Vast amounts of affordable properties exist in Myrtle Beach, and it’s a perfect place to invest for steady, long-term growth in real estate.
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If you’re aware of Myrtle Beach, it’s either because you’ve been there or because it has been defined as one of the more affordable alternatives for Florida resorts.
Myrtle Beach does not only have the best weather in South Carolina, but it is also one of the fastest-growing vacation markets in the nation. At the moment, it is mainly a safe haven for tourists but many homeowners are moving there. You may need to do your own investigation before purchasing or investing in real estate there. This information will help you to understand the competition and will boost your profits.
The obvious question is, ‘Why are houses in Myrtle Beach so cheap?’ Let’s find out!
The Myrtle Beach Real Estate Market
Myrtle Beach has likely been one of the most profitable real estate markets in the country for the last five years. Let’s see what new developments have occurred over the last year.
These days, the average home price in Myrtle Beach is around $156,300 and ranges between $144,600 and $189,900. As for the previous year, house prices have gone up by 6.5%. If all goes as expected, the average home price will rise by 3.8% next year.
Myrtle Beach’s retail price per square meter is $175, which is higher than the standard value for the “Myrtle Beach Conway” subway at $137 per square meter.
Estimates have also shown that 14.2% of Myrtle Beach visitors made deals at discounted prices in October 2019, just before the COVID-19 pandemic hit, making it a great choice for those looking to do business in the region. The results of this indicate that sellers are prepared to negotiate since they are finding it tougher to sell these assets at the normal value.
The starting rent in Myrtle Beach is $1,100 per month. This is far less than the starting rent in the “Myrtle Beach Conway” subway, which is around $1,300.
These values are estimates for the residential sector over the last 3 years, ending in the fourth quarter of 2021. Property values here are expected to rise by 82% over the coming years. This prediction has an 82% chance of being right.
Bank-Owned Homes and Foreclosures in Myrtle Beach
A number of statistics have been reported on foreclosures and properties owned by banks in Myrtle Beach. Statistics show that the mortgage delinquency rate is 0.6%, which is lower than the nationwide average of 1.1%. Along with the majority of their property values, the residential house prices in the U.S. have seen a 20% decline from their height in 2007 to late 2011.
Due to the huge debts, many homeowners find their homes being worth less than the valuation of the mortgage that they owe them. The annual percentage rate at which initial Myrtle Beach home mortgages are qualified for an increase of 14.4%.
In October 2019, the majority of houses in Myrtle Beach that issued foreclosure papers decreased by 11% from the previous month (September 2019) but increased by 240% from the same time (October 2018) the previous year.
Why Should You Invest in Myrtle Beach?
Whenever and wherever you invest, you need to evaluate current trends and information to see whether you’re likely to do well as a real estate investor. Long-term investments in Myrtle Beach rental properties can pay off handsomely as house values continue to climb per year. We’ve gathered a few statistics for all those who are interested in Myrtle Beach real estate investments. However, you shouldn’t rely on this information alone.
Affordability
According to South Carolina benchmarks, Myrtle Beach is one of the most affordable places to live in the area. In terms of the average home price, the average value in the region is around $170,000. As of 2019, the average value of a single house in the residential sector was $156,300.
Another reason for investing in Myrtle Beach real estate is the city’s relatively low living costs.
Outstanding Return on Investment
The minimum monthly rent for a condominium in Myrtle Beach is around $1,100. The monthly rent for a one-bedroom unit will reach nearly $900. Two- and three-bedroom units are the most prevalent property types in this area’s real estate industry.
This means that a single-family home will comfortably rent for $1,400 per month. And what about the visitor rental? These properties earn between $20,000 and $40,000 a year (most of it during peak summer months), based on their location and occupancy degree.
Myrtle Beach, South Carolina, is a great vacation destination for a property purchase, but still, expand your knowledge to see if it’s the area that is appropriate for you to invest.
Low Taxes
South Carolina has a lower tax rate than the national average. The state and municipal taxes were the eighth lowest in comparison to the other states. The income tax rate is not particularly high as well. If you’re considering buying Myrtle Beach real estate, keep in mind that real estate taxes are among the lowest in the country. A standard family’s property tax is about 0.5%. The national average property tax rate, on the other side, is only 1.1%.
High Quality of Life
The overall quality of life in Myrtle Beach is significant. The Northern Myrtle Beach School is rated B+. The country as a whole got an A for retiree quality of life. This raises the worth of residential properties in Myrtle Beach.
Relatively Low Costs
The primary benefit of living in Myrtle Beach is its lower cost of living in comparison to neighboring nations. You can also be assured that all the essential facilities and amenities are accessible too.
Myrtle Beach’s overall rental rate is 30% less than the national average, which ensures that the value of Myrtle Beach Coastal Rental properties is very competitive in comparison to other options available.
Are you concerned with the cost of treatment and hospitalization? You’ll be pleased to learn that medical costs here are nearly one-third of what they are in Miami or Las Vegas.
Appropriate Location
Myrtle Beach is not very large, and it takes less than 15 miles to reach all of the necessities and facilities. There are several housing options available, ranging from affordable one-bedroom apartments to luxurious six-bedroom apartments. For less than $200,000, you can purchase an enticing beachfront condo. Everyone is handled fairly and gets a decent place to work, whether they are middle-income citizens or millionaires.
Consistent and Reliable Community Services
The very last aspect you should consider in Myrtle Beach is what to do for leisure. There are more mini-golf courses per square mile in Myrtle Beach than anywhere else on the globe. Here is a more in-depth guide of Carolina Forest neighborhoods which you might find very exciting.
Myrtle Beach holds almost 600 art festivals each year and South Carolina is known for a plethora of casinos. Whether you’re considering retiring here or relocating altogether, the culture is very welcoming. Here, you’ll encounter a diverse range of fascinating people from a variety of occupations, communities, and cultural faiths. You can enjoy a healthy and happy retirement life here.
The community is well-known for offering invaluable assistance and help when it is necessary.
Exceptional Environmental Conditions
Per year, 14 million people visit Myrtle Beach. Due to the enthusiasm of summer, you can comfortably generate money. Summer market opportunities raise your revenue potential significantly.
Following the season, you’ll enjoy a long, hot, and peaceful fall and winter. However, there is no need to be concerned with boredom. Residents benefit from reduced utility and service charges throughout the low season. Additionally, the resort would feel more relaxing and quieter with fewer visitors.
You don’t need to be concerned with hurricanes since they often come ashore in South Carolina. Additionally, you’ll avoid the oppressive heat of South Florida in the summer.
Winters are short in this area with only about 40 – 60 days of temperatures below 50 degrees. The upside is that you’ll get to experience all four seasons without being exposed to the extreme northern or southern cold and heat.
Conclusion
The Myrtle Beach real estate sector offers affordable options, a healthy return on investment, a competitive rental environment, and the potential to raise tourism revenue. It’s ideal for owners and has the potential to evolve with time. As a result, acquiring an excellent opportunity to invest in Myrtle Beach could be a great decision for your future.
