Investing in Oceanfront Property – What to Look for and Expect?
Owning a home by the ocean is something that most people dream of. The views, the sound of waves crashing, and the peace that comes with looking out into the water. Who wouldn’t want to wake up to that every day? Living by the ocean also comes with access to recreation activities such as surfing, boating, diving, etc. However, the calmness of the waters does come with a price. Is it affordable? Is it what you are willing to commit to? Is it worth it in the long run?
Before purchasing oceanfront property you need to weigh the pros and cons of the investment. Research on what to expect specifically on the area that you are most interested in, via realtors or even word-of-mouth. Remember: the supply in such properties is limited. The most common use for investing in oceanfront property is for rental use.
Rental use
Short-term rentals get higher ratings in and around vacation seasons. The biggest challenge is if there are no tenants occupying the property in between rentals. In order for the property to reach its maximum monthly profits, the unit needs to be kept up to standard as per advertisements. Expenses such as utility services, housekeeping, etc can be well managed more especially when the property is full most of the time. Since beachfront property is in high demand for vacations, you are more likely to enjoy a high rental occupancy rate.
Benefits of having oceanfront property
Since there is a high demand for vacation rentals located near water, rates rarely depreciate in value. If you do decide to sell the property, you’d be able to enjoy a great return on the investment. Investing in beachfront property also saves you a lot of money when you want to go on vacation with your family and friends. You would not need to pay for costs on expenses such as recreation activities by the ocean.
Cons of investing in oceanfront property
Due to the high demand for waterfront houses, the prices are elevated. To be able to purchase such property, you would have to compete with other potential buyers who would do anything to outbid you. Another downside in owning properties by the ocean is the high maintenance and management needed to keep the house intact as opposed to a house located inland. The high humidity from the ocean can cause mold growth, rusting, wood chipping, and rotting. Rising sea levels also have a huge impact on your decision to invest in property by the beach. Significant damage can be caused by natural disasters such as hurricanes and storms, lowering your property value and making it hard for tenants to visit the property.
The good outweighs the bad when it comes to investing in oceanfront property. Having the right location, an experienced real estate agent by your side and a clear vision of what your budget will allow you to invest in will help you decide on your investment. It is a rare opportunity to be able to own property by the beach, therefore make sure you know what you want when going through with the process.