Many people dream of a house on the beach. Whether you think of it as a retirement home or a potential source of rental income, beachfront real estate is a wise way to invest your money for the future.
Personal interests may influence your choice of location, including distance from your primary home and your relatives. Your budget will also dictate where you can afford to purchase a property. But if you plan carefully and manage the property well, you can often make at least enough in rental fees in a short period of time to cover your initial investment.
Here is a list of ten places in the United States and abroad which look like the best real estate investments for 2019.
1. South Padre Island, Texas
If you are looking to spend under $300,000, you can find some nice rental properties on the Gulf of Mexico, like Texas’ San Pedro Island. Close to the Mexican border, this spot is popular with families and spring breakers, so you can be assured of a nice income stream from renters.
As with all second homes, ask yourself the four questions you need to know before investing in real estate:
- Is the neighborhood nice?
- Is the house in good condition?
- Do you have the financing in place?
- What will your return on investment be?
2. Myrtle Beach, South Carolina
Myrtle Beach has been a hot property for second homes and retirees for a while now, popular for its nice weather and low taxes. This area offers the same advantages as nearby Hilton Head—namely, top-notch golf courses and waterfront homes—at a less costly price.
Prices continue to rise, so both mortgages and construction loans are good investments. You will make your money back on a fixer-upper over time—so long as you do, in fact, fix it up.
3. Heron Bay, Florida
There are many areas in Florida which are great possibilities for real estate investment. While Miami and Boca Raton are known for high-end luxury condos, you can also find some less competitive markets with properties on the water in those cities’ outlying suburbs.
Check out these selections for attractive gated communities, beautiful views, and great rental potential.
4. Kuawi, Hawaii
Although prices for waterfront in the state of Hawaii are higher than in other states, real estate in this region is always a smart investment if you can afford it. As a luxury destination, few locales in the United States can rival Hawaii’s islands for pure tropical beauty and relaxed way of life.
It has all the cultural benefits of living overseas without the hassle of foreign laws and banking regulations.
5. Gulf Shores, Alabama
Well known in the South for its beautiful beaches, the Alabama Gulf Shores is getting a reputation beyond the region for southern hospitality, balmy weather, and fun family activities.
There are lots of festivals in this area in the summer months and plenty to do for visitors of every age from birding to bicycling.
6. Ocean City, Maryland
Ocean City with its famous Maryland crabs is a favorite destination for people living in the D.C. area. A waterfront condo here can be a welcome respite to the sweltering humidity that engulfs the District of Columbia in the summer months.
With a traditional boardwalk and plenty of nightlife, college kids and young adults enjoy weekends in Ocean City as much as families and retired couples.
7. Virginia Beach, Virginia
Virginia Beach is another waterfront area with a steady stream of visitors from the D.C. and Charlottesville areas, not to mention the itinerant military families stationed there.
Besides the wide gorgeous beaches, the area is a favorite for surfers and for history buffs, due to its reputation as one of the earliest settlements in colonial times. There are also numerous places to enjoy wildlife sightings, from birds to aquatic mammals.
8. The Algarve, Portugal
Maybe you would like to invest in a second home in another country. There are certain tax benefits to investing overseas, in addition to different laws and regulations of which you should be aware. It’s always best to consult with local realtors and expatriates in your area of choice before placing your deposit.
The Algarve in Portugal has long been a favorite of tourists from the United Kingdom, who often take family holidays on its rocky, picturesque beaches in furnished apartments and cottages.
Portugal is one European country that allows non-residents to take out mortgages, so financing has fewer hurdles than other EU spots. It also has more lenient rules on establishing residency.
9. Ambergris Caye, Belize
Belize also has been growing in popularity amongst expats and tourists, with its pristine coral reefs, tropical weather, and superb fishing and scuba diving sites.
Because there are few fancy resorts, most visitors rely on rented condos and AirBnBs, so you have a built-in market for your property.
10. Puerto Vallarta, Mexico
Mexico still brings the biggest bang for your real estate buck, especially in tourist-friendly areas like Puerto Vallarta. Many U.S. and European banks have set up branches in Mexico to facilitate lending to Americans, Canadians and other nationalities wishing to purchase real estate here.
Crime rates are higher here than in other areas, but the tourist areas are well policed.
Always work with reputable property agent, notaries, and other professionals when you are investing in real property in a foreign country like Mexico.
Best Real Estate Investments: Location, Location, Location
The best real estate investment is a place on the beach which can be rented out to families, couples and groups wishing to take advantage of sea air, low prices and proximity to the water. You can make back your initial investment quickly if you choose a place that others want to visit.
Whether it is in another state and another country, you can also take advantage of certain tax write-offs and other benefits. Research whether a limited liability company or other structure will allow you to reap financial benefits from your second home in addition to the lifestyle benefits.
Do your due diligence. Check out the region, including its economy, tourist numbers, and home prices. See what works with your budget and needs.
For more information on the best real estate investments for fun and profit, check out our blog.
