If you’re interested in a second property to rent or a place to spend the summer with your family then a beach house could be a lovely idea. As long as you’re clear about your budget and other financial or weather complications, it can be a great investment. Before deciding on purchasing a beach house there are several important factors to consider. Do your research into the local area and all the options available to you. There are different features of a beach house you need to bear in mind in order to understand if it’s the right choice for you.
The local neighborhood
One of the main priorities when buying a new home should be the local neighborhood. In the case of a beach house, you need to take into consideration the location. If you’re planning on renting it out, look into the other amenities the area can provide. Consider its proximity to water as well as this could affect flood risk and insurance rates. Close proximity to the ocean will help to increase its rental yield and resell value, but you also need to factor in other possible risks.
A beach house needs to be weather resistant. The construction and foundation need to be solid in case of flood or other adverse weather conditions. Speak to your realtor and find out more about the materials it’s built from and whether they can withstand high winds and temperatures. It’s also important to winterize your beach house, especially if you’re only planning on using it in the summer months.
Look into specific features that are necessary for beach houses such as impact windows. Window durability is crucial for a property that needs to withstand the types of weather that can occur on the coastline. Choosing a property with the right type of windows will help to protect your investment in the long-term. If they’re hurricane-proof, for example, this will also reduce your insurance rates, improve energy efficiency, and decrease sound pollution.
Opting for a new build
Opting for a new build is an easier way to guarantee quality. You can follow the construction process along the way and more modern builds tend to be more energy-efficient and secure. Work with a reliable building company for a Beach House that’s completely new, rather than an older property that might end up costing you more in renovations. Weigh up the pros and cons of either option and speak to a financial advisor to find the best solution for you according to your budget and unique requirements.
Property management options
If you’re buying a beach house as a second home you may need to consider property management options. These are in place to ensure your house is maintained properly while you can’t be there. If your new beach house is located in an HOA community, you will also need to bear in mind HOA guidelines. You will need to pay the HOA fees for services such as pest control, maintenance, and lease agreements.
Home insurance is important when factoring in the economics of buying a beach house. The reason home insurance can be higher for beach properties is due to the risks brought about by weather conditions and proximity to water. You may need to pay for extras such as flood insurance. Shop around and try to find the best rates with insurance providers. This is definitely an area in which you will need to invest a lot of time to do your research. Always factor insurance costs into your budget, even if properties are advertised as relatively cheap, or you’re considering making a profit from renting your beach house.
Renting the property
There are many benefits of renting out your beach house. If you’re smart about it, it can be a nice little money maker. The reason for this is that vacation homes tend to achieve a higher rental yield due to the location and seasonal leasing. You can charge a lot more rent for a shorter period of time. It’s not a decision to be taken lightly though and you should discuss your plans with a financial advisor before you invest.
Buying a beach house can be a great idea whether you decide to rent it out or not. It’s ideal to have a second property for a staycation in the summer as well. Make sure you are prepared and consider all the necessary factors, to ensure it’s the right solution for your next investment.
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