When purchasing any property it’s essential to decide why you are buying it and, if necessary, whether it is a good investment. The good news is that there is rarely, if ever, a bad time to buy a beach house.
Beachfront properties are more expensive than houses set back from the beach. There is something alluring about being able to walk onto the beach in seconds. But, in general, this is a sound investment.
Of course, you can enter the home lottery and potentially win a beach house. That’s an even better investment!
The trend in Australia for many years is for house prices to rise. There are instances when the prices drop. If you’re unlucky enough to buy any property just before the prices drop you could find yourself losing money or in a negative equity situation.
However, house prices always go up again. That’s simply the nature of property and, all you have to do is be prepared for the long term when buying a beach house.
Even if the value drops in the short term, as long as you can afford the mortgage payments you will be better off in the long term.
If you’re buying a beach house to live in then this isn’t an option. But, if you’re purchasing it as an investment you can make a substantial amount of money from a beach house.
In short, it’s a desirable place to vacation. All you have to do is tidy the house and make sure it reaches all relevant safety standards. That includes electrical testing and balustrades around any pool.
You’ll then be able to list it for rent and you’ll find plenty of people willing to rent it. Costs involved in this are minimal, mainly a little administration and a reliable cleaner.
Of course, if you prefer you can get a management company to handle everything for you.
The income generated throughout the year, especially in peak season, is likely to cover the cost of your mortgage.
That means you’ll effectively have the house paid for. Plus, once the mortgage is fully paid, the income from renting your beach house can be a nice extra to your wages or may even allow you to retire.
A Stepping Stone
Finding the funds to purchase your first beach house investment isn’t always easy. However, once you have created your first investment property, you’ll find it’s easier to secure additional funding. This is mainly due to your increased equity, meaning banks will feel more confident about lending you funds.
In short, a beach house isn’t just a great investment for the funds it can bring you, it can also help you secure additional investment properties and transform your financial well-being.
Alongside this, a beach house can, and should, be used by you as often as possible. There is no better way to relax and de-stress, helping you to enjoy a higher quality of life.