Is now the time to buy beach property?

NEW YORK (Money Magazine)

Test the waters first. A beach lot may have a lower cost of entry than an investment in a beach home, says Gary Eldred, author of Investing in Real Estate, but your risk is much greater.

At issue: conditions that limit what you or anyone else can do with the land, such as access to utilities and zoning that restricts the size and location of any structures.

Related: Was my home a good investment?

You'll need a good agent and appraiser to determine whether that price drop signifies a deal or simply reflects news that has lowered the land's value.

A neighbor might have an easement on the property, for example, that restricts the area you could build upon, says Sheila Dodson, executive director of the Coastal Association of Realtors.