If the price forecast turns out correct, then the home price of Myrtle Beach will reach even higher levels in the third quarter of 2021.
There are various Carolina Forest homes that are the best option for you to purchase in Myrtle Beach as they are located in the fastest-growing housing market.
Rental Rates are Rising
The price of the rental properties in Myrtle Beach is rising, and even some average houses were sold at 25% higher than the standard price. Myrtle Beach house inventory is limited to start with and always has a high price. There is a limited supply that keeps the competition intense with numerous offers for a property.
However, the rising price of a rental property can be due to some other factors. People are getting more interested in looking for the best condos to purchase in Myrtle Beach. This new trend has started in the pandemic as people are willing to move from crowded cities to places near nature.
Myrtle Beach is also a great vacation spot where millions of tourists come to relax and enjoy the beauty of nature every year. Some people can afford to invest in a beach house while others prefer to spend their time in rentals. When it comes to Myrtle Beach, tourists or vacationers can choose rental properties over hotels as they are the better option. If you purchase a rental property, it will be a fantastic opportunity for you to earn some rental income.
The relocation trend has boosted the property price and demand. However, many investors are trying to sell their existing properties to purchase new ones to sell them at even higher prices.
Decreased Interest Rate on Mortgage Loans
The dropping interest rate is the reason why the demand for properties is increasing in Myrtle Beach. If the price of the place is high, it will have low-interest rates and so on.
At the end of 2020, interest rates in Myrtle Beach dropped down to 3%. Some years ago, these interest rates were 7% for the same properties. So now, getting a loan is almost like getting free money.
Remote work and the Market of Vacation Property
The coronavirus pandemic is slowly weakening now in various countries, while in others, it seems that it can last longer or maybe forever. That is why people are choosing nature and quieter places to enjoy working remotely in peace. Thus, people are looking for vacation homes or thinking about purchasing rental properties.
Myrtle Beach has a crowded summer and a quieter fall and spring with less traffic and tourists. However, according to the current year’s statistics, people are visiting Myrtle Beach more than in the past years. According to researchers, beach properties will attract more buyers’ interest if schools, colleges, and offices continue to run online in the coming years.
Low Maintenance Cost
The significant advantage of Myrtle Beach is that the cost is relatively lower than the other nearby states. You do not have to worry about the essential services and amenities as they are available here. The cost of living in Myrtle Beach is 30% lower than the average cost of living in the country. That means the price of Myrtle beach waterfront apartments or rental properties is affordable compared to other options.
If you are worried about healthcare and hospitalization costs in this area, then you will be amazed to see the hospital cost is lower than the fees you pay in Las Vegas and Miami.
Oceanview Vs. Oceanfront Property
Oceanview and oceanfront might sound similar, but they are different when we talk about real estate. A plot facing the ocean means that it is an oceanfront property, but not every oceanfront property can provide its guests or buyers with views of the ocean. The ocean view property provides a great ocean view.
Oceanview properties are more attractive to tourists when it comes to vacation rentals. They will try their best to stay near the ocean, so when you are investing in a vacation rental in Myrtle Beach, go for the ocean view property deal to attract many tourists.
Tax Issues and HOA Fees
The tax rate in Myrtle Beach will mostly depend on the location of your rental property. If you purchase a property near the coastline of Myrtle Beach, your tax will be higher than the standard residence area. If you want to understand the in-depth tax rate of the property you are planning to buy, consult a realtor.
Homeowners Association (HOA) is an organization of homeowners in Myrtle Beach. If you purchase a property in Myrtle Beach, you need to pay some fees to HOA for insurance, maintenance, and other bills like electricity, water supply, etc. HOA fees can vary in some areas, and you may have to spend at least $200 per month.
Wonderful Weather Conditions
Myrtle Beach is visited by at least 14 million visitors every year. In the summer, the beach is full of visitors, and you can easily earn a good amount of money with your rental properties. Summer is a great chance to increase your earnings. After summer, you will get calm fall and winter to enjoy the peacefulness of the beach. Residents of the area also enjoy cheaper prices for all the utilities and services.
Mind the Hurricanes and Other Natural Disasters
Hurricanes and natural disasters are a big concern when it comes to living or investing in beach or coastal areas. However, it is quite rare in Myrtle Beach to be directly hit by any natural disaster, but it will not hurt if you take necessary precautions. Hurricanes do happen in Myrtle Beach landfalls, but the outline of the coastline is fortunate enough to avoid any kinds of natural disasters.
Florida, Louisiana, and North Carolina are more at risk of a natural disaster compared to Myrtle Beach. In recent times, Myrtle Beach has gone through two-semi hurricanes, which resulted in heavy wind, rainfall, and floods in the area.
Conclusion
The real estate market in Myrtle Beach gives you affordable options, a significant amount of return, a stable housing market, and a great option to get income from tourism. It is ideal for homeowners and can develop further in the long run. Therefore, finding the right spot in Myrtle Beach is ideal for your success in rental investments. If you invest wisely in Myrtle Beach rental properties, you can count on a steady income stream in the future from your investment.