Why Your Beachfront Property May Someday Devaluate
- Author Jonathan Smith
- Published May 25, 2010
- Word count 563
A lot of people have a dream of retiring to a home in a beachfront area. Who wouldn't want to be greeted every day with a beautiful sunrise and the breeze coming from the beach and to retire in the evening after watching the beautiful sunset? Beachfront properties like those in prime locations such as La Jolla, California are so in demand that people snap them up to build their dream beach house on or to build a rental property so that they can enjoy some passive income to add to their retirement fund.
Of course, many property owners are always wondering about property devaluation and how the property they have would not yield them a good sale in the future. There are a few factors that may contribute to this if you are looking into purchasing a beachfront property.
If it's a beachfront property you're looking at in a resort community such as La Jolla, for example, it's important to determine the structural integrity of the home you want to purchase. If it's several years old, you should know that it may need extensive renovation or repair on top of the more expensive maintenance you'll have to do on a regular basis. If you're not familiar with what things to look at in a beachfront home, take a professional with you when you go to look at a house. Maybe a friend who is an expert at plumbing systems, electrical systems, and other related thigns. It's best to not just look at the property based on its monetary value but also on what it would cost you to repair and maintain it.
Beachfront properties fare better if there trees, bushes and other plants around the area. If the beachfront property that you're looking at sits in a location where there are more structures than trees, then you may be looking at a place where soil erosion would be a lot worse in the future. Investing on it may look great now but the lack of foliage would eventually take its toll on the property. It's not just your own backyard that you need to think of but also surrounding properties. Generally, if the beachfront property that you have is in a location with a lot of trees planted in it, it may stave off devaluation that is caused by a high rate or land erosion in the future.
Educate yourself about what kind of building regulations are enforced in the property that you want to build your beach house in. You've probably heard this a million times before, but real estate is really mainly about "location, location, location". However, if you buy a beachfront property in a zone where people are allowed to build structures that would tower high above yours, the view that you're enjoying now may not be something you will be enjoying in the near future. Research this before you buy a beachfront property to make sure you keep your view.
Do your own research and talk to the people who live around the area. Do a survey on the internet on how much houses were worth in that location several years ago and compare it to how much they are worth now. Look at the trend. Being smart with your purchase takes a lot of effort but it's going to be all worth it in the long run.
Jonathan Smith is a freelance writer who writes about real estate and other similar topics. See La Jolla homes for sale and La Jolla real estate quality listings from our site.
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