When it comes to investing in properties near the beach, there’s more than meets the eye. The allure of pristine sands and breathtaking views often clouds the practical aspects that investors must consider. The recent developments along Long Beach in San Vicente, Philippines, shed light on crucial factors that can significantly impact your investment decision – whether to opt for a beachfront property or a commercial lot near the beach.
Understanding the Challenges of Beachfront Properties:
- Stringent Setback Regulations: Beachfront properties along Long Beach face an unusual setback regulation of 50 meters from the high tide point. This non-buildable zone, double the usual setback in coastal areas, aims to prepare for the future impacts of climate change. While it’s a wise move for long-term sustainability, it poses challenges for small properties, limiting their development potential.
- Public Access Considerations: The proposed bike lane, situated 50 meters from the high tide point, enhances foot traffic and accessibility but might not be ideal for those desiring exclusive resorts. Balancing public access with the privacy of your guests becomes a crucial factor in decision-making.
- Development Restrictions: Only movable, non-permanent, and lightweight improvements are allowed within the initial 50-meter setback zone. For small property owners, this means a prolonged return on investment (ROI) period, as significant developments can only occur after 100 meters from the high tide point. This restriction can considerably delay the break-even point, impacting the financial viability of your venture.
The Appeal of Commercial Lots Near the Beach:
- Cost-Effectiveness: Commercial lots near the beach offer a more budget-friendly alternative to beachfront properties. The reduced cost allows investors to acquire more extensive parcels of land, providing ample space for development while adhering to regulations.
- Enhanced Development Opportunities: Unlike beachfront properties, commercial lots often come with fewer restrictions. The freedom to develop larger resorts, restaurants, and amenities can expedite the ROI process. Investors can design expansive, all-inclusive resorts without compromising on space or guest experience.
- Flexibility in Design: Commercial lots offer greater flexibility in designing the layout of the property. Investors can optimize space, ensuring a harmonious blend of aesthetic appeal and functional efficiency. This freedom allows for creative architectural solutions that enhance the overall guest experience.
Making an Informed Decision:
Considering the challenges and opportunities presented by beachfront properties and commercial lots near the beach, investors must assess their goals, budget, and long-term vision. If exclusivity and a limited number of guests are your priorities, a beachfront property might align with your objectives. However, if you seek a cost-effective investment with ample space for expansive development, a commercial lot near the beach offers a pragmatic solution.
Investing in beachfront properties or commercial lots near the beach involves careful consideration of regulations, budget constraints, and development goals. By weighing the challenges and advantages of each option, investors can make informed decisions that align with their vision and financial aspirations. Whether you choose the allure of beachfront charm or the practicality of a commercial lot, your investment journey begins with a clear understanding of the available choices and their implications.