Here’s Why Cash Home Buyers Are Targeting Coastal Properties
With the high mortgage rates being a key factor in the industry, the percentage of residences bought by all-cash buyers has been increasing in the last decade. According to Redfin, over 34% of the residence purchases made in the US were made by cash purchasers.
When looking for residences to buy, cash property buyers consider the property’s location and its value. Since they will be upgrading the property, the seller doesn’t have to worry about renovating it before selling. Here are some of the key reasons why cash home buyers target coastal properties.
Location of the House
Cash home investors always prioritize the property’s location when purchasing houses. When considering the location, they consider overall market demand, proximity to various amenities, and neighborhood desirability. That’s the main reason they prefer properties in the coastal regions, as they have a huge potential for development and growth.
Coastal cities and counties are hotspots for tourism. Besides Las Vegas, all the US coastal cities attract tourists all year round. The proximity to tourist hotspots makes them a great option for investors. The popularity of vacation residences in these coastal cities has encouraged most New England Home Buyers to invest in these homes.
The proximity to a shopping mall, beautiful beaches, 5-star hotels, and parks has made these properties perfect for people looking for short-term rental homes when on holiday. On top of that, the market demand for coastal properties is still quite high, guaranteeing them value for their money.
Capacity for Value Addition
Unlike most properties, most old coastal homes have a high capacity for value addition. Modernizing or renovating these homes can increase their value, which benefits cash home buyers.
If it’s a beach property, these investors can do more than install a new roof or renovate bathrooms and kitchens. They can add a swimming pool and a beautiful backyard overseeing the ocean.
From a circular fire pit to a curved boardwalk with coastal plants, these investors are spoilt for choice regarding the backyards.
Since they’re only occupied sporadically, they always ensure that the backyards are low maintenance, but still beautiful. The ability to convert high-maintenance backyards to low-maintenance options can help these buyers save cash in the long run.
The Price of Beach Properties Has Been Dropping
Thanks to climate change, beach properties have been losing value in the last few years. From Nantucket, Massachusetts, to Long Island, New York, the price of the country’s coastal properties has been affected by intense rainfall.
This has affected homeowners who have no budget to renovate their homes to deal with climate change.
This has attracted home buyers to purchase them and convert them into holiday homes. Remember, with proper renovation, these properties can be protected from flooding, which has affected some homeowners in the coastal region.
Simple renovations like elevated buildings and seawalls are improving these homes. In addition, there are various climate-resilient materials investors can use to improve these homes.
Endnote
The fact that vacationers tour these places all year round makes coastal homes a significant investment for cash home buyers. These buyers can buy these properties at a lower price, renovate them, and then resell them later at a higher price. They can also renovate some of these beach-front properties into vacation homes and rent them to vacationers.
