rickjones posted on July 02, 2011 08:23
Here are some interesting national statistics that DO pertain to LBI. Affordability during the first quarter of housing rose to its highest level in more than 20 years, according to data recently released by Wells Fargo.
The major reason for the affordability increase is the low interest rates offered. Careful shoppers with some flexibility can now find rates below four percent!
The other main reason for the drop is the continued decline in median prices on for-sale properties.
With the reduced pricing and low interest rates, many investors are rediscovering Long Beach Island, where they can enjoy steady rental income in their multifamily homes and condo units. Savvy investors purchasing a $600,000 multi-family property that nets $30,000 in rental income and find 4% money for 30 years not only cover their principal and interest, but cover most of the taxes as well. Not total cash flow coverage, but once they are done taking the various deductions available for investment property, they actually make money on the property! PLUS they get to use the property all fall, winter, and spring, enjoying time on LBI! Not a bad way to invest.