Waterfront Property As Investment? 2018-08-24T07:38:55+10:00

Is Buying a Waterfront property a Good Investment?

When investing in property, there are few options more appealing and lucrative than waterfront homes. Whether you’re searching for a forever home, a holiday home or a house to rent out and generate an income, being close to the water can increase your chances of successful financial investment, as well as providing you with a host of additional lifestyle benefits. If you’re thinking about buying waterfront property, and you’re wondering whether it makes financial sense, here are some of the reasons why waterfront real estate outshines other options.

Why invest in waterfront real estate?

When looking at property as a financial investment, rather than a roof over your head or a place to call home, it’s always wise to consider the current value of the house or unit and its potential to become more valuable in the future.

You often hear real estate agents talking about property grades. Grades are closely related to investment opportunities, and looking out for grade A properties is likely to boost your portfolio profile and generate financial rewards. Also known as ‘Blue Chip’ properties, grade A homes are located on the water, and they are highly sought-after. The further away from the waterfront you travel, the lower the grade.

Other examples of Grade A properties include those located a stone’s throw from beaches and major CBDs. A Grade B property located 20-30 minutes’ drive from the water is still desirable, but if you can track down that show-stopping home on the water, you’re bound to profit in the long-term.

One of the most crucial considerations for investors is supply and demand. If you’re hoping to make money from putting a property portfolio together, or invest in a home you plan to sell in 10, 20 or 30 years’ time, it pays to ensure that there is demand out there for the type of property you buy. Demand for waterfront properties is high, and supply is low. This means that homes close to the water are always in demand. People are willing to pay a premium for views and proximity to the sea, canals, or rivers, and as demand is so high, it usually doesn’t take long to sell a waterfront property.

Homes on, or close to, the water tend to hold their value well, and as many bidders may be interested in the same property, it is possible to generate significant capital gains. Commonly, waterfront properties are located on a slice of real estate that is relatively small in comparison to other hot spots close to the city or in the heart of suburbia.

To secure a segment of that highly desirable slice, you not only have to wait for a property to become available, but you also must be prepared to match or even exceed the asking price. Competition is fierce, and as the owner of the property, you’ll always be in a strong position when it comes to selling.

Investing in real estate a hop, skip and jump away from the water also gives you the option to generate an income from leasing your home out if you don’t plan to live there on a permanent basis. If you’re looking for tenants or you plan to hire your home out during the summer months or for the holiday season, your property is likely to attract a lot of interest, and rental fees are likely to be substantial.

The perks of buying waterfront property

Many buyers look for a home that offers an alluring lifestyle, as well as beautiful interiors or a magnificent garden. Moving to a new house isn’t always about changing location due to a new job or a new addition to the family, or upgrading in terms of interior design or size. Many of us choose to move to pastures new to enjoy a new lifestyle and find a way of living that provides us with a sense of wellbeing.

A new and improved lifestyle

Waterfront properties are desirable, not just because they usually offer stunning views, but also because they provide lifestyle benefits.

When you live by the water, you can enjoy greater privacy, with no neighbours over your back fence, and you can embrace and enjoy pursuits and hobbies like boating, fishing and swimming.

Communities on the water often have clubs and societies linked to water-based activities, so it’s easy to make friends and become involved and integrated, and being on the water can also be incredibly therapeutic. If you’re used to bustling city streets or suburban roads filled with school and commuter traffic, the idea of sitting in your back garden watching the water rippling and the sun setting in total tranquility couldn’t be more appealing.

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The pace of life is more languid, you can enjoy spending time outdoors with a beautiful backdrop for company, and you can get to know the neighbours by hosting barbecues or gatherings in the garden. If you enjoy activities such as water sports, fishing, kayaking or rowing, you can also indulge your hobbies and interests on a regular basis with minimal hassle. You don’t have to schedule trips or days out weeks or months in advance. You can just take your boat out or grab your kayak from the garage whenever you have a little spare time.

Occupying a slice of waterfront real estate offers easy access to the great outdoors and tight-knit communities, but it also gives you a chance to focus on healthy living and finding a balance that is better for your health, your wellbeing and the relationships you have with friends and family.

When you buy a home close to ocean waves or tranquil lakes, you don’t just make a financial investment. You also invest in a better quality of life for you and your family. The air is cleaner and purer, the pace of life is more sedate, and stress seems to melt away.

Access to amenities

Newer communities on the water tend to be affluent, and if you buy in an area popular with tourists or visitors, there’s usually excellent amenities within easy reach. You’ll also find that waterfront properties in sought-after areas have access to shops, restaurants and bars, sports and wellness facilities and schools that boast an excellent reputation.

Keeping cool

Another benefit of living by the water is the cooling breeze, which will sweep through your home on a hot day. As the wind bounces off the water, you can enjoy a natural alternative to air conditioning free of charge. Although many of us enjoy the sun-drenched days of summer, there’s nothing more refreshing than a cool breeze, and movement in the air makes the weather much more tolerable when the mercury rises.

Community spirit and social opportunities

Seaside and waterfront towns often ooze a relaxed vibe, and there’s a perennial sense of optimism and warmth in the air. People who live by the water feel like they’re on holiday even when they’re not, and communities tend to be very sociable. As a newcomer in this environment, it’s not difficult to meet the neighbours or get involved in community events or activities. People tend to enjoy celebrating and spending time together, and there’s a strong sense of spirit.

Is buying waterfront property a good investment?

When you buy property, it’s always wise to consider the bricks and mortar in front of you as an investment. Even when you’re focused on finding a home, rather than a nest-egg to boost your income, it pays to be aware of what buyers are looking for, and what kinds of property perform best in the market. A waterfront property is almost always a good investment since this kind of real estate is in high demand. There are very few properties available, and myriad buyers that want a slice of life on the water. This means that whenever real estate close to the water becomes available, there is going to be a lot of interest. Interest and competition increase prices, and you’ll always profit when demand outstrips supply. Being on the water is also beneficial for those looking to make money from leasing their homes or offering them as a base for holidays and short breaks.

Buying waterfront property makes financial sense, but it also offers buyers the chance to invest in a new way of life. Living on the water is relaxing and enriching, and it may enable you to spend more quality time together as a family. What could be better than having friends over for a barbeque, or planning a trip out on the boat on a sunny afternoon?

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If you’re thinking about buying your first waterfront property, look around, organise some viewings and be ready to move quickly. The lure of the water means that homes with a view often sell in the blink of an eye.

Get in touch with us today. Our years of expertise can help get you on the right track, faster.

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