A father’s advice to his daughter on her wedding day was that “marriage should be viewed as a marathon, not a sprint. ” The same can be said for many property investments, in that long-term gain should be the priority rather than targeting a quick profit (which in reality, often fails to materialize). Short-term or vacation rental is a good, solid asset class as a property investment, but just how do you start to understand the economics? Being aware of the balance between income and expenses can help you manage and increase the benefits of owning a Charleston vacation rental.
So you have researched the market, looked at some projects, attended a tax auction or two and read everything about Charleston SC real estate investing that you get your hands on? Along the way, you have frequently come across terms used by the industry when it comes to measuring performance. You can now “talk the talk, ” but can you “walk the walk? ” Have you really understood what they mean and how to use them? Let us look at a few by way of example:
It’s no secret that Charleston SC is an ideal vacation spot on the east coast and with that, a lucrative property investment market for vacation rentals. At its most basic, there are 3 ways to fund an investment property – cash, personal mortgage, commercial mortgage or some combination of two. If you are building a portfolio on this basis then here are some points you may do well to consider to increase your chance of the bank saying, “YES. ”
There is much debate in Charleston SC around the merits of rentals deemed “short-term ” or vacation rental. On the barrier Islands it is more accepted, perhaps because the population was always more transient in nature. Whatever the outcome of this debate, these vacation rental properties in Charleston can be considered as an “investment asset class ” with their own advantages and lifecycle. So just what should be considered when looking at this property type as investments?