Many people consider investing in coastal towns to be another great area to investing in, usually whilst they are on holiday there, relaxing and enjoying themselves. Remember, many coastal towns attract seasonal visitors, meaning there may be long periods outside of the peak times when an investment property could be without a tenant.
If you’d love to own an investment property in a beach area, do so for the joy of having a beach house. Understand that you may not rent the home 100% of the time if that is what you wish to do. If you are thinking of using the home as your holiday home for some of the time and renting it out as holiday accommodation when you’re not staying there, make sure that you check the tax implications when claiming deductions with the tax man, to make sure you only claim what you are entitled to.
If you do decide to purchase and rent out a coastal property, some experts do suggest renting it out at a higher price during peak seasons when tourists flock in the area. If you eventually opt to make it your retirement home, you’ll have a nice coastal asset.
Rural Areas
Communities where mining companies operate can also be good areas to invest, but be aware of your appetite for risk and understand that there can be peaks and troughs in the market, often for years at a time. Many areas have become popular investment hotspots that continue to attract investors despite the increasing property prices, mostly because rental returns have also risen as tenants move into towns that boom during mining peaks.
The flip side is that these towns can also experience downturns, where prices will drop as owners look to exit, as will rents as landlords look to secure tenants. This can lead to a downward spiral in the price of both the property itself and the rent it will attract.
A far better inventment are towns that offer a range of infrastructure and sources of income, such as from farming, agriculture, tourism and fishing, as well as mining. Such towns are less volitile and not purely dependent on the mining industry.
When considering an investment area, make sure to determine the pros and cons first.
Do your research, plan well and enjoy your investing journey.
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By Wendy Chamberlain
Copyright 2017 | All Rights Reserved
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With a passion for all things real estate spanning 18 years, Wendy loves that her role as a Buyers Advocate gives her buyers an experienced voice they can trust when it comes to negotiating to purchase something as important as their new home or investment. Wendy considers it a privilege to be asked to help others realise such an important goal as home ownership and to be trusted with that honour. Get in touch today via www.FollowWendy.com for a no obligation chat about how Wendy can work with you and help you save time and money to secure your new home sooner.
