We’re thinking outside the box. Have you considered purchasing a placeholder home here on Sanibel?
I just read an article titled, “In Hot U.S. Markets, Second-Home Seekers Should Consider Buying a ‘Placeholder’ Now and Leveling up Later.”
Getting Your Foot In The Door
This idea of buying something to get your “foot in the door” here on island is not new. In fact, I’ve had this same conversation with many clients who wish to retire on Sanibel. Oftentimes, they purchase a condo, rent it out or use it for family vacations, and then when they’re ready to retire and move full-time or even seasonally, they purchase “up” to a larger property.
In fact, here’s an article we published in 2019 that explains “4 Reasons to Buy Your Retirement Home BEFORE You Retire.”
Capitalize on Local Appreciation
Buying a placeholder now allows you to generate rental income when you are not using the property yourself. It also means having a presence in the market and owning a piece of property that will keep up with local price appreciation. This can result in a stronger selling/buying position when you are ready to move up to a larger place.
Don’t Rule Out Condos
Did you know, “Sanibel Condos Can Gross $80k Rental Income”? We published that article in 2019 as well. It will be interesting to publish an updated report on rental income in a year or so to see how those numbers have changed in 2020 and 2021.
Condos on Sanibel can generate substantial rental income. You might find that the income generated is worth continuing to hold as an investment property, even if you decide to purchase a larger home to spend your retirement down the road.
Think Long Term
Despite the increased demand in home buyers caused by the pandemic, most seem to be purchasing with the long term in mind. We’re hoping this leads to continued market strength over the next few years. We encourage you to think about your end goal when planning your real estate sale and purchase timeframe.
As always, if we can help with any questions about the local market, or provide advice on your particular situation, we’re happy to help! Don’t hesitate to reach out by phone at 239-472-1950 or email Team@McCallionRealty.com.