Tourism and Key West: Why its Real Estate is a Good Investment

Tourism and Key West: Why its Real Estate is a Good Investment

When you are ready to buy a home and want it to appreciate at steady pace, you should be looking for a property that’s in a destination location. The reason why is quite straightforward: locations where people flock have more dynamic economies, which means higher property values.

For instance, Key West is an ideal location because of several reasons. First and foremost, it enjoys year-round tourism, bringing vacation dollars into the local economy. Second, its land is at a premium, which increases property values substantially. Third, it’s a great place to have a second home for a dedicated location to stay and rent while at your primary residence.

Tourism and Key West: Why its Real Estate is a Good Investment

Tourism impacts local real estate in a really big way. If you take a look at residential homes in resort areas and compare those to average neighborhoods, you’ll no doubt see a substantial difference. There are several reasons for this, and here are some factors as to why:

● Tourism creates a need for more commercial construction. No matter what it is that drives tourism, be it the beach or something else, destination locations invite commercial enterprise. For instance, in Key West, marinas for sport fishing, diving, and other outdoor recreational opportunities.
● More jobs are created in tourist destinations. Since more enterprise is created, more jobs become necessary. That means there are more dollars staying in the local economy, and, the need for more housing, as well as other living necessities, such as grocery stores and retail establishments.
● Municipalities increase their advertising. As tourism builds, sustains, and expands, municipalities seek to capture more revenue and therefore increase their advertising. This makes more travelers aware of the destination, which increases tourism.
● More tax incentives are created to entice new business. Municipalities, counties, and states always seek to increase tourism because of the dollars it brings. These entities also recognize that businesses are positive contributors to the economy and therefore offer incentives so business will either relocate or open branches.
● Staycations become more and more common. Locals will opt to stay and spend their dollars within the locality during vacation days because of all the area has to offer. This provides a great benefit to the area and generates more revenue in the economy.

Keep in mind, none of this happens in a vacuum. Another sector that is directly impacted in a very positive manner is residential real estate. When an area becomes a destination location, or is one, local property values increase steadily. This dynamic is why tourism is so good for property values.

What You Need to Know about Renting Out Your Condo added 6-2-2015

If you own a condo and it’s not your primary residence or soon won’t be, you might consider renting it out instead of selling. This is an especially good decision if your owe more on the unit than it is worth, or, if you are going to be away for an extended period of time but need a place to return to in the future.

Condos make for good rental properties because tenants won’t have to worry about landscaping, and, will have access to the on-site amenities. What’s more, they will enjoy a more close-knit community and have a bit of extra security.

 

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