Investing in Destin
Opportunities of Destin
Destin is known for many things beautiful award-winning beaches, amazing weather, and stunning views to name a few. Destin is also known as the “world’s luckiest fishing village” attracts around 4.5 million people a year. Each year more and more people are coming to Destin. With the growing number of people each year there is an increasing need for vacation rentals. With such an increase in population and vacationers, there are many opportunities to be had in Destin Florida.
Benefits of Owning Rental Property
Having a rental property near the beach has many benefits. A couple include having your own private spot that you don’t have to worry about booking or paying for. Another benefit and possibly one of the best is making passive income each year. Based on Meyer with VRBO the average was $35,944 and the high was $48,653 . This doesn’t necessarily mean you will make this much as there are expenses that come with the property such as cleaning fees, HOA, and repairs to name a few. But even with the negatives it still is one of the best investments you can make nowadays.
Stocks Vs. Investment Properties
On average rental properties make more than twice the income when investing in the stock market. You can expect between 5-7% growth on your investment cash in the stock market while investing in real estate is growing exponentially. Last year the average home price increased by 14.6% that’s not even including potential rental income. With the increase in value and rental income, you can see how valuable having a rental vacation home in Destin really is.
Now is the Time to Invest
When it comes to investment properties you really need to try to get a property sooner rather than later. The reason is that the growing price of houses works in your favor when you own a property works in your favor, but if you hold your money looking for the “perfect” property the growing prices end up working against you. Based on information based on an article from DQYDJ showing the growth of home prices (graph below). Sometimes it's worth finding a property that isn’t necessarily perfect, but at least gets you in the market.
With the market growth as it is buying a home or property doesn’t mean that you are locked into that unit forever. Sometimes buying a property renting it out for a year or two and reselling it can turn quite the profit. Selling is very easy right now with interest rates as low as they are averaging at around 2.875% with a 30-year Conventional loan or 2.25% if going for a 15-year Conventional loan. This is making properties sell extremely fast as long as they are decently priced.
Figuring out What Works for You
If you have been thinking about buying an investment property or this is the first time it has crossed your mind I would recommend looking into the subject further. There are lots of intricacies with buying an investment property and while I feel the information in this article will help you make your decision you have to remember each deal is unique. I would recommend getting with a professional that knows the area well so they can tell you what works and what doesn’t.
Good luck in your investment ventures, If you want more information on this below are a few articles that have helpful information.