Buying any type of real estate can be a rewarding investment. However, proper planning and budgeting is essential to ensure you make a good financial investment. If you are considering the purchase of a vacation beach home, you may find yourself overwhelmed. Thankfully, buying real estate at the beach can be just as rewarding if you know what to look for. Here are a few things to know before investing in a home at the beach.
Your Options are Endless
A house is not the only type of property that can become a home. When searching for real estate at the beach, you do have many options to consider.
A traditional house may be most common, but a condominium is also sufficient. Condos offer a few benefits that you will not have when buying an actual house. For example, maintaining the lot around your house will be necessary, which will be time-consuming and expensive. A condominium is part of a building that is managed, so there is no worry of maintaining the exterior property.
In most cases, condos are also less expensive than traditional homes, allowing you to save money on the actual cost and exterior maintenance.
The type of property is one factor to consider, but you can also choose from a few locations at the beach. Many buyers prefer an oceanfront property for the views and ease of accessing the beach. Because they are most appealing, oceanfront properties are more expensive, as well.
To reduce costs while still having a view and beach access, opt for an oceanside property. Or, a property located a block away from the ocean.
Buy for a Vacation Rental
If this new property will be a second home for you and your family, make sure it will be suitable for a vacation rental for others. By renting out the property periodically through the year, you can pay for the actual mortgage while earning a small profit. Of course, designate certain weeks and weekends just for your family's use so you are getting the most out of your purchase.
When establishing a rental amount, there are a few factors to consider. The closer you are to the beach, the more rent you can charge vacationers. Therefore, vacationers will pay more to rent an oceanfront property.
For the best return on your investment, your rental rate should be 10 to 20 percent higher than your monthly mortgage payment. This amount will cover the mortgage and any utilities, maintenance, insurance, and cleaning fees that will need to be paid.
The purchase of a property at the beach can be a great investment. This guide will help you make the right decision when investing in a beach home.