Beachfront Property Guide » Investment and Rental Properties

Finding Cheap Beachfront Condos for Sale

Jack — Tue, 30 Mar 2010 04:08:42 +0000

It’s not always easy to find affordable beachfront property, especially in the United States. Many of the premier spots have long ago been discovered and developed and the deals are long gone. However, one of the ways you can get great deals, even in mature markets is to find preconstruction beachfront condos for sale. Condo units that are in preconstruction will be significantly discounted compared to what they will be when the units are finished. Buying a preconstruction beachfront condo isn’t for everyone and there is a degree of risk involved, but most astute investors can make huge returns with them.

Condo units that are in preconstruction are priced at such a discount because the developers that are building them need funds for construction. This is for many reasons. Banks generally require at least a degree of funding before they will issue a loan to develop a property. Developers want to get to this number as quickly as possible so that they can break ground and ultimately sell their units and make a profit sooner. Because of this, they’re willing to offer significant discounts to people that are will to share the risk with them.

Despite the big discounts, buying units in preconstruction isn’t for everyone. Specifically, it is great for people looking to invest, but not a great option for people who want the home for their own personal use. Investors can use the property to flip or as a rental property. Because of this, the unit only has to be something a certain demographic or the general public will like, not something that the individual investor has to like and live with every day. You also generally won’t be able to move in for a year or two, a time frame that will discourage many individual property owners.

Beachfront Condo Construction

If you’re an investor, buying oceanfront condos in preconstruction is almost like buying an option. Because you only need to put down a small amount of the final price at the beginning, usually around 10% of the final price, you stand to get huge returns, or huge losses if the property market collapses. Since most of your gains in preconstruction investment will come from this leverage that you can receive, it’s imperative that you study the market before you put one penny down. Here are the things that you should look for in a good property market.

The first thing that you need to look at is the oceanfront condo unit itself. Is it something that the general public will want to buy? What is the target demographic that you can expect to sell or rent the property to? Why would they want to rent this property. Before you buy any property make sure that you know exactly who you’re planning on selling or renting the condo to and why they would choose your condo over other locations or even other condo units in the same area. You should have a firm answer to all these questions before you continue.

While you’re investigating who will buy the beachfront condos that you’re looking at investing in, also do a through backgrounds check of the developer that’s in charge of your property. The developer should have a strong track record and be in good financial condition so that you can be assured they can get the building done without running into financial trouble.

Next, look at the other building supplies in the pipeline for your area. What other condo buildings, housing developments, or other infrastructure will be in place when your condo unit will be ready that can impact the property value of your unit. Ideally, you want to find an area that has improving infrastructure to attract more people or make it easier to get to but some kind of constraint on development, making sure that supply is limited.

Finally, especially if you’re looking at buying property outside the U.S., the local property market should be fairly liquid. This means that there’s lots of buyers and sellers and there aren’t any major obstructions to buying or selling property. In some countries there are restrictions on foreign property ownership, so make sure you take this into account before you sign your final papers.

Where you’re looking at investing in preconstruction beachfront condos, there are several things that you should look for. First, make sure that you know who wants to buy your property and why and the financial state of your developer. Next, look at the market. The market should have several characteristics to make it a good investment. These include a abundant supply of buyers, supply constraints, liquid transactions, and of course an appreciating market. If you follow these tips you should be well on the way to finding a great beachfront condo for a cheap price that can net you a nice healthy retun once construction is finished.

Beach Investment Property Guide

Jack — Fri, 05 Feb 2010 01:43:50 +0000

Despite the down market, if you have money right now is the time to be buying beach investment property. Real estate values are much, much lower than they were even just a year ago, meaning you’ll have less to pay for a down payment up front and you’ll be paying less in mortgage fees every month as well. Low mortgage rates are also help by near-zero interest rates, which will help you pay off more of the property faster. If you have the money, now is a great time to make the investment. In a few years when the price on beachfront property has rebounded, you’ll have already missed out on a huge return. If you are trying to make a return, on your property, there’s two ways that you can do so, through renting the property out or by selling the property for a higher value when it appreciates.

Renting Out Properties

The most common and effective way of making money off of ocean front property is to rent the property out to vacationers. If you want to do this, there are several things that you need to look for in a property to buy that will make it more attractive to renters.

First, you will want your property as close to the beach as you can afford. While properties that are right on the beach will set you back a pretty penny, ones that are just a few minutes walk back are much more affordable. Be careful however. If you buy a condo that’s a 30 minute walk from the beach, you may find it hard to find willing renters. If you can’t find an investment property somewhere in the vicinity of the beach, try to find one close to other tourist attractions to lure renters.

If you can find a property that offers any other amenities, you’ll find it much easier to get renters as well. Pools and workout rooms in condo complexes are incredibly popular, as are spas and hot tubs. Anything that can make your rental unit stick out above all the others will help.

But, make sure that you beware some common pitfalls when you’re buying and operating your beachfront investment property. While renting it out can help you pay your mortgage bills, don’t forget out the other expenses you have to account for. This includes cleaning bills week to week, landscaping, insurance premiums, condo upkeep bills, off-season repairs, and fees paid to your realtor. Also keep in mind that most of your income will come during the busy season, with little to no income coming in during the off-season. Balance the amount that you earn so you still have enough to pay for your mortgage in the offseason! Also beware of any local laws placed on landlords. Some properties may not be able to be rented out or you may need to install certain things in your home, like fire extinguishers or sprinklers to keep them in compliance with local laws.

Renting out your property to vacationing families is a great way to make a return on your investment.

Buy Low Sell High

Another way to make money from beach investment properties is to sell the property at a higher level than after you bought it. This can involve just buying a waiting for the property to appreciate in value, but more often involves developing the property or improve it in some way.

In recent years, the boom in this has been known as “house flipping” and many people made a considerable amount of money off of it, both with beachfront property and home inland as well. However, with the bust in the housing market and the downturn in the economy, it’s harder and harder to find buyers and this type of home buying and selling is no longer really practical.

However, if you have the money and don’t need an immediate return, buying property and selling it for a profit later is still an option. While the housing market may remain depressed, or at least sluggish, for some time, once it does pick up again you’ll have a valuable commodity to offer people who missed the bottom and want to get back into the housing market.

Beach Investment Property is a great way to earn a return on your money. In addition to making money, you’ll have a home that you can visit for at least a few weeks out of the year and a physical asset that will never be worth absolutely nothing.

Renting Oceanfront Real Estate: Essential Tips

Jack — Thu, 07 Jan 2010 03:55:44 +0000

If you own a piece of oceanfront real estate and you aren’t planning on living in it year round, renting it out can be an easy way to pay for at least the upkeep, and many times will give you a significant portion, or maybe all of the mortgage payment back as a result. While it is not incredibly time intensive, being a good landlord requires at least a little bit of commitment of money and time on your end. Here are some tips to keep your renters happy, coming back for more, and more likely to give you beachfront property a good recommendation to their friends.

First, make sure that you get a good realtor and know all the rules that apply to investment property in your area. Some areas require that rented homes only can be visited by their owners for short periods of time for “maintenance” purposes or will place other restrictions on the property. Before renting your home out, make sure you know any rules and regulations it will be subject to.

Having a good realtor is also essential to successfully renting out your property. If you have a good realtor, you’ll be getting more and better quality tenants than you would with a lesser quality one who doesn’t know how to market beachfront homes as effectively. They will also be able to advise you on what that rules your property is subject to are and will help you more fully understand them. Make sure that your realtor screens the renters that are using your property. If you end up with lower quality renters that are likely to throw a party and wreck your prize home, you’ll end up losing more money on renting out your property than you’ll gain! And it will leave your home in bad condition for the next people that are in line to rent it, causing them to complain about the condition of your home.

Speaking of the condition of your home, if your oceanfront property is being rented out, it is absolutely essential that you keep up with the maintenance on it. This includes keeping the lawn cut and the house clean and in good condition. It also includes preparing for any emergencies. You should have a first aid kit, working smoke alarms, a fire extinguisher, and all the pertinent contact details for the local emergency response teams in a well-marked and defined location. This will make sure that your renters have a good experience and will make them more likely to return and rent again and much less likely to complain about anything.

Renting out your property means that you won’t be around it for a long period of time, so try to lower the crime risks on the property as much as you possibly can. Install motion sensor activated security lights to deter nighttime criminals and if you can, install a home security system for when no one will be using the house. Use your common sense as well. Don’t put expensive electronics, priceless family heirlooms, or other expensive decorations into the house when it’s likely that they could get broken by tenants or stolen by thieves.

By following these simple steps you should be able to get your oceanfront real estate in the best condition to be rented out and make some money to cover maintenance and maybe even some money for your mortgage. Always make sure to keep your home in good condition and have a good realtor represent you who can find great tenants who will make the most of their experience and won’t ruin your home.

Beachfront Properties: Should You Rent Them Out?

Jack — Mon, 28 Dec 2009 04:13:44 +0000

One of the easiest ways to make a return on your beachfront property, or just to earn a little bit of extra money for it, is to rent it out for certain times of the year. Whether you are looking to buy the property as an investment and rent it out full time, or would just like to keep your house making you some money when you’re not around instead of letting it sit empty, there are several things that you need to think about before renting out your beachfront properties.

The first thing you should do before deciding to rent a property out is to get acquainted with the local housing market. This is especially true if you are buying the property as an investment and want to rent it out full time. In some areas, beachfront property prices have dramatically outpaced the prices that people are willing to pay for a rental for a week. This results in rental prices that won’t actually cover the mortgage and upkeep costs for the property. Beware of this if you are planning to be making a profit off of your beach home.

When you are doing this, it would be advisable to talk to a local real estate agent about the different opportunities for rental in the area. They will be able to tell you about how much a property like yours will rent out for and the different costs and fees that will be associated with renting your property out. On top of having to pay the normal maintenance costs for your home, when you rent out the property the real estate agent that you use will most likely get a cut, you will need to hire a maid service to clean it after the guests leave, and you will most likely need to invest a little more in things such as sheets and dishes.

Next, before you decide to rent out your home, get familiar with the local and state laws that govern rental properties. Some states place restrictions on properties that are rented out so that the owners can only stay in them a few weeks a year to perform maintenance. If you’re planning on making lots of visits down to the beach, this might make you choose not to rent your home. Also make sure that you’re not running afoul of any building codes. Many times homes or condos that are used for renting will need to have additional safety features, like frequently tested smoke detectors and fire extinguishers that allow the local authorities to come into your home and check if they are up to date. If privacy is a concern of yours, this may also make you a bit more wary to rent out your vacation home. Insurance on homes that are used to rent can also be higher than on homes just used as residences.

Renting out beachfront properties can be an extra source of income for people that have the money to invest in property by the beach. Just make sure that are well aware of all the rules and regulations that your house or condo will be subject to and that the revenues from the renting will be enough to cover the costs of owning if you’ve bought it as a strictly rental property. Only you will be able to know if the costs and benefits of renting our your property will be worth the costs associated with it as well.