If you have ever considered a Beach house as a second home or vacation rental home now is the time to buy. After January and in February or after, everyone else is starting to think spring - now is the time for you to get a jump on the process. Now, before all your competition gets up and running to start the annual bidding war. This Past Year Some Home Prices Increased Over 60%. The vacation home market is on track to do it again this next year. Interest rates are still relatively low you can get 100% financing on your vacation home or rental home. The following year may be a different story. Limited Supply and Getting Smaller. Real estate in general has a finite supply. In areas that people want to live the limited supply is more evident and when it comes to the beach the supply is actually decreasing which we know drives up the price. Government regulations Federal, State, Counties, and local governments all have and continue to pass laws and land use regulations restricting our ability to use or build on beach and wetland areas. No argument as to whether it is good or bad its just a fact and prices reflect that. Beach Properties are not in the Bubble. Some areas have had a tremendous jump in pricing across the board where even small homes and fixer uppers are way above the standard family income. Washington DC area, Boston, and San Francisco are all said to be on the real estate bubble, we wont know if that is true until it bursts. Beach properties on the other hand are not where the average family lives, although they may rent for a week. Beach properties are investments true investments not like your home or residence. Vacation Rentals and Second Homes on the Beach. Individuals, families, corporations, and investment groups buy these properties because of the great appreciation they have shown over the years. Some years ago I passed on an opportunity to buy a duplex building (one of many being built at that time) one block from the beach for $50,000 it has seen steady appreciation and some years an absolutely fantastic appreciation. Today each of the units is valued at over $650,000 and growing. Timeshares and Partial Ownership or Fractional Ownership. Timeshares have been around for many years today the ownership is different you dont own a particular unit for 20 years and have use of that unit only during the week you purchased. Today you purchase a time share and use it when you want to also you can trade it for other units at any time around the world. There are owners who are selling fractional ownership of their private homes, villas, and condos. A 2 bedroom 2 bath condo is selling to 13 investors for $72,000 each for four weeks of staggered ownership. You have a week to use or rent each quarter. What a deal? Vacation Homes and Beach Rentals are a great investment with zero down mortgages and a great rental history or a very desirable area. You can almost not go wrong in todays marketplace. Go online check out some areas where you would like to be, make sure its an easy drive and easily accessible by the greatest number of people and you should do well with appreciation and rentals to cover your costs. It is the sleeper investment strategy that only those in the know uses while everyone else think its too expensive or cant possibly work for them. |
