Beachfront Property Guide » investment property

Common Pitfalls When Buying Oceanfront Land

Jack — Thu, 04 Feb 2010 01:07:00 +0000

Buying undeveloped oceanfront land and building a house on it can be a great, more cost-effective way to obtain your dream home. Not only is it generally cheaper, but you get a new house that’s made to your specifications and that will be exactly what you want. You won’t have to worry about aging siding, shoddy construction, or cracked foundations because you will be able to decide what types of materials and construction methods are used to build all the different rooms of your homes. Before you jump right in though, there are a few basic pitfalls that you need to avoid so you don’t end up with a property lemon – one where you can’t build your home and you find it increasingly difficult to sell.

Know Why the Property is for Sale

The first thing you need to know to make a good purchase of land is to know why the property is for sale and why the previous owner didn’t develop it. Ocean front property is a scarce resource, especially in tourist hot spots, and finding land that isn’t developed is even rarer. Find out why other land was developed while this land wasn’t. It may be because the owner never had the time or money to do it or the property was recently split off from a larger tract of land, but you do need to watch out for a few things.

First, there may be local zoning restrictions on the property preventing any construction from taking place on it. It could be in a key watershed area or the home to the breeding ground of an endangered species. Find this out at the local zoning board before placing any bids for the property. Also have someone come in and examine the property. There may be sinkholes or the ground may be so unstable that it won’t support the heavy foundations of a home. Make sure you’re not spending a fortune to build a home on sand. Finally, there may be problems with shoreline erosion. If the shore is eroding around the property, soon the home may be too close and have to be moved or succumb to the tides.

Make sure that you find out all the answers to these questions before seriously considering buying the property.

Look For Local Utilities

Another reason that a oceanfront property may not have been developed is the lack of local utilities. Make sure that the property is close enough to, at the very minimum, electric and water lines and has sewer access or can have a septic system installed. Cable TV, internet, and gas lines are also near essentials, especially if you plan on living in the house full time or renting it out. In properties that are close to other developed areas this may not be a big problem, but if you are looking at more secluded beachfront property, always check this, otherwise you might find yourself digging trenches in the backyard and reading by candlelight!

What Other Potential Development Might Take Place

Finally, when you’re deciding whether or not to buy a certain beachfront property, always try to think about what other development might take place on the land around yours. While you won’t ever be able to know for sure, inquire about who owns the land around yours. Is it owned by other single-person landowners with homes on it? Or is the beautiful coastal forest behind your property owned by a large hotel chain that is eyeing permits to develop it?

Some development can be good for your investment, especially if it places your property closer to nightlife, shopping, or other attractions, but some development may be bad, particularly if you were hoping for a more quiet atmosphere yourself. Always have an eye on the future.

Buying oceanfront land for sale to build your dream home on can be incredibly rewarding. You’ll get to see your dream home sprout up exactly the way you want it without having to make any sacrifices. However, before you can do this you have to make sure that the property is able to support a home. By following this advice you’ll be well on your way to making sure that you can build a home on the land you purchase.

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.

How to Find the Perfect Beach Front Property

Jack — Sun, 27 Dec 2009 23:56:13 +0000

Finding the right beach front property can be incredibly hard. There are so many locations, real estate agents, and other factors to choose from. But, by doing careful research and making sure that you have examined everything to do with the house, you will be able to find the beachfront property that you want in no time.

Examine Your Budget

The first major aspect that you have to consider when attempting to buy beach front property is your personal budget. How much money you have available to spend will dictate where you can live, what type of house you can buy, and how close to the beach you can get. For most of us, this will limit our choices somewhat.

Never try to buy a home that is out of your price range or that you would feel uncomfortable making the loan payments. If the subprime mortgage crisis of 2008 taught most Americans anything, it’s that you can’t have your cake and eat it too. Also, and perhaps just as importantly, keep in mind that mortgages are not the only upkeep costs that you’re going to have to pay on your home. You may have to furnish it, pay taxes, maintenance, and insurance. Once again, depending on where you live these can be very significant costs.

Know the Area

If you’re buying this oceanfront property for your personal use, especially if it’s for use as a primary home, make sure that you know the area very well before you decide to make a significant investment in it. Even if you have been to a town a few times during tourist season, once everyone leaves, the town can become completely different and show you a new, more unlikeable face.

Also make sure that you are able to take the climate. For some people, the tropics may be good, even great, for a week, but when you’re down there longer, you can start to notice other things than the ever present sun, like the bugs, common rain showers, and the humidity. Also make sure you know how much extreme weather you are likely to have to encounter. Hurricanes are an all-too common phenomena in many Caribbean locations and the threat of them can greatly drive up your insurance costs, making your dream home ultimately unaffordable. On top of hurricanes, there may be other, more severe storms that blow in off of the sea, or monsoons or dry spells to deal with depending on your location.

Keep the Local Housing Market in Mind

Especially, if you’re buying this home as an investment property, make sure that you are intimately familiar with the local housing market before you make the plunge. In many areas prices for housing has outstripped rental prices in recent years. This means that you could find yourself in many places earning less in rent each month than it takes to pay for upkeep on the actual property. If you needed this money to make the mortgage payments, you could find yourself high and dry sooner than you think.

Using the services of a trustworthy local real estate agent can help you greatly in this, as they will be aware of the recent trends, what’s working for investment or rental beach front properties, what areas are good deals, and what areas have been jumping up in price recently.

Inspect the Building

Finally, always inspect the building and the areas surrounding it for how solid the construction is and how likely it is to corrode in the sea air. If at all possible, have a certified architect inspect the building to make sure that it doesn’t show signs of premature wear and tear. Also make sure that all the plumbing and drainage around the house are up to your standards.

Finally, when you’re inspecting the house, don’t forget to look at the land around it, especially if you are buying property right on the beachfront. See how high the tides are and inquire about what the waves are doing to the shoreline. Are the eroding the beach to the point where you soon will have your house in the ocean instead of bordering it? Is there enough vegetation in the area to protect your new home and the shoreline from winds, rains, storms, and high tides? All this needs to be taken into consideration.

Finding the right beach front property for you does not have to be incredibly difficult. Just make sure that you do the research that’s required, inspect the property before you buy it, and know what you are getting yourself into. By following these steps, you should find yourself with a new beachfront home, vacation house, rental, or investment property in no time.