Buying Waterfront Property: The Property Investors Guide
Ride The Wave Of A Booming Real Estate Market With Help From Waterfront Estate!
Have you been contemplating the thought of tapping into one of the greatest real estate investment opportunities currently on the market by purchasing a property on the waterfront but don’t know where to start? You’ve come to the right place.
Waterfront Estate specialises in this type of property, allowing you to reap the rewards of Southeast Queensland’s hottest real estate opportunities. Whether you’re interested in flipping properties, buy-to-let ventures, or any other feature doesn’t matter. With our comprehensive guidance, those real estate investments have never looked brighter!
The Ideal Time To Buy Is…Now!
Timing is an integral aspect for any real estate investment, irrespective of where the property is located or what you plan to do with it. Right now, the local Queensland marketplace has created the perfect environment for investors, not least those looking at waterfront properties.
Though some property prices have taken a minor hit throughout Australia’s major cities, across the board this is not the case, and certainly not for waterfront properties. Forecasts suggest that looking into the early parts of next year, the growth should be quite significant, meaning prices will rise over following years even more. This in itself is a promising factor for any prospective investors.
Perhaps more importantly, though, the reason for the current marketplace is due to stricter lending. While the banks are making it harder for homeowners to make their dreams come true, which can force many first-time buyers into renting a little longer, this is great news for investors. It also reduces the competition, so that real estate investors looking to sell surrender a lot of bargaining power to buyers like you.
Those sentiments are true across all property types but are particularly pertinent for waterfront properties, especially detached homes. So, if you’re aiming to capitalise on this market, now is the perfect opportunity for the immediate and long-term returns.
Why Choose Waterfront Properties?
While there are many issues to consider ahead of any real estate investment, choosing the right type of property is undoubtedly one of the most important elements. Waterfront properties are easily among the most attractive prospects for homeowners and investors alike.
First and foremost, living by the water can encourage a far happier way of life. The views are often stunning and the opportunity to break free from the rat race of modern life and enjoy the simple pleasures of nature is truly incredible. So, if you’re living in the property, that’s great; if you’re an investor, it means that the appeal and demand will be very high too, especially among renters who cannot borrow the funds needed to buy their properties outright.
Waterfront properties tend to carry good interior design choices too, although there’s still the opportunity to provide a little TLC to older properties.. Given their appeal and place in the market, they are also very likely to reap the rewards of any future growth in the market.
It’s also worth noting that waterfront properties provide a wealth of options. This versatility is ideal for first-time investors and prospective homeowners alike. Aside from the variety of residential property types (apartments, houses, etc.), you may want to consider commercial investments, particularly on busy waterfronts. From convenience stores to restaurants, there’s a lot of money to be made from this route as an investor.
This sense of versatility extends to the waterfront type. Living in a property (or renting it out) by the beach is different from living in one by a lake or harbour. Once again, this is a crucial element that can impact everything from the current price to future prospects.
On the one hand, it can seem like a lot of information to absorb. On the other hand, though, this provides an unrivalled opportunity to thrive as an investor. With Waterfront Estate by your side, that will suddenly seem more likely than ever.
Not All Waterfront Properties Are Identical
When searching for waterfront properties, you must also accept that no two properties are identical. Like any other property, you’ll need to consider the size and shape of the home. Furthermore, you should always prioritise properties with as much flat-levelled area as possible.
As with other types of real estate, you may wish to consider varying strategies. A property that requires a lot of work will naturally cost less and require further investments of time and money. When handled well, though, this can be the perfect way to unlock some truly stunning ROIs.
It’s not all about the property itself either. The type of waterbody that it sits on will naturally have a huge impact on the lifestyle as well as the value. Similarly, even being half a kilometer up the road in a different suburb or district of a city can have a telling impact on the current price as well as the future prospects.
There are a lot of things to consider, and our team of professionals can provide the expertise to support you throughout. Still, here are some ideas that should get your creative juices flowing:
- The best position on the water is always North East for the summer as winds coming from the North / North East direction provide are 3 to 4 degrees cooler.
- Greater frontage on the water is deemed to be better as it allows for more substantial boat moorings.
- Island blocks are the best as they offer larger homes and privacy.
- There is money to be made when it comes to the older homes, as you can knock them down and build as the purchase price is closer to land value.
- You can always create a wonderful garden decking pool to create the lifestyle dream.
- East facing blocks are excellent due to morning sun and afternoon shade.
- Main flow of canals are always a great position as it is easy to gain access to the boat and open ocean and rivers.
Only Fools Rush In
When a property ticks all the boxes regarding location, size, and style, it can be tempting to jump straight in at the deep end. Unfortunately, ignoring the need to take the necessary precautions could backfire spectacularly. Worse still, it can be very difficult to repair the damage caused by falling into the pitfalls of investing in the wrong property.
The waterfront real estate market requires even greater due diligence than most. To be sure that your chosen investment is the right one, you should complete each of the following steps:
Inspect the property:
Living by the water is excellent for a person’s lifestyle and happiness. Sadly, it might not always be great news for the property. Several problems can be attributed to living by the water, ranging from corrosion caused by salt air to mold caused by the increased moisture levels. Meanwhile, water leaking into the property can be another common problematic feature that could be very costly indeed.
Property surveys, elevation certification, and water testing are all key ingredients that will put your mind at ease. In some cases, it could potentially save you from entering a nightmare.
Consider hidden costs:
Aside from the additional fees you’d expect to encounter with any property purchase, waterfront investments could be hit with a host of other expenses. Sewage, dock fees, and maintenance costs can all bump up the overall expense of your investment. Likewise, being located close to the sea is likely to bump up your insurance premiums due to the increased threat of floods and climate-related damage.
Whether you intend to become a landlord, a property developer, or a house flipper isn’t important. Taking the full financial costs into account is crucial.
Check the area:
When investing in a property, you invest in a neighbourhood and the local surroundings. This is apparent when working with waterfront properties, which is why you must analyse the area. It may be possible to see the nearby waterbody from the house, but you must consider how long it takes to reach it. Depending on the type of waterfront, you’ll want to consider noise pollution and other sources of potential grievances.
On a similar note, you want to check that the area is maintained. While you can landscape the backyard, there’s nothing you can do about unattractive public areas.
Know the shoreline:
In addition to understanding how the surrounding area looks today, you’ll want to think about how it’ll appear tomorrow. A little research into the history and future of the shoreline will allow you to see if any major changes have occurred or whether any are likely to happen in the future. The land can undergo colossal metamorphisms when water and dirt mix. If the moving water lines leave you without a property, you’ll be left with nothing or a huge bill to restore it.
Even with the right insurances in place, it would destroy any financial gains from your investment. So, it’s vital that you conduct the necessary research in advance.
While taking the responsibility to check each of the above features, our experts at Waterfront Estate are more than happy to provide a helping hand throughout the property screening process.
Negotiations Are Vital
While the waterfront property is probably a fine investment for the long-term, the seller will be aware of the current trend. As such, they will almost certainly want a swift negotiation before losing any more money due to any temporary fall in prices. This gives you the high ground in any negotiations, and you must be ready to take it.
If you’re prepared to look around, there are a number of waterfront properties on the market. So, don’t feel forced into rushing a purchase on the first one you see. Even if it’s only a ten grand saving, it’ll provide an immediate boost for your investment.
The last thing any investor should do is enter the market blindly, and any information you can gather during the crucial preparation phase will serve you well. Here are some additional items that you need to consider:
Financing can take longer:
Obviously buying a waterfront property is that it will be more expensive than a landlocked one. Moreover, many lenders will view any financial agreement as a speciality loan, even when you are purchasing the property for investment activities.
This can extend the tie needed to underwrite the loan agreement, which may delay the process slightly. When buying from someone that is using the sale to fund their next purchase, the delays can prove to be problematic.
Renovations can be restricted:
Local home improvement and construction regulations aren’t as strict as some areas, but you must respect those laws, not least because the rules can be a little tighter when dealing with waterfront properties.
If you’re planning to build a new dock or remove vegetation to enhance the views, it’s imperative that the local authorities allow you to do this. Ask questions relating to those issues before confirming any purchase. Or else, you could open the door to a nightmare.