Why investing on the beach should be your next move
Buying an investment property close to the water can be beneficial for a number of reasons, least of all the picturesque coastlines on the east coast of Australia.
If you are thinking about making a move to add a beachfront property to your portfolio, then a buyer’s agent from Cohen Handler could be the best option for you. The Real Estate Institute of Victoria (REIV) reported that the most expensive house sold in the regional areas of the state was fronted by the beach.
In terms of resale value, and what some consider to be rarefied air, a property close to the beach could be a fantastic way for you to invest and grow your portfolio.
Sights of the sea add value
When an investment property is being considered, one of the most significant factors is the potential for growth. The sights and sounds of the ocean make for a great boost to a property’s value, as data from CoreLogic shows.
Having open spaces over the ocean may be a defining factor in future growth potential.
Located virtually in the city centre, the median value for a house in the suburb of Darling Point is $5,820,051. Staggeringly, that figure puts it only third on the list of most expensive suburbs in Australia, but the entire top seven are in New South Wales’ capital city. In December 2014 however, Darling Point was listed as having a median house price of just over $4.8 million, according to Smart Property Investor (SPI). The growth is there, right on the coast, in full view of the ocean.
One suburb east of Darling Point is Point Piper, which comes in at second on CoreLogic’s list with a median value of $5,898,542. SPI listed Point Piper as having a median value of just under $5.8 million in December 2014, which shows that while there is growth in the area, it is not as strong as its westerly counterpart.
Two of Sydney’s top three most expensive (and growing) suburbs are located right on the coastline, and as the city continues to develop, having the certainty of open spaces over the ocean on at least one side of your property may just be a defining factor in future growth potential.
Growth by the ocean not reserved to cities
The strength of having a seaside property for growth is backed up by the fact that more regional areas of the country have expensive real estate growing, and being sold, that are close to the water.
The village of Fairhaven, located just south of Geelong, saw the state’s most expensive regional property transaction for 2015, according to REIV. The three-bedroom home reportedly sold for $3 million and has beach access. The deal was completed a mere three weeks after listing. Further north towards Geelong is the region of Torquay, which saw the second most expensive real estate sale at a little over $2 million. The house was within walking distance to Whites Beach, another ocean connection for growing properties.
Geelong itself has a median house price of $577,500, and last year saw a deal completed on the Eastern Beach Road amounting to $1.86 million. Significantly more than the median, this was among many that dominated the regional property deals for last year and they were all located close to, if not overlooking, the ocean.
Beach properties are more than just great investments
Houses purchased as investments are not only great for adding value to an existing or new portfolio, but are not subject to the same sorts of market changes that stocks and shares are either. Where a property near the ocean is different to a standard investment however, is how much more desirable it is to reside there yourself.
Investments could well end up paying for themselves with rental payments and reselling on the cards, but if you purchase a property that really stands out and includes some of the most beautiful views in the world, why not live there yourself? Even as a holiday house for certain parts of the year, investing in a seaside property has many benefits.
According to Dr Thomas Ferkol, people who live by the ocean experience better health because they are generally more active, and people who swim in the ocean even more so. Inhaling small quantities of sea air will open up your airways and allow you to breathe easy when thinking about your investment decisions.
When deciding on an investment property, employing the help of a buyer’s agent is a major key to making sure you are successful.
Experts in the areas of transacting and closing deals, the agent can take all of your requirements and find the perfect piece of real estate to match. If you are looking for a growing suburb or just picturesque views, or both, then Cohen Handler can give you the right advice.