Should I invest in a Money Market Account or Real Estate?
Your money is sitting in your money market account and yes, it's collecting interest, but the money market account can’t give you appreciation. Not only are you missing out on as much as $246,500 in appreciation, but you’re also missing the better cash on cash returns from the annual gross rental income produced by oceanfront condos.
Off the top of my head, I know of at least four oceanfront condo resorts here in Myrtle Beach South Carolina that generated excellent appreciation over the past 10 years and most of which produced higher cash on cash returns than most money market accounts.
The Sea Mist Resort.
The Sea Mist Resort runs around $100,000 for an efficiency oceanfront unit that in the last 10 years experienced $47,219 in appreciation, much less generates on average $16,865.90 in potential profitability each year (This number includes property management fees but does not include cleaning costs). That’s a cash-on-cash return of 16.86% on your money, much better than 5% you’re getting in your money market and you’ve made $47,219 in appreciation.
The Meridian Resort.
The Meridian Resort averages $170,750 for a 1 bedroom 1 bathroom oceanfront unit that in the last 10 years experienced $106,011 in appreciation, much less generates on average $11,314.73 in potential profitability each year (This number includes property management fees but does not include cleaning costs). That’s a cash-on-cash return of 6.62% on your money, better than 5% you’re getting in your money market, and you’ve made $106,011 in appreciation.
The Sailfish Resort.
The Sailfish Resort averages $405,000 for a 2-bedroom 2-bathroom oceanfront unit that in the last 10 years experienced $246,500 in appreciation, much less generates on average $21,050.65 in potential profitability each year (This number includes property management fees but does not include cleaning costs). That’s a cash-on-cash return of 5.19% on your money, pretty much the same as your money market account, and you’ve realized $246,500 in appreciation.
The Verandas Resort.
The Verandas Resort averages $510,000 for a 4-bedroom 3 bathroom oceanfront unit that in the last 10 years experienced $210,000 in appreciation, much less generates on average around $48,643.91 in potential profitability each year (This number includes property management fees but does not include cleaning costs). That’s a cash-on-cash return of 9.5% on your money, much better than 5% you’re getting in your money market, and you’ve realized the additional $210,000 in appreciated value.
Note: All projected profitability is based on cash purchases.
It’s clear to see that investing in Oceanfront Condos can give you an annual return if profitable and, in addition to your annual return, help you realize the property’s appreciation. This two-one-punch knocks out the competing money market account, leaving investing in oceanfront condo real estate the clear winner.
Call today to discuss your next Oceanfront Condo purchase in the Myrtle Beach Real Estate Market: 843-360-1737
Disclaimer: All information given is meant to be educational. I am only passing on historical information shared with me by owners, rental companies, and various publications. I am not guaranteeing these numbers, nor can I guarantee future rentals or appreciation. This information is not intended to replace your own research, or to provide legal, investment, or financial advice. Please consult an attorney for legal advice.