Buying a home on the beach can bring an excellent return on investment, a reliable income stream, and access to a charming vacation spot. Many beach house investors buy houses that they later rent during peak tourist hours. While the perks of owning a beachfront condo are quite lucrative, it also has its challenges. Because the return on investment is higher, your stakes are also high.
Here are some downsides and risks associated with owning a beachfront condo. Yes, condos generally appreciate their value. That's true for any property, as long as it doesn't have wheels or comes from an RV park. But, if you're trying to decide between a condo or a house, keep in mind that, in general, the value of a single-family home will increase faster than a condominium.
With lower purchase prices and more desirable locations, condos can certainly be profitable investment properties and enjoyable vacation homes. But keep in mind that condos also have less control, due to the community HOA. In addition to collecting condominium owners' fees each month, HOAs have control over what happens in their community. Some condos won't allow you to rent, while others will allow long-term, but not short-term rentals.
Because these guidelines vary from community to community, it's important to understand the limitations of a specific condominium before moving forward, as these laws could significantly affect or halt your plans for a rental property. A big benefit of investing in a beachfront condo is access to high-quality community services. There is usually a fitness room, a swimming pool, and a club room in most of them. These are services that guests find quite attractive.
Many people don't follow their regular exercise routine while on vacation, but a gym can make a difference. Properties with abundant amenities are preferred and this means high turnover. You might be surprised to have the unit rented all year round just because of the amenities. Short-term rentals will give you consistent cash flow; therefore, they should be your target audience when you get a beachfront condo.
For some of us, our favorite holiday memories are in the water, playing in the sand, jumping in the waves, swimming and looking for shells along the coast. So why wouldn't we want to enjoy those pastimes every day moving to the beach? It's no secret that buying a house on the beach is often a real estate dream. And, fortunately, it can be achieved. But like any major life decision, there are certain aspects you need to consider before diving headfirst into it.
Take a look at these common considerations to help you find the best place to buy a beach house and exactly what type of beach house is right for you. There are sandy and picturesque beaches all over the country. Your first priority is to decide exactly where in the U.S. UU.
You prefer to install that beach umbrella permanently. Where is the best place to buy a beach house? Some cities and regions to consider are the East Coast along the coasts of Maine and Massachusetts. There are also North and South Carolina. Florida is also a must-see, especially if you like warm weather all year round.
And, of course, California and the West Coast are natural selections. Another great but often less thought-out location? The Midwest. After all, a beach house can be anywhere there is water and sand, whether it's an inland lake or a rocky shoreline, right? Anyway, you're sure to get a unique view that will take your breath away. Speaking of different types of coastlines, what do you want right outside your door? Do you want perfect white sand or do you like rocks? Flat as far as the eye can see? Or dotted with dunes here and there? You should also determine if you want the beach right outside your back door or if you prefer a view of the beach from the other side of the street.
Do you want to take a walk to the beach? A bike ride or car ride to get to the water? The most important rule in real estate is “location, location, location. You can always update the interior or exterior of a beach house, but you generally can't move it to a better location. So think carefully about the type of location that best suits you and look in that area for a beach house that you want to visit frequently or live 365 days a year, including the coldest months, when the water isn't as hot for years to come. When you think of a beach house, you think of a view of the water, right? Well, what about those beautiful sunrises and sunsets? Ideally, you should watch the sun set over the water, so a west-facing viewpoint is important when looking for a home.
Sunrises can also be important, but they are somewhat secondary in terms of the value of the house when it is going to be resold. However, if you like the sunrise, look for a house on the beach where you are facing the water when the sun rises in the east. In addition to evaluating your budget for the purchase and knowing where you want the house, you'll want to know how much it will cost in the long run. Beach life, in and of itself, is expensive, so you need to be prepared and think about the additional costs you'll have when you live there, such as higher property taxes and beach home insurance costs, which can be higher when you're closer to water in many areas (think major flood insurance).
Also note that some beaches charge tolls to access them, even for residents. Another critical note is that places with beachfront properties are often involved in natural disasters such as hurricanes and floods, so you'll also need to be prepared with an emergency fund to repair or rebuild in the event of a disaster. Real estate prices tend to rise over time, regardless of the type of home, so owning a condo or beach house is a good investment. However, you'll need to factor in all costs, such as Homeowners Association charges, for example.
You'll also need to realize that if you're just buying this property as an investment, you'll likely want to keep it for at least five years or more to really get your money's worth. Combine your new relaxed, beachy lifestyle with a flexible moving option. With PODS, a portable moving container is delivered directly to the entrance of your home and, when it's ready to go, it's picked up and taken to your new home. You can pack and load (and then unload and unpack) at your own pace without the rigid schedules of a moving company or the hassle of dealing with a DIY rental truck.
The decision to buy a beach house is a big one, in fact, even if you are only looking for small beach houses or condos. But the benefits of such a purchase can also be powerful. A view of the beach can be serene but also humiliating. It can reduce your stress, show that your problems are smaller than you think, and give you a sense of peace about the world.
There are many reasons to invest in buying a beach house. If you're ready to let go, jump and live your best life on the water and sand, check out the PODS blog for help with moving tips, ideas for decorating your beach house and much more. Karen Dybis is a freelance journalist and frequent contributor to the PODS blog. His work has been featured in Time magazine, US, S.
News %26 World Report, The Detroit News and more. Save my name, email and website in this browser for the next time I comment. If you are willing to work to find a profitable location and spend time finding a property with great income potential and are willing to use tools such as vacation rental software to help boost your property management, it would be a wise investment to buy a beach home. It will be even easier to book a beach vacation if you already have a beach vacation home, which you can simply lock in your availability calendars and enjoy with friends and family.
When it comes to buying a beach home, you can expect high returns on investment, a reliable income, and access to a pleasant beach property. While the main purpose of a vacation rental investment is to rent your home to guests, the beach house will remain your property for your personal use when you want your own getaway. If you commit to the beach experience, your beach rentals can't be far from the real beach. While this is by no means an exhaustive list of the best beach spots for vacation rental properties, it provides a great place to start looking.
If you're considering buying a beach house anywhere in particular, it's best to do a little more research on local vacation rental laws and regulations before making a big investment in vacation rental properties only to get caught up in government bureaucracy. Similarly, while a beach property thrives in the summer months, if there isn't much more to do in beach towns, your rental income will suffer during the colder seasons, when guests aren't as keen on going to the beach. Let's look at what it takes to invest in a vacation rental in a beach house that successfully generates a stable rental income. On average, beach properties attract higher rental income than those that don't offer beach services or something similar.
As mentioned above, the potential benefits and drawbacks of investing in a condominium will vary depending on the intended use, whether it's a primary residence, vacation home, or rental property, so let's look at each in a little more detail. With the stunning sea views and built-in beach activities, such as swimming or surfing, for guests to enjoy, the beach house will practically market itself, especially during the peak season in summer. . .