If you are considering making a real estate investment, then you might be thinking about purchasing a beach house. A lot of people’s first instinct when buying more property is to do this because beach houses tend to appreciate their value and also give investors’ families somewhere to spend their summer vacations. Beach properties are also great as rentals, especially in today’s day and age, when Airbnb properties can yield thousands of dollars for just a weekend booking.
If you are interested in purchasing a property down by the sea, then this post will tell you whether or not it’s a sensible idea to do so:
Initial Price
It’s first important to make clear that the cost of a seaside property isn’t cheap, no matter where you look. Beach properties are highly desirable. The search terms “beach condos” or “condos on the beach” show up very often on search engines, because so many people are searching for seaside property. You need to be aware that if you intend on investing in seaside real estate that the property you are going to buy isn’t going to be cheap. While it is possible to minimize the amount that you have to pay by shopping in less popular areas, property prices are still going to be more expensive than in suburban areas. Thankfully it is possible to get a second mortgage, even if you have a first. A second mortgage can make buying another property possible if you are on a budget.
Long-term Investments
In answer to this post’s titular question, yes seaside real estate makes for a fantastic investment. The primary reason for this as explained in the previous section is that properties by the beach are extremely desirable. Purely because of the desirability of the seaside property, they make for fantastic investments. Purchasing one of these houses is a guaranteed way to earn some extra cash because they always appreciate value. This is especially true considering global warming, which is causing temperatures to rise throughout the United States. People want to have somewhere to escape to in hot weather.
Other Considerations
If money isn’t an issue and you are looking for a beach house, then there are some other things that you can consider doing which can boost your ROI. Beach houses that are situated in gated communities are more popular than those that aren’t, mainly because gated communities provide greater security. Most people don’t live full-time in their beach houses, so having security in place to ensure that one’s house doesn’t get burgled or trashed during periods of absence is a great advantage. The property’s location is also important. Properties in Florida tend to be a lot more popular than ones in New York, for example.
Family Vacations
Buying a beach house isn’t just a great way of earning money, it’s also a great way to invest in something that your family will be able to use and enjoy for many years. In addition to giving you somewhere for you and your family to enjoy, a beach house will also save you a lot of money on hotels. You will no longer have to pay for hotels and temporary accommodation on your trips to the beach because you will be able to stay in your beach house for free.
Rental Accommodation
When you aren’t using your beach house, you can lease it. The Airbnb platform is a very popular choice for people who are interested in leasing their second homes. You can earn a lot of money using the Airbnb platform to lease your beach house. Alternatively, you can lease it through a traditional estate agent, renting it to a family. If you lease it through a realtor then you should be aware that you likely won’t be able to return to the house once or twice a year for vacations, because people will be living in it. Only lease it to a family through a realtor if you don’t intend on using it.
Performing Renovations
If you really want to make a lot of money, then you could consider buying a house that’s located on the beach, that is in a state of disrepair. You can then completely transform the property’s interior and exterior, renovate it, and sell it. You can make huge profits by renovating and flipping houses. If you are interested in getting into real estate, then this is definitely something that’s worth considering. Make sure that you employ professionals to perform renovations for you, so that you can be sure they are completed to a satisfactory degree.
Beach houses are fantastic investments. If you have money set aside and want to invest in a type of property that’s guaranteed to appreciate in value, then the seaside property is what you are looking for.
