Despite, or rather in spite of, the recent crash in real estate prices, beach homes are a great investment. They hold their value as long as the land doesn’t erode away from under them, provide money making opportunities, and are more attractively priced than ever. If you’ve been looking to buy a beach home, now is the time.
The first big advantage to investing in a beach home is that the beach front property underneath the home will always have a high price tag. It doesn’t matter if the home is in good shape, bad shape, or terrible shape, the location of the home will always place it at a premium in the real estate market, even if after you sell it the home will be bulldozed. A home will add to the price, but if you lose it in a storm or for some other reason, the land will still always be valued.
The second reason ocean front homes make a great investment is that the provide other money making opportunities. They are easy to rent out to vacationers coming into town for the beach, and by doing this you might even be able to recoup the money you spend on the mortgage each month. This way all the appreciation that the property goes through is a profit for you.
Finally, with the real estate asset bubble that burst triggering the current recession, home prices are depressed and buying a home on the beach is cheaper than ever. You’ll have to put up less money up front and even pay smaller monthly payments than you would have if you bought the same house just 18 months ago. Now if definitely the time to buy.
Properties right on the water make great investments now for their low price, possibility to become investment properties, and increase and hold their value.