I was reading a residex report the other day. (Residex is a company that compares purchase price to rental income). The report showed something very clearly - if you want to buy a rental, but one near the ocean! These places go up in value faster than inland property, and while that is happening they command a much better rental return.
Prices near the ocean do not have to be expensive. For instance, The residences at Bay Point has an entry point of under $300k - for one block back from the ocean.Â
The Beacon Hall Garden Apartment complex on Route 35 in Point Pleasant Beach, NJ, near Bay Head, NJ has begun the process of converting from rental units to one and two bedroom condominium units. This exciting project features 48 units that are being offered for sale to the public.
This is an interesting development - the asking price is not the top of the market because these units are not “brand-new” however they have considerable advantage over a new unit because of the entry price, yet still maintain a comparable return because they are completely refurbished!The other advantage over an older property is indeed that refurbishment, which you should get maximum tax depreciation on.
These units represent the best of both worlds in property, and I always advise people to look for refurbished apartments in a great rental return area as a great investment. The Residences at BayPoint certainly fit the bill.
