I plan to buy a condo in Little River, SC to rent out. When do you think I would get the best price according?

Asked by Patti Smith, Port Charlotte, FL Tue Nov 13, 2007

to their market - Now or Feb 2008? Patty

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Mirela Monte, , 29582
Sat Dec 29, 2007
What is your budget? That has a lot to do with everything.
You have to consider all the costs involved with owning a condo before you decide on what to buy. You need to consider the HOA fees, and whether or not they pay for the building insurance.
Here is the suggested math for you: add up the cost of the Interest, Principal, Insurance, Taxes (Little River is good for that, since they have no added tax, only Horry County Tax, unlike other areas around here), HOA fees, property management fees, then add it all together. Say you come up with an answer like $ 1,000 per month. Is the fair market rent in the area going to cover that? Condos at Baytree in Little River, for example have rental rates between $ 650 - $ 995. The rule of thumb is that if the rent covers 80% of your costs, you'll be fine, since you have to add depreciation to the mix at the end of the year, which will save you money on taxes you would pay on your income. I prefer something closer to 100% in 90% out, positive cash flow is important to me. Make sure you have money in reserves to cover possible loss of rent for up to 6 months, in case your property stays vacant. Always play safe, and you'll stay ahead of the game.
As for timing, you better hurry up and snag up something while you can. Our market is in the toilet. In the Little River area, for example sales of condos for the last quarter of 2007 were at 8.41%. Only 8.41% of the condos available for sale, sold during the entire last quarter. At that rate, it will take us almost 3 years to deplete current inventory. Homes., on the other hand are faring better: they stand at 14.97% for the quarter, or 1 year and 3 months away from depleting current inventory. All my savvy investors are BUYING, BUYING, BUYING. Don't wait till the media tells you the market is good, because it will already be too late - the sellers read the same papers....
Check out my blog @ http://www.MyrtleBeachHomes.US/myBlog for regular advice on making the most of your hard earned dollars. Good luck! Mirela Monte, GRI, ABR, BIC, SC & NC
1 vote
Eric Zink, Agent, N Myrtle Beach, SC
Sun Nov 18, 2007
Well psmith, actually this is the best time to buy a condo, right now it is turkey and xmas gift time. so generally it is slow at this time of the year. Sellers know this and if they need to sell they will entertain offers more now. also this is the year end so for tax reasons. Once the New year begns Real Estate does pick up and you odds of getting the same deal will be less. I hope that helps you..
0 votes
Jake Ehlers, Agent, Wayzata, MN
Tue Nov 13, 2007
I do not know the Little River, SC market but I have been in the RE business since 1970. The best time to buy is when no one else is buying, ie, in Minnesota Nov, Dec, 1st part of Jan, the seller think they are never going to sell in this market at this time with the bad weather etc.
In SC there is a time when the sellers think they will never sell, that's the time to buy.
0 votes
Cindy Kidd, Agent, Columbia, SC
Tue Nov 13, 2007
Just Looking,
That is the million dollar question. No one knows when the best price is going to be available. You have to treat Real Estate purchases somewhat like the stock market. Is there a chance that once you purchase prices will decline more? Absolutely! Is there a chance that they will shoot up right away if you do not purchase now? Absolutely!
All I can advise you to do is check and see what price condos are selling for in the Little River, SC area. I know that some homeowners have pulled out of the beach market due to the increase in hurricane insurance. We have had a slight downturn in the SC market and interest rates are at an all time low. You are the only one in the end who can decide whether it is the best time to purchase property or not.
Good luck.
0 votes
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