Waterfront living is always ideal and elicits a sense of romanticism for everyone who dreams of living by the beach. Imagine waking up every day with a picturesque seascape. At that moment, when the sun meets the sea, all worries seem to go away.
No wonder many people choose to move from the city to have a piece of heaven by the beach. Yet, while most people only think of owning a seaside home, do not limit yourself if you have the resource. Think bigger and own a commercial space by the water.
Why Buy A Rental Property?
Forbes states, “Owning assets that produce income is a better financial strategy than owning assets that generate expenses.” Simply put, if you only own a house for your own use, you pay tons of bills, and there is no incoming cash to negate these expenses.
On the other hand, owning an apartment or a vacation rental is an income-generating way to shoulder the expenses that come with owning a property. Also, if you choose the right location for your property, its value will appreciate in the years to come.
Why A Beach Property Then?
The main reason why you should buy a beach property is the location. As mentioned above, if you buy a property in a good location, it will eventually increase in value. What’s a better location than being right by the water, right?
Buying a commercial space with a waterfront view also means you get to spend a vacation in your property while earning. Work doesn’t feel like work if you are doing it in a place that is dear to your heart.
Another benefit of owning a vacation rental by the beach is tax write-offs. It only means that your tax payments will be reduced by deducting expenses in your property like utilities, mortgage interests, and property management fees.
Owning a rental property by the beach also guarantees income because people love spending time by the water. When a property is beachfront, you can charge more because of its prime location.
In the future, your vacation rental can also become your retirement home. Who wouldn’t love to grow old with your special someone while watching the sunset by the beach?
What To Consider
Your beachfront property does not necessarily have to be a single home or apartment. If it is within your capacity, buy a building that you can convert into several apartment units.
There’s a famous quote, “Success only comes to those who dare to act.” If you dream big and act big, there are greater chances for phenomenal success. Money doesn’t even have to come entirely from your pocket. Several agencies offer loans for commercial real estate.
Before you dive into your new business venture, though, make sure that you have done your research.
Fortune Builders, a premier real estate investment education company, runs down a list of some things you need to know when starting a vacation rental business. We’ve established early on the importance of location in buying a property, and Fortune Builders mentions it as the number one consideration.
For beachfront properties, water is your main selling point. But it is also beneficial if you take into account the attractions nearby. These spots can add value to your property and give more reasons for future tenants to visit or even stay long-term in your place.
Research is also important to know your competition in the area.
A scan of current rental prices around your chosen area will give you a proper basis on how to charge for rent for your property. It is also ideal to set your rental to at least 10-20% higher than your expected monthly expenses. Correct pricing is vital if you wish to earn profit from your vacation rental.
It is also important to note that most people would probably want to rent it out during the summer since it is a beachfront property. However, there are ways to market it for the off-season, such as giving discounts for longer stays.
Banking in on the spirit of holidays is also a good option. Christmas and New Year may be a bit chilly, though, so you also have to ensure that your rental’s insulation and heating units are well-maintained. A nice hot tub or a heated indoor pool will be a good substitute for the cold ocean water during winter.
Waterfront living will certainly have its consequences, but these consequences are easily minimized as long as you have been equipped with proper knowledge of managing it. Also, these consequences seem minute if you compare them to tons of benefits you can gain from owning a beachfront property.