Deciding whether or not to invest in real estate is most definitely a personal decision, and it’s one that can be a bit tricky. When you choose to passively invest via an investment firm, instead of giving up your time and energy (in addition to your funds) on landlord responsibilities and legal obligations or as a fix-and-flipper, it’s important to determine if the firm you’re planning to invest with is making smart lending decisions in their target markets. Of course, every developer wants to get in on the ground floor of the next hip new city neighborhood or suburb, but what about areas that are already well known and established, like Virginia Beach, Virginia? Is investing in Virginia Beach real estate a profitable endeavor?
For the most part, a good investment firm is going to do a fair amount of due diligence on their end to ensure that they’re making sound investments for their clients, and part of that due diligence is continuously evaluating the target markets that their developers want to build or rehab in. When a developer or flipper is considering investing in Virginia Beach real estate, many investment firms - including Walnut Street Finance - would consider it to be a smart move.
The market in Virginia Beach has remained steady for years, even managing to avoid taking a major hit during the market crash in 2008. During this time, there was a decline in transactions and sale price, but neither was so drastic as to significantly impact the overall market. More importantly, since that time the market has leveled out at its current transaction rate and sale price, and seems to be sustaining itself well.
Location! Location! Location!
Investing in Virginia Beach real estate is also a good idea because it’s a desirable area. As a well-established locale, buyers - whether they’re for residential or commercial purposes - seek out properties in the area because they know that it boasts the amenities and infrastructure they’re looking for. That means that developers and investors can, for the most part, go into a transaction knowing that there will be a strong return on investment whether the property is being sold or rented.
Virginia Beach is a Destination Hot Spot
Finally, one of the key reasons that investing in Virginia Beach real estate can be a smart move is because it’s a huge tourist destination. With nearly 40 miles of beaches vacationers flock to the area in the warmer months, meaning that in addition to a market for single-family homes and commercial space, there’s also a large market for short-term rentals. In fact, only 64.1% of the residential properties in the city are owner occupied. For businesses, this means that there’s a more diverse pool of people to visit their shops - grocery stores and large chains may get more frequent visits as tourists are stocking up on things they need for their stay, things they forgot at home, or just taking advantage of having a convenient and familiar shopping location while they’re away from home, while local mom and pop shops and restaurants can benefit from their unique perspective on the area.
Are you interested in learning more about investing in real estate? Check out our guide: