Have you ever dreamed of living beside the beach and making every day feels like a vacation? Much better if you live in a condo on the beach where you can also let other people rent and earn money from it. Now that more jobs are available in work-from-home setup, sometimes it is ideal to live on a beach where you can be far from the busy streets in the city.
You may find the idea of condo investing and owning a small vacation spot appealing, as well as the potential additional source of income from rent. It may seem like the ideal investment because you only have to make a single payment, and then you start to receive returns. But of course, questions are still in mind when purchasing one. Is buying a condo on the beach worthwhile? Especially given the pandemic, the struggling economy, and the downturn in tourism. What if you own property close to the coast and are concerned about the risks of natural disasters? Will the sea level rise and climate change eventually be profitable?
The Philippines has over 7,100 islands, so there will likely always be condos on the beach available to discerning buyers. However, beachfront properties have a few disadvantages compared to typical, landlocked properties. Before purchasing a condo on the beach, buyers should consider many factors.
Beachfront property is the ultimate prize in real estate. These homes enjoy a premium not enjoyed by comparable landlocked homes because of the view they provide and the proximity to water. Therefore, be prepared to pay more if you want a condo in Boracay that is particularly close to Boracay's fine sand.
But in addition to price, there are other factors to consider when purchasing a beachfront home. Whether the property will do well in the vacation rental market depends significantly on the local and national economies. Houses built on the water are more expensive to maintain, insure, and repair because they are also more vulnerable to the elements.
Here are some factors, according to Lamudi, that you should take note of:
Natural Calamities
When investing in a condo, usually, you would expect to invest in a property that will last long. However, for real estate nearby the coast, you should expect the risk of your property not to last long because of natural calamities.
The Philippines is prone to typhoons and natural disasters. To ensure that your beachfront home can withstand winds from even the strongest typhoons, Lamudi suggested researching information on local and federal building codes.
Know the Extent of Your Ownership
One of your responsibilities as a buyer is to know the extent you can only own your property. It is essential to take note that the state of the Philippines owns all beaches. To possess and control the beach from the high to the low tide mark, you must obtain a Foreshore Lease from the Philippine government if you plan to purchase a beachfront home. However, you are not permitted to build a permanent structure within 30 meters of the high tide mark under the terms of this foreshore lease.
Consider the market if it is rentable.
When choosing a location, especially near the beach, you should choose a rentable place. Particularly for people who have work and families who have children in school. Most would still want to have a life in the city and wish the beach condo to serve as a vacation home. With that, you can have your place rented on sites like Airbnb. In this way, you get to earn while you are living in the city.
This is an excellent opportunity to have a passive income and earn in your investment. There are several ways to do that, especially now that people are more interested in renting Airbnb since it is cheaper than booking hotels.
Accessibility
The fourth factor that Lamudi mentioned is accessibility. It would help to consider how accessible it is to the public market, transportation, food restaurants, etc. Most probably, renters who are visiting beaches would choose a hotel or rent an Airbnb where they can easily access their needs all time. It is also much better if it is nearby airports so your place can be easily seen.
This is also beneficial for you as the owner since this property is an investment and can be your home for an unforgettable vacation. You should always make convenience part of your top priorities. After all, condominiums are there to provide convenience and an ideal lifestyle.
Maintenance cost
As was mentioned earlier, investing in a condo near the beach is much more expensive, and part of the reason is its maintenance cost. There may be additional expenses that you weren't expecting, depending on the area. If you're purchasing in a rural area, you should anticipate that there won't be a functioning septic system, paved roads, or easy access to utilities. This implies that you will have to pay more if you need any of these.
Therefore, purchasing a beachfront residence from an established leisure project makes more sense. Many such projects are available for you to choose from, and the Philippines is a tropical nation. Even though the cost of the property may be higher, you won't have to worry about things like road paving.
Whether a property on a beachfront or in the city, it is always important to do your research before putting your money out. One of the most common mistakes of first-time property buyers is not researching enough their property developer and the location of their chosen real estate. That's why investing in real estate already known in the market and has several condominium projects in the country like Vista Residences is essential.
For more information on Vista Residences, email info@vistaresidences.com.ph, follow @VistaResidencesOfficial on Facebook, Twitter, Instagram, and YouTube, or call the Marketing Office at 0999 886 4262 / 0917 582 5167.
