Buying Beachside ... Good Idea?
It’s summer. You’re on the beach. Feeling great lying on the sand after taking a dip. You start dreaming about having a place on the beach. And then you think, why can’t I? What will it take? Before you dive in, I encourage you to do your homework.
Buying beachside close to capital cities is the most preferable. You are close to jobs, established infrastructure. It keeps the market appeal broad. You tap into the city folk and the travellers if you Airbnb/holiday rent. You also have the run-off from the growth on the city.
What is your main reason for buying beachside? For now, for later, for holiday, for home, for family, for retirement? Be really clear here, because it may mean you have more options than you think.
Beachside property performs well when the market is experiencing exceptional growth. However, the flipside is when the market is on a down cycle, beachside properties struggle. They are hard to sell. They lose their shine, as people bypass luxury/indulgence and go back to basics. So you lose a lot of people out of the market, if in the event you need to sell.
If you are buying to use as a holiday rental. They do come with high management costs and also high vacancy rates. You are also competing with a much bigger market with Airbnb in the mix. Therefore you really need to think about the proposition before you buy the property.
Twenty years from now you think you would like to retire near the beach. Sounds beautiful. But things change. Life changes. Don’t put all the eggs in a dream that’s years away. You can still have the dream but invest in the lead up, and this may help you to achieve a bigger house near a better beach.
Rising sea levels, as we have seen, cannot be ignored. How close are you buying to the beach? That’s one thing we cannot control is nature. So do your due diligence. Collaroy experienced this first hand.
Cultural preference for ocean, river, lake is also something to consider. You may take a whole market out of the picture based on the water body type and the location, whether it’s at the front or back of the house.
If you have a desire for beachside living, think laterally. They are so many ways you can approach this – all achieving the same outcome – but putting you in a better place financially and with a lot less risk. You want to catch the right wave for you… bringing you nicely into the shore.