What You Need To Know About Ocean Front Properties

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What You Need To Know About Ocean Front
Properties
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According to the leading real estate agents, one
of the finest rental properties that you can own
is ocean front properties what with the fact
that apart from there being only a limited
supply, ocean front properties are also extremely
desirable and marketable. You may already know
who people love to visit the ocean front and
because there are restrictions in many coastal
towns regarding the development of homes along
the beaches, this only adds to the scarcity of
this line of luxury real estate. However, there
are a few other important facts about ocean front
properties that you need to know about before you
join the bandwagon.
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Profitability If you are going to make a good
profit with rental homes for sale, you should
ensure that the monthly rent will be at least 2
of the purchase price. This means that if you
bought your property for 1,000,000 the rent
should be something like 20,000 monthly. Even
though you can still make profits with rents that
are lower than that, you can be sure that in most
coastal cities you will not manage to do anything
even with a 1 rental threshold for ocean front
properties.
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With this kind of information you need to look
for a different strategy so you can easily turn
your investment to profitability if you are not
going to be able to hold on to a property with a
negative cash flow as you anticipate its
appreciation.        
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Between vacation and residential Another way of
getting a return on investment with ocean front
properties is to make them available for short
term vacation rentals as opposed to the
traditional residential rental. Ask the best real
estate agents and they will tell you that you are
likely to make more money with short-term
rentals however, you or your realtor will need
to work slightly harder to keep the property
rented even as tenants come and go after a short
while. On the other hand you will need to plan to
provide furniture, utility services and in most
cases lines for your short-term tenants.
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Management issues It doesnt matter what kind of
rental arrangement you will be taking up ocean
front properties have their own unique management
issues.  Every property that is located next to
the sea has to deal with elements such as sand
and air that is loaded with some amount of salt
water. You will see evidence of this in terms of
corroded metal on the roof flashing or the AC
units, a lower paint life or even a reduced
carpet life as a result of that sand that will be
tracked in to the property you should also be
aware of the risks associated with water surges
as a result of storms and earthquakes.  
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Personal use concerns For those who wish to own
luxury properties they should realize that
personal use can be limited if they want to take
advantage of tax benefits then you spend more
than 14 days in the house or more than 10 of the
time it is available for rental throughout the
year you wont benefit from a passive activity
write off.
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Posh Properties - Realtors 107 Northeast 2nd
Avenue, Delray Beach, FL 33444 [phone]
http//www.poshflorida.com