Why Waterfront Properties Are A Great Investment


The appeal of a waterfront property is obvious; beautiful views, potential to get involved with water sports and activities, gentle breezes and evening walks by the sea. However, as an investor the benefits of a waterfront property far exceed pretty views. Waterfront properties have been valued far higher than their landlocked equivalents and they can provide great opportunities for capital appreciation and increased rental rates.

waterfront properties

Source : lindafieldsrealestate.com

According to a recent study, prices for waterfront properties can be as much as 80% higher than comparable properties that are inland. This trend can be seen across the country. The research also found that the number of people who were looking to buy a waterfront property had increased by almost a quarter in 2017, with sales volume up by 8%. The increased interest in waterfront properties for sale can also translate into rental interest. For those looking for a rental property in a great location, a waterfront view can push up rates as well as tenant interest. It can also be the deciding factor for a tenant deciding between two comparable properties – a water view is an obvious advantage.

waterfront properties

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It is not just sea views that make a difference. Properties by a lake are worth 50% more than their comparable equivalent and a riverside property can be worth an extra 76%. For investors, this new market looking for waterfront properties can provide a lucrative opportunity. When choosing your next investment, it may be worth looking to the coast or rivers for a property with potential for impressive capital appreciation. International renters have also been increasingly attracted to waterfront property with Britain’s abundance of coastline providing beautiful locations.

Some investors are put off from waterfront properties because of their increased flood risk. They can apply preventative measures, comprehensive insurance or even looking up and purchasing a property on a higher floor in an apartment building.

waterfront properties

Source : duluthrealestate.com

Like the rest of the property market, the premiums gained from a waterfront location are dependent on where they are located. In the South West, houses by the sea are demanding 75% more; an increase of 17% on 2017. This huge increase in the value of waterfront homes can make them too expensive for some property investors, so it is worth looking in areas where general house prices are more affordable. There is a limited amount of waterfront properties available, so there is a huge potential for property price growth. It is also recommended to view the property or location before you purchase to make sure it benefits from being close to the water.

waterfront properties

Source : home-buyers.com

Northern locations like Liverpool with its docks, Manchester with its canals and Wirral on the coast can provide investors with more affordable waterfront property options. Liverpool is especially appealing to tenants with its growing economy and massive regeneration projects. Properties on its historic waterfront have a huge appeal, with dockside rents higher than comparable properties away from the river. Experienced property investment specialists like RW Invest provide investors with unique opportunities to purchase waterfront properties at exclusive prices.

When it comes to your next investment, it is worth considering a waterfront property for all the above reasons. The recent increase in interest in waterfront properties is a clear sign for property investors that there will be floods of potential tenants ready to rent your waterfront home.

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