Looking for a Beach Property that Cash Flows?
It is easy to be fearful right now, news is not good and the future is uncertain. One thing I can tell you is that prices are low right now. If there were ever questions about the rate of return on beach property, buying low is always a good start. Historically, vacation property does well, as the demand never really disappears altogether. People will always be interested in purchasing property in vacation destinations. If you have a good time horizon where you will also enjoy the property, it is a fairly safe investment.
Now is a good time to take a look at how the rental income on the property performs and include that in your decision to purchase. This may contribute to making the mortgage payments easier to handle, and while prices were high this was usually a small help, but the difference has gotten smaller and we may be approaching a favorable cash-flow situation. It reminds me of a great quote that I heard from Warren Buffet, “Be fearful when others are greedy, and greedy when others are fearful”.