Congratulations on your winnings! While several years ago was the worst time to buy property (it was at its peak), now is a great time to buy if you are astute in making informed decisions. My uncle made a lot of money buying land and leases during the recession and it was the best decision of his life. He was struggling to come up with money to do it, but he followed the basic philosophy: buy low, sell high. Real estate still is a great investment, average returns of 6.5% minimally plus many tax advantages. The last 3 years the market had returns of up to 40%, the investors that had bought low could afford to ride it out, or they made a bundle selling high. What great choices!
I am a Florida realtor, and we have an active market in the panhandle of Florida even with the surplus of overbuilding (approx. 12 mos. of excess inventory). Investors are still buying, and the excess inventory means more competiton between sellers creating better opportunities price-wise. My advice: no matter what location, buy UNDER the current market value to allow for the market to finish settling and have equity already built in, and find a reputable realtor to guide you and supply you with the tools so you know you are getting a good deal. LOCATION, LOCATION, LOCATION! Make sure the area is a great rental location if you are planning to keep it rented, and with excess inventory you might find a newer property or one in great condition not requiring a lot of repairs. Just be sure that your realtor protects you with contingency clauses and do your due diligence, have a home inspection so if there are repairs, you know what they are. Properties in an area like here are usually handled by property management companies for a fee, lots of constant vacation rentals during season (March thru Labor Day) & "snow birds" rent for 6 mo. leases in the fall/winter before season starts again.
For example; in a resort area like Destin, owners schedule their own vacation times and keep their properties rented the rest of the time if on the beach. Definitely pays for itself if you even break even (after deducting monthly expenses), or better yet, a positive cash flow sheet! Great tax deductions, but a good CPA is important. Properties for rental can be bought less than 2 miles from the beach for $200,000 up right now if you know where to look. I prefer educating my clients so they make informed decisions as my business has always been about referrals, and repeat business.
Good luck wherever you buy, this is a great time for a smart business person! If I can be of further help, please feel free to contact me at: SC beachesofdestin@yahoo.com Just mention yedda blog, and I will be happy to advise you based on my expertise. Remember, YOU WILL ALWAYS MISS 100% OF THE SHOTS YOU DON'T TAKE, and even in the recession, Donald Trump continues to build his empire in real estate!