How to buy the right beach house

There's one Australian tradition guaranteed to stand the test of time - the annual summer pilgrimage where Mum, Dad, the dog and 2.3 kids pile into the car and head for their favourite coastal spot.

After a week relaxing on your favourite beach, the idea of buying your own little piece of seaside paradise can prove very tempting.

You tell yourself it may prove to be a good investment too - and it can be, if you stick to the beach house buying guidelines!

 

FIND THE RIGHT LOCATION

 

The best performing beachside locations are within 2.5 hours drive of a major metropolitan area, particularly those with access to a major highway.

Look for small seaside towns in a region with a multi-faceted local economy, which provides a strong local rental market all year round.

Don't be tempted by areas with a lot of high rise development and fly in visitors. These locations can have large numbers of new units added to a small market in a short period of time which makes these properties vulnerable during a downturn.

 

PICK THE RIGHT BEACH

 

The right location needs the right beach to ensure it is a popular destination for all sorts of visitors.

Long swept beaches with clean breaking surf are always popular, but even better is a location which also has a protected swimming area for smaller children.

Prime beachside areas play host to a number of different past times, like surfing, sailing, scuba diving and boating, which attract high income visitors at different times of the year.

Don't forget night-time either - seaside towns with a smattering of good restaurants and at least one decent late night watering hole are favoured by families with grown up children and holidaying groups of young adults.

The further south you travel, the more important it is to ensure your beach spot is close to winter activities like craft markets, wineries and national parks.

 

PICK THE RIGHT PROPERTY

 

The best results for properties in seaside towns tend to be from houses, not apartments, especially properties about the same size as a standard suburban house.

Tiny beach huts and sprawling mansions often perform quite badly during cyclical downturns.

Start your search around the middle of the local price range and zero in on a 3 bedroom houses around ten minutes walk away from the township.

The best properties will be in a relatively quiet bush setting and have a generous balcony or outdoor entertaining area and plenty of storage for boats and water sports equipment in a lock up garage.

And of course it should be close to a favoured beach - no more than 20 minutes walk.

Once you've found a likely candidate, I'd recommend searching through back copies of the local newspaper, paying particular attention to past events like flooding or bush fires.

 

HAVE THE RIGHT TIME FRAME IN MIND

 

Properties in coastal resort towns usually have greater price volatility and lower capital growth than those in capital city markets.

If you invest your hard earned money into a seaside property, you may have to be quite patient to see good results, as anyone trying to sell a beach house during the GFC can testify.

But a smart buy in the right location can pay good long term dividends to the shrewd purchaser.

 

Posted by Reality Bytes - Real Estate Training Blog on 19/11/2014 at 12:45 PM | Categories:

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