in·vest·ment [in-vest-muh nt] –noun

1. the investing of money or capital in order to gain profitable returns, as interest, income, or appreciation in value.

One of the first and most often questions we are asked,

“Is a Galveston condo a good investment?”

Our simple and most direct response is “ if you have the resources to purchase a property and your intentions are to use and enjoy it with friends and family for several years, historic data relating to Galveston real estate appreciation could suggest that the property might be worth more than you paid for it at a future date…but, does that make it a good investment?

In addition to debt service, (if you obtain a mortgage to purchase your property), you must take into consideration property taxes, and a monthly HOA that pays for the various insurance policies required as well as providing the maintenance of the complex.

As logistics and commitments will indeed preclude most owners from enjoying the use of their vacation condo fifty two weeks or weekends a year the first thought that enters into the equation is “can my condo be rented during the times that I am unable to use it?”

Again, no simple answer to this one either, the more important question is “can I rent my condo part-time and realize a profit that will be enough to satisfy all of the financial carrying costs that will I will incur…probably not…Keep in mind that Galveston is predominantly a vacation destination with a limited season. Our “season” typically runs from Memorial Day weekend to Labor Day weekend with several special events held at various times during the year with the Lone Star Rally, Mardi Gras and Dickens on the Strand Festival being the most popular.

Another vacation rental consideration is the weather; it’s difficult to make up for lost revenue due to rain-outs.

Some complexes have restrictions regarding short term or vacation rentals, while others offer full service, on-site management personnel that cater exclusively to the needs of the vacation rental crowd. Some complexes that offer vacation rentals allow pets, however most do not.

Another option to consider, is having your property managed and rented by an Island based, off-site vacation rental management service.

While there isn't a one size fits all answer, buying a second home or vacation condo should be approached with the same level of scrutiny and due diligence as would be exercised with any real estate purchase.

Remember, knowledge is power, and real estate is certainly no exception, do your homework!

We are here to answer your questions and our candid input and opinions may occasionally diminish your excitement and jubilation, but we want you to be both prepared and confident prior to buying your condo.