The Pros and Cons To Investing in Real Estate at Myrtle Beach
Myrtle Beach is a beautiful coastal city located in South Carolina. The city is now a popular hub for tourists. According to a study in 2019, Myrtle Beach is visited by approximately 20.6 million people every year.
The place has plenty of accommodations and great places to visit aside from the beach. The real estate business in Myrtle Beach has also increased over the years, and you too can be a part of it.
However, owning a second home or a beachfront condo is a big step and needs a lot of consideration. To help you out, we are going to point out some advantages and disadvantages of buying real estate in Myrtle Beach.
The Advantages
Here are the benefits of investing in properties in Myrtle Beach.
1. Decreasing Interest Rates
After the 2007 mortgage incident, the market for mortgage loans and interests has been strictly regulated by law. At present, mortgage loans are less riskier and have lower interest rates.
The rule of thumb for house prices is that whenever house prices are low, interest rates will be high, and vice versa. However, since 2020, mortgage rates in the Myrtle Beach area are at a record low. During the months of June and July, the average 30-year fixed mortgage interest rate decreased by 3 percent.
This makes it a good time to purchase an oceanfront condo or a beautiful condo in the Carolina dunes.
2. Increasing Rental Rates
Myrtle Beach is a very up-and-coming hot spot for tourists. Every year, millions of tourists come to spend a relaxing time. All of these people need to stay in rentals and hotels.
Most tourists claim that rentals are better than hotels. If you have a property anywhere within a 65-mile radius of Myrtle Beach and put your property up for rental, you are bound to get tenants, especially during holiday seasons.
This gives you a good opportunity to make a stable rental income. You can use it to pay off your mortgage or renovate your property and charge even more. Fortunately, the rental prices are going up because of the increasing demand for Myrtle Beach and its beach houses.
3. Affordable Prices
Even if you discount the mortgage rates, the price of real estate is quite affordable compared to South Carolina standards. The median price of houses in Myrtle Beach is approximately $175,000. In 2019, it was about $156,000 in the residential market.
Myrtle Beach is also considered one of the cheapest suburban areas in the metropolitan area. Even the home prices in the neighborhood areas are close to or over $200,000.
4. Low Tax
The tax rate in Myrtle Beach and other areas in South Carolina is below average. Local and state tax is the eighth lowest out of fifty states. Income tax and property tax is also low.
Property tax is around 0.5 percent, compared to the average national rate, which is about 1.1 percent.
5. High ROI
We mentioned earlier that rental rates are on the rise. Currently, the minimum rate for a condo is about $1,000 per month and even a one-bedroom apartment can cost about $900. You will mostly find two- or three-bedroom homes here, and if you are planning to invest, you will likely purchase a home with at least two bedrooms.
If you have a two- or three-bedroom home, depending on the area, you can charge about $1,200-$1,400 every month.
This means your annual income can range anywhere from $20,000 to $40,000 each year. If your property is in a popular area, you can make even more.
Before making a purchase, consider the area, facilities, and amenities so you can later charge a reasonable rent and get a high return on your investment. This means you will be able to sell your house at a good price as well.
6. Comparatively Low Maintenance Costs
The cost of living in Myrtle Beach is comparatively lower than the nearby states, but it still offers the necessary amenities, facilities, and services.
Lastly, medical costs are about one-third of places like Miami and Las Vegas.
7. High-Quality Community Services
Myrtle Beach is packed with opportunities for recreational activities. The area is famous for its golf courses. Myrtle Beach has the highest number of miniature golf courses in the world.
If you have a passion and love for art, then you will be glad to know that nearly 600 art events are hosted in Myrtle Beach every year. There are also plenty of places to visit in the area to make your nightlife more interesting.
The community is very friendly and hospitable and has a mix of cultures, ethnicity, and religious backgrounds. You can count on them for assistance whenever you need it.
8. Offers Necessary Facilities
Despite the low cost of living, Myrtle Beach provides high-quality medical care services and door-to-door transport.
With the houses and condos, you can expect all the common amenities such as backyards and pools.
9. Award-winning Health Care Facilities
You will not have to worry about your and your family’s health when living in Myrtle Beach. There are multiple award-winning health care services and facilities here.
You will have access to high-quality medical services and resources including:
- Cardiovascular surgery
- Emergency Medical Assistance 24/7
- General surgical procedures
- Rehabilitation centers
The two most popular hospital systems here are the Georgetown Hospital System and the Loris Healthcare System. These systems include hospitals and access to emergency medical services and facilities. Nursing facilities for the elderly are also present.
10. Very Comfortable Weather
Almost 20 million people visit Myrtle Beach every year. The summer here is obviously enjoyable. The best part is, the heat does not become scorching as it does in other areas such as in South Florida.
During the winter you will be able to enjoy much better prices on services and utilities.
There won’t be many tourists around, so the area will feel much more peaceful and relaxing.
Natural disasters are common occurrences in beach areas but you do not have to worry about hurricanes since they rarely hit South Carolina.
Winter here is short and lasts for only about two months. The temperature during the winter will not drop below the freezing mark. On average it can get low as 34 degrees during the winter and in the summer it goes as high as 75 degrees. Either way, you will not have to face harsh weather conditions when you are living in Myrtle Beach.
The Disadvantages
Every area has some flaws and here are disadvantages of living in Myrtle Beach:
1. Extremely Busy Traffic During Holiday Season
Since Myrtle Beach is a popular tourist attraction it gets very crowded during the holiday seasons. During this time, the traffic here is absolutely horrible, especially on the highways.
Traffic during peak hours is even more frustrating. If you want to avoid it, you will want to avoid rush hour and possibly find alternate routes.
2. Pollen Allergies
This may not be a complete deal breaker but is cause for concern to people with allergy problems. The climate here is very temperate, and the areas are filled with plants and flowers. This means the amount of allergens and pollen in the air is also very high.
Your allergy medicines will take care of this, but if you have severe allergic issues then you always need to be careful. You have to stock up on your medicines in advance and be careful when outside.
It shouldn’t be a problem when you are indoors.
Final Thoughts
Before making any kind of investment decision, you need to allocate your budget and consider your financing options. There are also lots of properties to choose from. Some do come with HOA fees.
Overall, purchasing a second home or an oceanfront condo in Myrtle Beach can be a great investment option once you have everything figured out. But remember, no place is perfect, and Myrtle Beach has its flaws. It’s also a beach area, so the occurrence of natural disasters is something to think about. We hope this article was able to give you the information you needed to make a good decision.