Coastal properties can be great investments – providing you buy the right kind of property. Whether you’re buying to flip, hoping to make money out of a holiday home or buying a seaside property to move into yourself, these five tips can ensure that your coastal property investment plans go swimmingly.
Search for upcoming areas
Many of the most popular coastal towns and cities will be very expensive to buy in. They’re also not great for making a return – owners of property in popular coastal areas are increasingly find it hard to locate buyers who are rich enough to afford their homes. You’re far better off buying in an upcoming area where the property prices are still relatively low. This guide Sarasota, Florida & Medallion Home Waverley, The Perfect Setting For A New Home discusses one such area. Distinguishing between upcoming and unpopular can be hard – look out for towns which have new attractions such as restaurants and campsites, but aren’t entirely touristy.
Consider accessibility
Accessibility can have a big impact on property pricing and demand. There are some beautiful seaside villages across the world in which the property pricing is fairly low, but this is due to these settlements being so remote that few people can commit to living there. Accessibility is also important when buying a holiday home as guests will want attractions in the area that don’t require a long drive to get to.
Be wary of high-risk flood zones
Some coastal properties are prone to flooding. These properties often come with a low price tag and can seem like a bargain on the surface. Agents may not mention the fact that there is a risk of flooding, so it’s something worth asking yourself. Such properties can be difficult to insure, which means you could end paying a lot of money in damage repairs. This guide 8 Things To Understand Before You Buy A Home In A Flood Zone is worth reading if you’ve been considering such a property.
Renovate strategically
By renovating your coastal property, you may be able to make more of a return on it. Consider features like swimming pools, hot tubs, rooftop terraces and balconies which will all add a lot of value to the property. You might also be able to make use of sustainable energy – coastal property can sometimes get a lot of sun or wind, which can make them the perfect properties for adding solar panels and home wind turbines.
Do you need a view of the sea?
Sea views are popular amongst buyers, but they do push the price up considerably. You might be able to charge higher rates for a holiday home overlooking the sea or charge more to potential buyers, however you’ll have to be prepared to pay more when buying the property yourself. Having a property in a coastal town that doesn’t have a seaside view could save you money – so long as it’s only a few minutes walk from the sea, you’ll still get the demand.