Real Estate Confidential is a weekly chit-chat about new listings, sales, or other insider info on the Martha’s Vineyard Real Estate market, by Fred Roven, Martha’s Vineyard Buyer Agents. It appears each Friday in The Minute.
People consider Martha’s Vineyard real estate for vacation homes, investment properties, and to live an exceptional lifestyle. In spite of its limited access, the Island is inhabited by over 17,000 residents year round. During the summer, however, its population swells as its popularity as a summer vacation spot for the region has grown. In the summer, the Island’s population can swell to more than 117,000 people. On Martha’s Vineyard you can find unique cottage living and extraordinary luxury oceanfront real estate. Investment property and seasonal living is extremely popular as 56% of the Island’s properties are only seasonally occupied.
Half of the investment buyers surveyed by the National Association of Realtors purchased for rental income and 34% were diversifying their investments. In 2014 a Gallup Poll found 30% of investors preferred real estate with gold second at 24%. This year Gallup found that preference is up to 35% with gold falling below savings accounts in popularity. On Martha’s Vineyard, similar to other destination vacation markets, one lure for investors is the large vacation rental market. Of course, the high rents are seasonal and 100% occupancy in season is never a guarantee, so that all has to be a factor for consideration in your purchase decision.
There are many numbers to consider up front before jumping into a second home or real estate investment purchase. First, you will want to consider all of the additional expenses to maintain your second home. In addition to a potential mortgage, there may be utilities, tax and insurance, maintenance and repairs, landscaping or caretaking, and association fees. Mortgages for investment and second homes have easier terms and rates right now. If you are able to take the leap into investment property in this beautiful community, now is the time to do it.
You often hear the term “turnkey” for investment properties and 60 Windsor Drive in Westminster Acres is certainly that and much more. As an example of the income potential, the buyer will receive the rental proceeds at closing which currently stand at $30,000 for 2019. Westminster Acres provides the benefits of proximity to the bike path, equidistant to the down-Island towns, a bike bath to make biking access to South Beach half of the driving distance, and a short ride to Long Point beach. This four-bedroom home is a proven income producer or would make a comfortable vacation or year round home.
I am still shocked by the cost of living with an ocean view and steps to the beach. Unit G2 at 497 Katama Avenue in Mattakesett provides that opportunity at somewhat less in rental fees (but not much) than a free standing home in a similar environment and at a much lower price tag. This silver plus rated unit with views over Katama Bay, the Atlantic Ocean and in the distance, Chappy, rents for over $7,000 per week in August. In addition to the famed Atlantic Ocean beach nearby, there are all the facilities of the Mattakesett community, including a pool, tennis, basketball courts, and extensive children’s programs. In addition, you share in all the amenities of the Winnetu resort directly across the road, including the only restaurant on South Beach, The Dunes.
The custom-crafted, walk-to-town home at 229 State Road in Vineyard Haven is currently being used as a very successful rental property and provides many opportunities for other personal or multi-purpose uses. The property is unique for Martha’s Vineyard investments in that it is a quality home in every way that integrates reclaimed architectural details with modern, state-of-the-art construction features including energy-efficient insulation, multi-zoned heating and air conditioning plus custom milled wood paneling, built-ins, crown molding and wainscoting. You can continue using the property as an AirBnB/vacation rental use as is with its two kitchens for the multi-generational owners, or turn it into a highly visible work-from location with the detached, heated 800-square-foot garage/office/workshop with separate driveway entrance, and still retain some rental potential.
The secluded property at 66 Curtis Lane in Edgartown is a short walk to downtown and is a luxury family compound just waiting to happen. The property currently consists of a two-bedroom main house, a one-bedroom guesthouse and a playhouse to use as you will. With town sewer connection, the property has a potential of six bedrooms. The property, surrounded by the Edgartown Golf Club on two sides, is in an established neighborhood yet the private setting gives a definite “up-Island” feel. The seller is particularly anxious to sell and the property, although not rented this year so you can move right in, has had up to $80,000 seasonal income.
My current favorite development property is at 36 & 38 Pinehurst in Edgartown and offered at $965,000. The neighborhood has seen phenomenal growth in the past few years with a recent sale on the street over $1.6M and a new listing nearby offered at $3.875M.
Click here for a list of these and other investment possibilities.
For more Real Estate Confidentials, click here.