Well, today we tackle the age-old question of whether beachfront property is always a good investment.
First off, I want to clarify the difference between “beachfront” property and “island” property because there actually is a difference.
Besides sounding more exotic, “island” property has a more substantial feel to it than simply “beachfront” property that has the perception of possibly floating away or being hit head on by a massive tidal wave or something. Thoughts of California falling into the ocean come to mind when I think of those high cliffs and “beach front”.
On the other hand, “island” property (depending on the size of the island, of course) has a more perceived stability factor over the long term. In my opinion, beach front property is for vacation and island property is for living, simple as that. And living is more valuable to invest in than the hopes of multiple beach vacations.
However, with that said, beachfront property is HOT! Maybe too hot.
Everyone knows that prices are typically inflated and supposedly never go down, but that seems not to be the case these days. There are many rental signs on the homes as you walk along coastal beaches. And word on the street is that prices are lowering a bit when it comes to investors that were just buying to “flip and profit” and are now stuck holding the bag.
European investors are taking advantage of the soft dollar and cherry picking the best beach properties, but they are not buying up everything and seem to be looking toward “island” property which appears to be more stable.
One thing that these two types of real estate do have in common, is the fact that there is a limited supply of each, island property and beachfront property, which has always been its appeal to investors.
Low supply + high demand = Cash in the bank
Hmmm… what do you think?
Have a great Halloween weekend!
Rob and Sandy
p.s. Don’t forget to make your way over to our main website for all of your Sanibel and Captiva Island Real Estate needs. See you soon!
