Home Is Where The Beach Is
The first law of economics we learned in school is that when something in demand is scarce, it automatically becomes more valuable. This axiom is particularly evident in the Singapore real estate market the past few years. Given that there are limited beaches in the world and good demand, it's no wonder that quality beachfront properties have been steadily appreciating.
The great view of the ocean, the gentle sea breeze, the fantastic sunset, it's relatively easy to give in to impulse and jump into buying your very own beach home. Remember though, if you want to reap returns from your asset, investing in waterfront real estate requires common sense and due diligence, just like any other investment. Consider these points to ensure that your investment will be an income-generating one:
Condition of the House
Beachfront houses are exposed to unique weather conditions. Hence, it would be wise to factor in the cost of maintenance the house would require. It’s best to take a home inspector with you so that you can find out which things you should be concerned about and which ones you can still repair easily.
View
Does the home have unobstructed views of the beach and ocean? If it photographs beautifully, it would be easier to market the house for rental. Also ensure that there are no major development projects in the pipeline to ensure the view remains unobstructed for as long as possible.
Distance from the Beach
How long will it take your guests to reach the beach from your home? This will be the first question asked by a potential renter.
Amenities and Attractions
Is it near the supermarket and restaurants? Are there easily accessible gyms and swimming pools? Yes, the house may be by the beach, but there are those who prefer swimming in a pool and reserve the beach for playing frisbee with their dogs. And for those with family, are there family attractions nearby?
Forces of Nature
Erosion is a serious problem for beachfront owners because it affects the structural integrity of the house. To be safe, you may consider choosing a property located about two or three blocks away from the water to make sure you won't lose your house to changing shoreline. It would also be wise to buy a property which has a lot of foliage in the surrounding areas to help prevent soil erosion. Other natural forces that can wreck havoc to your home would be major storms like hurricanes and typhoons, tidal waves, earthquakes and tornadoes.
Rental Market
If a prospective home was previously rented out, be sure to inquire on previous years’ figures. Check around for the rental rates of the surrounding properties to determine competitiveness.
Shop Around
Don't buy land without setting foot on it first and don't limit your search to a single waterfront development, no matter how smitten you are with it.
Background Check and History
Talk to the neighbours and real estate agents to see if there is anything about the area that you need to know.
