Market Conditions in 32082>Question Details

Chana, Home Buyer in 32082

Is rental property in Ponte Vedra a good investment?

Asked by Chana, 32082 Sun May 15, 2011

I am interested in purchasing forclosures for rental income. Is this currently lucrative?

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Answers

2
In the words of Warren Buffett "When everyone else is saving spend and when everyone else is spending save." If you feel that an investment property is a right move for your financially then investment property could help you diversify.

When has the buying enviorment every been better? I have added a link that show a graph of rental property rate in Ponte Vedra. It will give you a snapshot over the last three years!

Jacksonville Real Estate Insider
Phillip Thompson
904-485-0408
Phillip.thompson@prunet.com
2 votes Thank Flag Link Fri May 27, 2011
prices of rental properties have dropped alot more than rents (in fact rents have generally stabilized and even risen of late), which is the perfect equation for income properties. I am a real estate broker with a focus on real estate as an investment and own 3 investment properties for my own account in ponte vedra.

Cap rates of 6 - 8% are obtainable on solid income properties. Because income properties carry depreciation expense the after-tax returns are even more interesting compared to after-tax returns on alternative investments.

When I refer to cap rates I am not factoring in future price appreciation, just the net annual income as a % of the basis of the property (purchase price + closing costs + improvements). This is a solid return in the current investment marketplace and eventually when prices improve there is the additional capital appreciation that can add handsomely to the overall return.
0 votes Thank Flag Link Wed May 25, 2011
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