Many investors have been buying coastal homes recently. These investors are purchasing these coastal homes as either secondary homes or vacation rentals. Low market prices and foreclosures have provided flipping opportunities in the market, but there are few points you need to consider before you finalize your purchase.
Local county governments all treat property taxes differently. If you hold the home for a couple of years, you may be hit with a rise in property taxes. In these tough financial times, many local governments opted to either reduce the property taxes or freeze them for a period of time.
When the market begins to recover (and it will recover) the local government could reevaluate the amount of the property taxes and raise them. This will likely vary with different markets. Many red-hot real estate markets have experienced property taxes double every few years in the past as a way of curbing the demand in the area.
The Internet has been changing practically every industry and every profession, and the real estate business was not left unaffected. Of course, the changes in the real estate business, thanks to the wonders of the Internet, have all been good both for the realtor and the property buyer.
For the United States, there might have been a real estate crash and the industry is just too risky to get involved in, but on the other side of the Atlantic, the United Kingdom has a thriving land development industry!