Why Should You Consider Waterfront Property In Your Real Estate Investment Portfolio?
Waterfront property has become so popular in the last decade for so many different reasons. It’s one of the best things you can have in your investment portfolio and it’s a versatile property that can be very profitable. If you want a few reasons why you should consider taking advantage of this amazing investment opportunity then keep reading.
Waterfront properties are perfect for anyone who wants a great return on their investment without working too hard at finding the perfect property. A waterfront home is perfect for long term rentals, short-term rentals, or to keep and sell at a higher price. Let's take a look at a few of the reasons why they are so versatile.
Ways a Waterfront Property Can Be Used
This is easily one of the best reasons for you to start looking into a property that is closer to the water or any beaches in the area. Short-term rentals have become so popular for people on vacation who prefer to stay at a nice home instead of a hotel and you can use this to your advantage.
These properties are usually very easy to manage and maintain and you can charge a good rental rate. For anyone who isn’t at the level of hiring a property manager, don’t worry because it’s easy to keep up with the maintenance. A quick cleaning in between renters and some small gifts like snacks, drinks, or maps to local hot spots will be all you need to keep your rental rating high and your guests coming back.
One thing you need to be aware of when it comes to purchasing specifically to rent is the local rental laws. Some cities and counties have started to enact regulations, laws, or new zoning that limits or permits short-term rentals or imposes a tax that you will need to pay. It varies depending on where you are purchasing but you should do some research into what you can do and what limitations the area might have before you purchase.
In recent years, many people who have been cooped up in their small apartments have longed to live where the air is fresh and clean. This has meant an upswing in waterfront and beachfront properties for more than just cottage use. There are plenty of tourist-heavy towns where the costs of homes are lower than the larger cities nearby due to the lack of employment in the area which is perfect for those who have started to work remotely.
In the last few years, many businesses have started to allow their employees to work remotely so they can look for homes in whatever city they’d like. When a beach or lakefront town relies on tourists in a specific season, they have a lower overall cost of living which makes their real estate costs lower too. For the same price as a one-bedroom home in the city, many new buyers can get a two-bedroom in a remote lakefront area so it’s easy to see which one they would choose.
Vacation homes have also started to become few and far between with many people forced to tighten their purse strings due to the pandemic. The extra cost of a vacation home paired with the lack of being able to travel has made a large number of owners look at selling off their extra properties. For buyers, this is an ideal time to find properties that people are looking to unload at a reasonable price.
If you want to stop and picture your dream home to retire in then you’re likely going to picture something close to some water (even if that water is a golf course water hazard!) which means that waterfront property is a great seller for retirees. According to many reports, the most important thing to a retiree is their health, and living near the water has plenty of good health benefits.
Things to consider before investing
These are amazing properties for anyone who is just starting with investment properties and they are perfect for those who want to make sure they are not getting stuck with a property they cant unload or profit from. You do need to consider things that might cause a large drop in the value of the home.
Any environmental issues like water issues (especially if your property draws water from the local water source), flooding, or landslides can make your property value plummet if they start to create an issue. Homes near the water are also slightly more susceptible to mold so you need to make sure you’re keeping up on the maintenance of your properties.
Many properties like multi family homes or single-family rentals can only be used for one type of investment and they can sometimes be hard to profit from. If you get a waterfront property at a good price then you can be sure that you are going to make your money back from it. They are fantastic investment properties with loads of potential for so many renters so try looking for some waterfront property for your investment portfolio today.