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Delaware may be the second smallest state in the country. But don't let it mislead you. Delaware is also one of the biggest and best states for real estate investing. 

With its tax policies and strategic location, more and more people are moving into the state to live. Investors are also jumping in on closing home deals in the Diamond state. If you still don't believe us, well, you're the one who'll be missing out. 

If you want to know why Delaware is one of the best states for you as a real estate investor, keep reading. 

No Lodging Tax  

First, there are only five states in the country that collects zero lodging tax. These are the tax they placed on your Airbnb and short-term rentals. Without lodging tax, Airbnb and short-term rentals are true to their price, which can save you a lot of money. 

And out of those five, only Delaware and Hawaii have beach properties! In case you don't know, beach properties are the holy grail in the Airbnb world. Hence, a beach property without any lodging tax is a sweet and rare deal. 

Hotspot for the Great Migration

Here's the second reason. Delaware is currently in the bull’s eye for the great migration. Try to take a look at the tax maps. You can see that Pennsylvania, New York, Virginia, and New Jersey, are losing people every year. All due to high property prices, high property taxes, and a slew of other things. 

But guess where these people go? They are moving to Delaware more and more! As an occupant in the state, that could be bothersome. After all, we don't want too many people on our beaches, right?

But, it's different if you are a homeowner or an investor. It means there’s high buyer demand and hence prices will be rising. You also get lots of vacation and beach traffic which is perfect if you have short-term rentals. 

Plus, there’s 0% shopping tax and we have some of the best LLC formations in the entire country. So tax-wise, we’re a great state. 

Cheap Property Taxes

And finally, the numbers work well in Delaware if you're a real estate investor. And one of the biggest reasons is that property taxes are so cheap here. 

For example, we have people come down from Jersey that is paying $800-900 a month in property taxes. Meanwhile, the property taxes in Delaware on average is $1,200 a year. Talk about $9,600 in savings!

Hence, when it comes to lodging, corporate, shopping, or property tax, Delaware is hard to beat. 

Final Thoughts

Delaware is one of the best states if you are diving into the world of real estate investing. And as people from the major cities flock to the beaches of Delaware, now is the best time to buy or sell a home.  Contact us today at Loft Realty and together let's get moving into buying your next home here in Delaware.