Photo credit: Sunset in Manila via photopin (license)
A coastal home can be a truly life-enhancing investment. What better way to reward yourself for all that you do than with the acquisition of a seaside property?
Even if the intention is that the property will be rented out, the right property can still provide a useful asset for entertaining friends and family on vacation.
Do Research the Market Thoroughly
The internet contains all the information you need to ensure your dream purchase goes smoothly. Use it to thoroughly research current and future market trends, both locally and nationally.
Testing the appeal of an area with a short stay can be worthwhile. Zipmatch is such an internet portal for the real estate market in the Philippines where you can conveniently find hundreds of property listings, many of which are located in the coastal regions.
Do Build Versatility into your Plan
When choosing a coastal property, look for one which gives you plenty of options. If there is a possibility you might need to liquidate the asset quickly at some future point, consider only buildings which are in prime condition.
This setup should enable you to move them on quickly. Assess the potential to divide the building into smaller units, either permanently or on an adhoc basis. They may then be rented separately to different groups, or together to one large extended family.
Where possible, choose a property that can be marketed both as a short-term let in the holiday season and a longer term rental option outside this period if required. Finally, always choose a place where you yourself would like to stay. This gives you an upside even during those difficult void periods.
Don’t Neglect your Due Diligence
Research your intended location thoroughly. Check if the seafront has the restaurants and nightlife that are likely to appeal to your intended clientele. Talk to neighbors about the pros and cons they encounter with the location.
Check the current planning applications and investigate any developments which may affect sea view.
Do be Honest about Your Finances
There is little fun to be realized from owning a coastal property if it starts to drain your finances. Be realistic about the likely income and maintenance costs.
Budget for the worst case scenario. Should a long rental void coincide with a large maintenance bill, how will you cope? Be honest with your figures; making a mistake on paper now may mean an uncomfortable, unhappy and expensive experience further down the road.
Also remember that when buying coastal real estate, Philippines or other developing countries sometimes offer cheaper options.
Don’t Forget to Protect Yourself
If the property will be let out to third parties, it is important that you have everything covered. Make sure your insurance and mortgage companies have the correct details about yourself and the property.
Thoroughly check the documentation when you receive it. Ensure that all building and maintenance work is done to code by qualified professionals, no less. Retain all necessary receipts and warranties.
As with any rental property, a full electrical safety inspection should be carried out prior to letting it for the first time.
Although we recognize that some of the above may sound a little daunting, the most important tip of all is to enjoy the experience of purchasing and owning your new coastal home.
