Why invest in income property in PTown and stats
The fundamental benefit of investing in income producing real estate in Provincetown is the opportunity to own a tangible asset that has the ability to grow both in value and generate income. Provincetown has always been a very popular vacation destination couple that with the advantages of owning an asset, where the bank may be willing to finance up to 75% of the purchase, the tenants or renters help pay the monthly mortgage, yet you reap all the benefits. These benefits include growing income stream, future appreciation, and the potential of tax advantages. As for risk, while it is certainly present in the short run, an owner’s risk tends to diminish systematically over time as the mortgage balance is paid down, rents are raised annually, and property values increase over the long term.
Investing in income property in Provincetown also allows you to take full advantage of the extremely powerful investment tool know as “financial leverage”. What is financial leverage? It’s simply the ability to purchase an asset of much greater value than the initial amount invested. If you where to invest $250,000 in a stock or mutual fund and that investment appreciated by 10%, your gain would be $25,000.00 If you were to take the same $250,000.00 apply it as a down payment on a $1,000,000.00 rental unit, and it appreciated by the same 10%, your gain would be $100,000.00, four times greater! Probably more than any other single factor, the opportunity to apply the fundamentals of financial leverage is why real estate in Provincetown has always been such an attractive investment alternative for investors.
Some interesting facts:
- Total housing units 3,712
- Occupied housing units 1,726
- Owner-occupied housing units 922
- Renter-occupied housing units 804
- Vacant housing units 1,986
Median Sales Price: (according to The Warren Group):
2004: Jan - Dec. - 1-Family $654,000, Condominium: $329,000, All Sales: $385,000 The Fiscal year 2004 tax rate is $5.45 per thousand dollars of assessed value.
Median Family income according 2000 U.S. Census figures: $39,679
- Retail stores 286
- Restaurants 67, with 7768 seating’s
- Licensed inns, hotels, guesthouses, camps & cabins 134, with 1962 rooms for 4748 people
- 3 taxi companies
- 15 parking lots, with 1191 spaces for cars
- Fire department 74 volunteers with part time Chief; 5 fire trucks + the Airport Crash Track
*stats by the U.S Census Bureau
