While Go Zone accelerated depreciation is a great reason to buy real estate investments on the Mississippi Gulf Coast, it is not the only on. While every home buyer and investors needs are different, the one thing everyone wants to see is appreciation in their investment. Looking for emerging real estate markets is one of the key factors for investors who want to see their real estate investments grow in value.
The Mississippi Gulf Coast is a truly under-valued area in terms of real estate in general. Part of this is due to other states’ overall view of Mississippi in general, but we all aren’t toothless slobs that can’t enunciate – just the ones they show on the 6 o’clock news. The rest of us are at home with our families or working 🙂
Whether you believe it or not, the Mississippi Coast is a true emerging real estate market and more investors are realizing that now. If you want to be an early mover, contact me and let’s analyze your investment strategy.
So What Makes the Mississippi Coast so Special?
The MS Coast has numerous economic engines which include:
- Federal Dollars. Keesler Air Force Base (Biloxi), Naval Construction Battalion (Gulfport), Camp Shelby Army Base (Wiggins), Stennis Space Center (Hancock County) and the Coast Guard station (Gulfport) which are all within about 40 miles of each other. Keesler Air Force Base is home to the Cyber Command Training Center as well as the Hurricane Hunters. These bases keep a steady flow of military personnel moving in and out of the area which helps to balance the housing market even when national housing statistics are very gloom.
- Local Economic Influences. Most strong real estate markets have at least one driving force to the economy – the MS Coast has many. Not only does south Mississippi have the military installations, but it also happens to be a major gaming destination. Billions of dollars have come to the Coast through the gaming industry. A “Vegas on the Beach” if you will, major casinos in Biloxi, Gulfport,
and Bay St Louis, with more planned in other areas such as D’Iberville (a truly growing area) as well. Other economic engines include seafood, ship building, tourism (beaches, islands, fishing) and a growing container port. Gulfport is expanding its already large container port to be one of the largest in the country and will be state of the art (see Port of the Future – outside link opens in new window). - Prices. The Gulf Coast of Mississippi is one of the most undervalued areas in the country as far as what you get for the money and what its potential is. With the exception of a surge immediately after hurricane Katrina that had to balance itself out, homes have shown very steady appreciation historically. Currently, new homes can be bought in the $120k+ range but inside subdivisions, I recommend going a step above to the $130k-$140k range. The initial cash on cash looks less appealing, but these subdivisions usually offer a much better exit and less chance of “going downhill”. There are many very nice subdivisions that offer smaller homes in this range that would appeal to investors, but most agents do not show the potential. For those comfortable with buying older homes and doing some upgrades, it is very feasible to see positive cash flow and equity almost immediately in 10+ year old homes. Want to take the development route? There are an abundance of quality properties to start on.
- Tax Incentives. Tax incentives are a great reason to look at an area, but there is so much more to it. Many investors who bought under the first part of the Go Zone got took in by unscrupulous builders and real estate agents that sold properties at above (in my opinion) market value in order to reap the rewards from those sales. Go Zone is an awesome incentive – when you are talking to someone who wants your repeat business in the future and not just a fly-by-night company looking to make a buck. If you are considering taking advantage of Go
Zone, time is drawing near. Don’t wait until “later” because you may lose out on your ability. Pickings are slim and the best properties go to early movers. I can help you get great deals if you contact me in enough time. Don’t let Go Zone be your only reason for investing here though – there are so many good reasons. - Location. Location, Location, Location, right? The Biloxi/Gulfport/D’Iberville/Ocean Springs areas are located on the beautiful Gulf Coast. If I didn’t have you before, let me say it again – waterfront communities! Everyone loves being near the water. Well, maybe not everyone, but a LOT of people do. We also happen to be approximately an hour from New Orleans, LA and Mobile, AL. Both of these cities can be identified as emerging markets on their own, but the MS Coast is better than either due to federal spending, diversified local economy, gaming, tourism, and the in-progress port expansion.
- Growth Potential. The MS Coast is comprised of several cities including Bay St Louis, Pass Christian, Diamondhead, Long Beach, Gulfport, Biloxi, D’Iberville, St Martin/Ocean Springs, and other smaller areas surrounding. In many cases, there is no clear definition between these cities other than the corporate lines that divide them. This makes for a huge growth potential in these areas producing one large city base rather than several smaller communities. There is also plenty of room for expansion in the northern parts of these counties which has already started due to lower insurance rates north of the Interstate, however, the bulk of the population is in areas south of the Interstate with the exception of North Gulfport and the outstandingly fast growth in the D’Iberville area.
- Quality of Life. As a “military brat” myself, I have lived in numerous place.
I was born in Biloxi and moved back in 1999 to help my grandmother, who’s health was diminishing. I have found no where else that I really could say that I loved as much as here. There is always something going on, the people are great, the dining is just as good as the people, and when you simply don’t know what else to do – a simple walk on the beach or day on the water will put your mind at ease and really help you appreciate life.
This is my home, one of the best emerging markets in the country, and I enjoy it daily. An investment on the MS Coast is a great one indeed, provided you are talking to the right person. I look forward to discussing your needs with you and working on your portfolio. When you are ready to move here yourself, I look forward to relaxing with a fishing pole in hand, and enjoying what the Mississippi Coast has blessed us with.
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