Purchase beach property now?

Asked by Maude Moore, 08080 Sat Dec 20, 2008

Considering purchase of rental property or second home in beach vacation area - NC, MD, or DE. Can't afford beach front - walk to beach is best I can do. Will beach proerties remain a strong investmet when the market recovers? Possible 1031 exchange if I could sell rental property ski condo but that could take a year. Is 1031 a realistic goal? Saved cap gains could be lost in higher purchase price? Any advice appreciated!

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Bill Eckler, Agent, Venice, FL
Mon Dec 22, 2008
Maude,

1031 is the route to go.....

Addtionally, beach front property is definitely becoming more affordable and a consideration for those that previously could not afford it. If there ever was a chance to own affordable beach property, it is now. Our recommendation is to join the hunt and begin exploring your options.
0 votes
Larry Story, Agent, Greensboro, NC
Mon Dec 22, 2008
Maude,
Greg is right there are strict guidelines and timetables with a 1031 exchange. Your intent must be spelled out from the beginning also. This way the funds will be protected. Of course not knowing where you ski condo is some beachfront properties are very reasonable. Of course Greg would know better actually being at the beach. It will also depend on which beach you are looking at. There are plenty of less populated beach areas that do not have ridculous prices. Of course selling your ski condo is the first leg of this journey so interview several Realtor's where your ski condo is to list and sell it. Make sure you tell them that this will be a 1031 exchange. You might want to include that in your list of interview questions. Such as how many 1031 exchanges they have actually done. If you need help I can refer you to a top agent in whatever area you need through our international network.
Beach properties will still be a very strong investment and since we are in a buyers market you could most likely get an extremely good deal. Of course as with any other market there are ups and downs. Although in real estate we have a fixed supply of land and even less of beach property. I don't believe we will be going the Dubai route.

Hope this helps,

If you need any help do not hesitate to contact me through my profile here on Trulia or my website below.
Web Reference:  http://www.storybookhomes.ws
0 votes
Greg Cremia, Agent, Nags Head, NC
Mon Dec 22, 2008
The first thing you need to do is put your ski property up for sale. Ski resorts are experiencing the same slow down as the rest of us.

Next you can start to shop for your OBX beach property here http://www.outerbankshome.com/search-mls.html .

Use the map feature to look at the satellite picture of the house and neighborhood.

A 1031 is very possible but the guidelines are strict and have to be followed exactly. Drop us a line and we can find out if your property will fit the necessary requirements of a 1031. 800-647-1868
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