Are you thinking of investing in real estate? Buying a residential property can be a great way to enter the field. But you have to choose the right piece of land. Not all properties carry the same value. And if you want to maximize your return, you must know how to measure the value.
Hilton Head Island is known for its scenic beauty. With its long beaches, it is undoubtedly a favorite for vacation. However, is it a good area for housing investment? Yes, it is.
Today, we will discuss on which basis we are calling Hilton Head the next housing investment hub. We have also mentioned some factors you should keep in mind before making any investment.
Why is Hilton Head Island A Good Choice For Housing Investment?
Whether it is your first-ever investment or you are looking for a lucrative area to invest in, Hilton Head is an incredible choice. It has a rising population and a thriving job market. Also, the island is usually packed with tourists, which makes the short-term rental system really popular.
1. Population Growth
A growing population in a particular area directly influences its real estate market. It generates more demand for residential properties. As a result, the value of the properties also increases to a great extent.
Hilton Head has had a notable population growth over the last decades. Its 8.46% consistent population growth rate clearly outnumbers the national average growth rate of 6.23%. So, there are always frequent tenants and potential buyers if you want to resell your property.
2. Strong Economy
Hilton Head has a strong local economy thanks to its amazing job market. Hilton Head’s administration, law, and finance sectors are the highly paying fields and even provide higher wages than the national average.
It also has a booming tourism industry, which creates more job opportunities. The island’s high employment rate attracts more people to relocate from outside permanently. That’s why long-term rental is very common here.
3. Quality Education
Despite being known as a vacation home, Hilton Head always aims to provide the best quality education to its people. From preschool to universities, every opportunity is available for the students to pursue within the island.
More than 19,000 students are currently studying in 32 public schools in Hilton Head. Several private schools, faith-based schools, and top-ranking universities also ensure top-notch education to the students. No wonder young families are moving into the island, and the rental business is thriving.
4. Local Attractions
Hilton Head has a lively community with numerous local attractions. People here enjoy milder weather throughout the year and the cool breeze of the Atlantic Ocean. There are peaceful beaches, more than 100 miles of bicycling trails, hiking tracks which highly attract more people to move into this area.
Twenty-four world-class golf courses, tennis courts, and many other establishments like art museums and sculptures allow people to lead an eventful life.
5. Tourism And Vacation Rental
Located on the coast of the Atlantic Ocean, Hilton Head Island undoubtedly has nature’s blessing. Along with the 12 miles of long pristine beach, this island possesses multiple beaches. There are also several museums and spectacular sights to visit.
This is why about 2.6 million people visit Hilton Head annually, and tourism is the core of their economy. Many tourists nowadays prefer renting a vacation house during their stay rather than staying in a hotel. So, putting your property up for short term rental is highly profitable.
Not only tourists, as Hilton Head has temperate weather, but people from colder countries visit the island during the colder months. They are typically known as ‘snowbirds’. They also look for homes to rent for a couple of months before they go back to their own home.
Some Factors You Should Be Aware Of Before Investing
Investing in a housing estate in Hilton Head is a profitable business. However, you should also know some facts like high property value, short-term rental conditions, etc., before making any decisions.
1. High Property Value
Thanks to the thriving economy, the property value around the Hilton Head is relatively high. Buying a house on the island can be pretty expensive, given the area. The median home price on the island is around $730,000, which is more than the national average.
But in a way, it is quite beneficial, too. As the property value is increasing day by day, you can hope to get a high return if you decide to resell it.
2. Short Term Rental
Short-term rental refers to people who stay for a short period during their vacation. It has now become trendy among visitors and is a lucrative business, too.
However, you have to keep in mind that the short-term rental business is mainly seasonal. People from colder areas usually visit Hilton Head in between March-September. You may not find other renters for the rest of the months.
Also, not all Hilton Head Island communities permit short-term rental. In that case, if you intend to enter into the vacation rental business, you must choose a house in particular areas where STR is allowed.
Before investing in any property, it is necessary to research the area, its economy, and people’s lifestyle. If you ask me whether investing in Hilton Head Housing estates is a wise decision, I would say yes. The real estate business is now a booming sector on the island with highly profitable returns.