Even though beachfront property is usually a great investment prospect, finding just the right parcel of land can prove tricky. On one hand, just buying land means less expense. Now you can build to your personal specifications. On the other, there may be reasons that the land has gone on the market that could affect future sales potential, not to mention your security and the way you design your new home.
With this in mind, step one in the journey toward owning waterfront land is finding out why the owner is selling it before development. Ocean front properties are a hot commodity and open land doesnt become available every day. If the market is soft, it may simply be that the owner didnt have development funds. However, there are other possible reasons that the land remains vacant. These reasons might include zoning laws (that would likewise apply to your plans for the land). What else might prohibit building? Endangered species (plant or animal), sinkholes, and erosion come immediately to mind. Dont sign any paperwork until you investigate thoroughly.
Utilities can also really hinder development. If you cant get easy access to water, sewer, gas or electric, the cost to install special alternatives can be incredibly prohibitive. What about cable or satellite too? Contrary to impression, satellite does not reach EVERYWHERE. Too many trees can block the signal, or if youre in a remote location you may simply be out of signal range.
A third problem that can easily happen with beachfront properties is that other landowners decide to develop near you, in ways that you might not like. Whether you want to live there or rent your space, having a super-store go up and block the otherwise pristine view isnt going to help your property values. Nor will a hotel. While its all but impossible to plan for every contingency, keep these possibilities in mind.
Fourth, make certain your real estate agent knows the laws governing investment property where you plan to buy. For example, if you plan on living in the home part of the year, you may find an ordinance limits how often you can be in the home if you rent regularly. Additionally, a good realtor can help you find likewise good tenants who will take care of the property when you cannot be there. All potential tenants should be properly screened, provided with the rules of the roost, and pay a suitable security deposit just in case.
Finally once you find a good piece of land and develop it, maintenance becomes a very important part of the equation. You have prime real estate here, and its worth keeping it in good condition. Keep the smoke alarms and fire extinguishers current. Take care of the lawn and grounds so it attracts return renters. Install security measures for those times when the house remains unoccupied. These are small, common sense things that support your success as a landlord.