My family loves Kiawah Island, we go several times a year. Would like to buy my own vacation home/condo there but plan to rent it out enough to cover the ongoing cost. I know there are a lot of fees associated with owning on the island. I also understand Kiawah Island performs very different that other beach markets due to year round rentalibility but it's also more expensive. Also looks like overall home values have actually declined in recent years. Anyone have experience investing on the Island or expertise in evaluating this market for investment purposes? Looking for general advice on economic feasibility for single family home or condo/villa investment.
I would proceed with caution if home values have declined in recent years. It happened in my town when Amazon.com relocated their distribution facility that was located here. Another major employer relocated one of their facilities 2 months later that was located here. Alot of people left town after those 2 events. If they had a bank loan on a house, they just let the bank have it back. A $40,000 house sells for $9500. I should know, I've bought half a dozen.
I would run the numbers. Account for all your expenses including anything this location requires. If it will cover your costs and allow you to use it for free at today's price then I wouldn't worry about small market fluctuations. If the numbers make sense today then they should be as good ten years from now or bette. People will always want to go to the beach for vacation. The only thing that might slow that down is a major recession and that will affect all locations to some degree.
Thanks John. That’s exactly what I’m thinking too. Kiawah is such a unique ecosystem so also looking for feedback from anyone who currently owns an investment on the island.
Did you do the deal at Kiawah? I am currently looking at a condo at Mariner's Watch on East Beach Kiawah, and would love to hear from other Kiawah property owners.
Did either of you end up investing in Kiawah? Would love to hear your experience and any unexpected costs?