Apartment by the sea – an investment for years? Apartments by the sea have recently become very popular. This applies primarily to a wide range of investors who invest their capital in real estate. Can a seaside apartment really turn out to be a good investment for years to come? we answer.
Why by the sea?
Let’s start with the fact that not everyone understands the phenomenon of investing in real estate. The problem is that financial investments have long ceased to pay off. Setting up a deposit brings zero earnings, while other financial products are much more risky. Meanwhile, real estate still seems to be a good investment product. First, they are relatively safe. Secondly, it is a fairly safe investment. Until recently, investors were eager to buy apartments in larger cities. Then they rented them or resold them for a profit. The problem is that buyers are no longer interested in flats in a block of flats.
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Nowadays, more and more people choose a house instead of a traditional apartment. However, it is different in coastal towns. Here, apartments in a block of flats are still very popular. What’s more, we can also rent apartments by the sea to tourists, as part of short-term rental. If we decide on a larger city, such as Gdańsk, we also have the option of renting apartments to students. This means that the investment can pay for itself in many ways. The Polish sea, although cool, has been very popular for years. Interestingly, not only among tourists. Many workplaces are opening in seaside cities, which is why people from all over Poland, as well as from across the eastern border, are eagerly flocking there.
Start-up capital
Prices on the real estate market have not been falling for some time. Last year we could observe slight drops, but they were temporary and, unfortunately, small. At all times, the most expensive city in Poland, in terms of real estate purchases, remains Gdańsk. Nevertheless, in other coastal cities it is not much better. Therefore, there are many properties waiting for investors that can be bought and rented. Unfortunately, we need a lot of capital to start with. On average, we have to pay up to half a million for an apartment. The price goes up when we talk about better locations. Higher investment outlays mean the need to wait longer for their return. The exception is when we decide to sell the apartment right away. Nevertheless, then we cannot talk about a long-term investment, but a short-term capital investment.
Property management
In addition to financial issues, it is also very important to manage your apartment by the sea. Generally, people who live in coastal areas do not have much of a problem with this. They can go to the city where they own real estate on their own. They can meet with potential tenants, resolve disputes. Nevertheless, the real problem arises when we live on a daily basis at the other end of Poland.
Managing an apartment remotely is often impossible. Yes, even from Zakopane we can get to the seaside in a few hours, but often professional or family obligations simply do not allow us to do so. This means that it is necessary to hire a real estate agency that will manage the apartment on our behalf. Her help may turn out to be invaluable, but on the other hand, we have to pay a lot for it. This, in turn, extends the waiting time for a return on investment. Let us remember that real estate management is not only the ongoing payment of fees. We still have to hand over the keys to new tenants, resolve disputes and control the apartment when it is empty.
Advantages of investing in seaside apartments
We already know what investing in an apartment by the sea entails. Nevertheless, this investment also brings many advantages. Let’s start with the financial ones. If real estate by the sea is so expensive, the rent for their rental is also high. This means that we can offer higher prices than in other, larger cities. This applies to both long-term and short-term rentals. What’s more, we record a very high demand for apartments by the sea. This means that we will have no problem finding potential landlords. Experts do not expect real estate prices to drop drastically in the coming years. This applies primarily to large cities and seaside resorts.
We should remember that currently on the market there is no investment product as reliable and profitable as real estate. If we add to this the fact that the popularity of foreign resorts among Poles is declining, we can count on them coming to the Polish seaside more often, and thus the return on investment will be faster. Let us take into account that many workplaces are being built near the seaside, and yet the newcomers have to live somewhere. Most of them do not buy, but rent apartments. Buying a property with a view to renting out can therefore turn out to be a long-term investment.
