Real Estate Investing: Is Virginia Beach a Good Place to Invest

Real estate investing is considered to be a profitable investment. It can provide you with continuous passive income and serve as a great long-term investment if its worth rises in time. You can thus use it as your take-off point to build wealth.

Real estate investing can, indeed be profitable – if you are aware of, and understand the risks as well as the benefits to it. For real estate investing, major risks would be problematic tenants, undesirable locations, negative cash flows or minimal/lack of liquidity, high vacancies, and hidden structural problems. These are on top of the unpredictability of the nature of the real estate industry.

Yet, there are still property investors, and people continuing to venture into real estate. Why? Significant reasons are the continuing income real estate property investors gain from rental income, profits, and appreciation of such from business activities on the rental properties. Profits and benefits from real estate investment and property management are continuing passive income, steady cash flow, tax advantages, leverage, and diversification. Learn more about real estate investing.

Virginia Beach Trends for 2022

As of the first quarter-end this year, 2022, the Virginia Beach real estate market saw prices higher by 10% than the previous year, with the median selling price at $331,000. The average period of Virginia Beach real estate properties stay listed on the real estate market is 14 days, a week shorter than 2021’s 21 days.

The Virginia Beach real estate market is competitive, very. A lot of houses get multiple offers, even some with waived contingencies. The average numbers show that Virginia beach properties receive 5 offers that are sold within 14 days, selling for around 3% above the list price.

A Virginia Beach home’s average sale price was $360000, an increase of 14.1% from last year. The average price for sale per square foot in Virginia Beach also rose 13.9% from the previous year at $205. “Hot homes” stay on the list for around 6 days and can sell for a price of 6% above the list price.

A hot home is the term in real estate property management for a house that will sell within the first two weeks on the real estate list. This comes from an algorithm based on user activity like scheduled tours, favorites for an individual home, the market activity nearby, and other points of data.

By April 2022, the median list price of Virginia Beach homes was $369,900, higher than the $345,000 last year. That made Virginia Beach real estate a seller’s market in April 2022, meaning there are more prospective buyers than homes available.

Why You Should Invest in Virginia Beach Real Estate in 2022

You have decided to invest in the real estate business but are not yet sure where your investment property will be. The beautiful coastal city of Virginia Beach Va is the right place for you. Real estate investing can give you splendid returns. Virginia Beach attracts many real estate investors. The booming industries make for thriving local developments and a robust market situation.

It has desirable neighborhoods, some of the country’s top schools, and a diverse growing population. These are just some of the multiple reasons that make the cities of Virginia Beach VA and the Greater Hampton Roads region unique in their appeal for real estate investments. Virginia Beach City rental demand is rising and consistent, thus putting rental properties into a valuable portfolio in investment property management.

Location, Location

Location is a highly critical, if not the most critical, factor in real estate. It is equated with value. The location of Virginia Beach City and its surrounding area, the Greater Hampton Roads region, offers so much value for real estate investors that most US cities cannot do.

Stunning beaches and Nature’s Beauty

Along the Atlantic Ocean and the Chesapeake Bay are wonderful beaches that draw in lots of people looking for short-term rentals (or even long-term rentals!) meaning a prospect of year-round business in the rental market! If you don’t know it yet, the 35-mile-long coastal City of Virginia Beach grew in attraction and development that has earned its place in the Guinness Book of World Records as “The World’s Longest Pleasure Beach.”

From the touristy Oceanfront to secluded beaches, there is something by the seas for all preferences. And, Virginia Beach is the location of spectacular state parks and wildlife sanctuaries and, of course, its location on the East Coast has enriched it with various significant historic sights and sites!

Presence of Military Bases

Virginia Beach City and its surrounding cities in the Hampton Roads Region contain 16 military bases, most notably Naval Station Norfolk, the world’s largest naval base. This presents many job opportunities for older and young professionals alike.

More importantly, the majority of the more than 80,000 military personnel choose to live off-post, either rent or invest in real estate during their station assignment. The proximity of Norfolk International Airport to Virginia Beach adds to the easy commuting of these personnel.

High Demand

With the continuing population growth, seasonal and long-term, Virginia Beach grew to attract people seeking investment property in the city. Around 62% of residential properties are lived in by the homeowners while 33% are occupied by rent tenants (tourists or business travelers). Only 5% of properties remain vacant, although not for long.

There has been a constant demand for rentals from short-term rentals to yearly single-family homes to multi-family houses developing a thriving rental market, resulting in the average rent in Virginia Beach being higher than the national average. What drives this high demand in Virginia Beach VA real estate investment, either for rent or property purchase, making for a thriving rental market?

The Possibilities are Endless

Whatever category of real estate property you would want to invest in is all there in this city, making it one of the best places attracting property investors on the East Coast along the Atlantic Ocean and the Chesapeake Bay.

Year by Year Rentals. Condos, duplexes and single-family housing are the money-making entries in a real estate portfolio. The average rent for yearly rental properties is quite high in this region.

Multi-family housing properties. Multi-family homes have been thriving in recent years. In 2019 alone, the vacancy rate for this category of real estate was a mere 6.2%. The high number of these properties gives the investors the chance to collect a monthly cash money flow while residing in one unit and having the rest rented out.

Short-term/holiday rentals. Seaside properties in the region are popular as short-term rentals. These are fully-furnished units rented nightly with a minimum of three nights in the months from April to September. For the rest of the year, that is, off-season, these properties are rented on a monthly basis as winter rentals. The average gross revenue from these properties is 30% more than the standard yearly rental.

Fully-furnished Rental Properties. An emerging market that is rising rapidly in demand is that of the flexible and fully-furnished rentals located near the bases, hospitals, and major business areas in Virginia Beach, like the Town Center. Renters are business travelers, traveling medical professionals, and contractors who prefer an extended stay in a house instead of a hotel. These properties are rented out for monthly rates for different time periods, even short-term rentals depending on demand and location.

Fix-and-Flip or BRRR. A new trend in the Virginia Beach real estate market has emerged –- the fixer-upper! Shrewd Virginia property investors interested in updating their portfolios are resorting to taking advantage of tax incentives through a 1031 exchange or investing in any of the qualified opportunity zones (there are 8) in Virginia Beach. The BRRR is a strategy in real estate investing where distressed properties are flipped and transformed to be rented out to become further funds for their investment.

Final Word

Regardless of being a prospective investor for the first time or already an astute real estate magnate, Virginia Beach VA has every opportunity type for real estate investment. Long-term demand for Virginia Beach rental properties is here to stay. Its location in the region and even vis-à-vis the country make it a key setting for industry and business advancements, plus of course, its appeal as the best pleasure beach town and its warm residential communities.

Whether you are in search of a duplex, multi-family, attached/detached single-family rental property, the ideal residential real estate investment is in Virginia Beach VA just waiting for you to invest. Get in touch with Barry Jenkins – Better Homes & Gardens Real Estate | Real Estate Agents in Virginia Beach, VA to learn more about the current market in the neighborhood.