Buying a Home on Chincoteague Island
There are many things that should be considered when buying a home on either Chincoteague Island or the Eastern Shore of Virginia. One of the most important is resale value. Whether you are buying a waterfront vacation home, an island investment property or a family home on the Chesapeake Bay you want to make a wise buying decision. You can use the proceeds from selling one home to buy the next one.
While there are no guarantees that your new home will grow in value, there are steps you can take that maximize your potential gain.
Location, Location, Location
"Location, location, location," is a common phrase in real estate. Location is repeated three times to emphasize that it is extremely important to the resale value of your home. The idea is to buy property that will appeal to the largest number of potential future buyers. Of course sometimes people buy a property with the thought that they will never sell it. More often than not, circumstances change and the property does end up on the market for sale. A careful choice of location can minimize many potential negative influences on future resale value, and maximize positive influences. For example, the convenient water access that is found in and around Chincoteague and the Virginia Eastern Shore is a primary reason that people continue to want to live and vacation in these areas .
The Best Investment
As a fairly general rule, homes appreciate about four or five percent a year. Some years will be more, some less. The figure will vary from neighborhood to neighborhood, and region to region.Five percent may not seem like that much at first. But at an appreciation rate of 5% annually, a $200,000 home would increase in value $10,000 during the first year. So That means you earned $10,000 with an investment of $40,000. Your annual "return on investment" would be a whopping twenty-five percent.
Your rate of return when buying a home is higher than most any other investment you could make. Home prices on Chincoteague and other watefront villages on the Eastern Shore have risen significantly in the past five years.
Recession and Expansion
There are times when the economy is brisk and everyone feels confident about his or her prospects for the future. As a result, they spend money. People eat out more, buy new cars, and they buy houses.
Then, for one reason or another, the economy slows down. Companies lay off employees and consumers are more careful about where they spend money, perhaps saving more than usual. As a result, the economy decelerates even further. If it slows enough, we have a recession.
Balancing Act
The trick in buying real estate is to view all decisions with both a logical perspective and emotional perspective. If a situation presents itself that requires a trade-off, decide on whether there is a huge conflict or a small one. Logic should win the big conflicts, but emotion should always be a factor, even winning the small ones.
I hope you will let me help you in finding just the right home, building lot or commercial property on Chincoteague Island or anywhere on the Eastern Shore. You will find yourself making an investment for the future at a price you are willing to pay today.
