Key West Real Estate

Key West Real Estate

In general the market has been slow to non-existent for the past eighteen months. There are signs that the market is beginning to lurch forward... albeit in small increments, both in terms of units sold and the price point, which is in the lower quadrant. I think it's a given that it's only temporary as the most reliable indicator... corporate money is aggressively buying in the area... that will trickle down! Lets look at the different categories.

Residential - some great buys in Old Town, and when the market starts to move this will be the first residential area to feel that upswing. I hope the locals that were on the price bubble take advantage of this temporary drop, and buy before it passes them by... maybe for the last time.

Condos/Condo Hotel conversion - will take a while for the inventory to be absorbed and the new condo/hotels will not perform for the potential buyers as advertised. I would be very suspect of projected rentals and returns on one's money.

Commercial - some corporate money investing heavily and other parties looking... some good buys are out there now.

Overall the market shows great corporate and local support... construction is strong... prices have held strong, in spite of some negative national events, and people believe that Key West real estate is a better than average investment for both the near and long term. Talk to a REALTOR!

Real Estate in Margaritaville

Key West appears to be at another crossroads in its development. When you have an island that is 2 miles by 4 miles (locals like to say we live on a 2x4), and generate the kind of money that it does... sooner or later the corporate big boys are going to want a piece of the pie. It's actually a tribute to the residents gritty spirit, who have guarded their paradise for so long, in spite of Jimmy Buffett singing its virtues for the last thirty years, that it hasn't gone corporate before. What does this mean... simple in terms of real estate... its values are going to continue to escalate... just as sure as the boomers continue to age! You won't hear it here first... but it bears repeating... location... location... location and in this case it's Key West. Get some... you snooze you lose.

Second Home/Investment in Key West

While investments in Key West real estate have shown a steady upward climb in recent years, there is an overlooked niche that makes sense in terms of investment.  The home/condo that has a transient license that allows the property to be rented on a daily basis.  This type of investment allows you to buy and pay for a much more expensive home than you would buy and let sit vacant .... the beauty is somone is subsidizing a large portion of your investment.  Let's talk real numbers!

I have a great two bedroom two-and-a-half bath single-family townhouse with private pool that grossed $100K last year - $40,000 for expenses, leaves you $60,000 to pay the mortgage, taxes, and insurance.  Right?

You say, yes!

It's possible... but you need a couple of things to ferret out the true money-makers from the recent condo conversions that won't come close to those performance numbers. The Key West Experts specialize in these type of properties - they're there... you just need the right guide.