Real estate was and still remains one of the most lucrative investment strategies anywhere in the world. Knowing how to invest in real estate could bring high returns for investors. Some of the most common housing market investments are rental properties, house flipping, real estate investment trusts, and a few others. However, not many consider buying floating homes to expand their investment portfolio. But, are floating homes a good investment?
While some people might be wondering if house flipping is still hot, others think about some unusual ways to invest in real estates, such as floating homes. Not to be confused with houseboats, which are much like cars; they typically depreciate by 20% in the first year alone. Floating homes can appreciate much like any other piece of property, even though a floating home doesn’t technically constitute “real property.” However, this is an advantage because there might be no property taxes associated.
You can think of a floating home like a condo, but rather than having a unit in a building, this one is on water. As a floating homeowner, you would have to pay HOA fees for maintaining the dock and slip. Floating homes around the world are permanently connected to sewer, electrical, and water, and they are built and moved in one place just once.
The urban real estate market is rough in some of the biggest US cities. The costs of a basic home in Seattle, San Francisco, New York, or Los Angeles are way out of reach for many people living in these cities. Buying a floating home could be an unconventional solution that allows them to continue living in the city without sacrificing too much, financially speaking. Some might even consider getting the necessary permit and start breaking down the costs of building a floating home. It’s a fairly common approach for many who decide to live on the water.
On the other hand, some of the best cities to become a boating family are hot spots for floating homes. Probably one of the most challenging things to deal with is the wear and tear of your home caused by the water. Over time, water devalues the asset, so many might find it difficult to make a profit out of floating homes.
Being part of a floating home community is an enjoyable experience for many people, and finding the right marketplace to invest in floating homes can be very rewarding. Start asking around, or find a real estate agent who can give you a detailed insight into some local floating home communities.