Hey,
Does anyone think that those little beach huts would be a good investment. I can imagine they’d be fairly cheap. Perhaps good for positive cash flow?
Any thoughts?
Are you from Victoria? I’m guessing not.
I live in Dromana on the Mornington Peninsula; we have about 50 or so along our beach. There are some more up the Bay in Mt. Martha, some south down around Portsea, and some up near the city at St.Kilda.
Our neighbor owns one and we spend many days there with them over summer (not right now as we are in L.A). They are a great thing if you love the beach as we do.
They are selling for between $70-$90k in our area depending on how good they are, how big and where they are positioned. In Portsea they go for over $100k sometimes.
You cannot insure them against loss as far as I know; if you could, it would be prohibitive as they are prone to vandalism.
You cannot stay in them overnight, or rent them out.
Maybe you could rent them privately, as I’ve never seen them advertised thru the agencies in our township. You would have to arrange your own agreement with a prospective renter, but you’ll find it will only be for a few weeks a year (xmas – Feb).
They are purely a lifestyle choice, but they do eventually go up in value as they are in short supply. The only problem is paying the loan. Our neighbor will sell you hers for $80k I reckon.
Cheers,
Marc.
[email protected]“we get sent lemons; it’s up to us to make lemonade”
I saw one for around $50k ~ 12 months ago. There was a rule that you couldn’t buy it unless you were a ratepayer in the shire… that may be a factor.
F. [cowboy2]
Hello again,
Thanks for both of your comments.
LA – No, I’m from NSW.
I’m not a huge beach-goer but I was just considering as an option for an investment. Not that I’m ready to invest right at this moment. It was just for future consideration really.
But if they’re difficult to rent out it probably wouldn’t be worth it. Maybe if you bought a few of them, you could run a B&B. Just thinking out aloud.
Thanks again!
[biggrin]
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