Australians love the beach, and with thousands of kilometres of coastline to choose from, overseas property investors can make a good long term investment on a beach house in Australia.
As with all property investments, location is key. If you want to appeal to holiday-seekers all year round, you’ll need to search for properties near tourist hot spots.
However, you don’t have to necessarily pay the million dollar plus prices for popular resorts such as Victoria’s Sorrento or Sunshine Beach in Queensland. Look instead to neighbouring suburbs such as Rosebud, Victoria or Peregian Beach, Queensland where prices can be below $800,000, while still offering a similar seaside experience.
Look for areas growing in popularity such as the Mornington Peninsula’s Rye, Tootgarook and Capel Sound in Victoria, currently offering prices below $700,000, but experiencing annual value growth of 9 per cent.
Beach houses should be just that, close to the beach, to attract potential renters. An ocean view is ideal to maximise potential occupancy.
The more bedrooms you can afford the better, as many Australians like to make at least one annual beach holiday with all the extended family. The more accommodation available, the more attractiuve for families it will be.
Most coastal communities tend to have older housing stock, built in the sixties or seventies. While this is good news if you’re looking for solid foundations and structure, you must bear in mind they may require more significant renovations than newer builds.
Beach front properties are also more prone to erosion and wind damage, so a solid structure such as a brick foundation is key.
For renovation projects it is also important to research the local area, both for budget and also to ensure that the right tradespeople are available for the whole job. Accessibility of the site and council regulations are also important to be aware of.
In order to ensure that the property will be attractive to renters the whole year round you also need to consider climate control. A well-insulated house can go a long way to managing the temperature and reducing power costs, regardless of the season.
Keep an eye out for homes that offer heating options – whether it’s an air conditioner that doubles as a heater, or even a fireplace.
With the right research before you dip your toes in the water, life can be a beach for overseas property investors in Australia.