There is nothing quite like living on the beach. Every day, you are serenaded by the waves crashing against the shore and the sound of sea birds flying by. You can sink your feet into the sand whenever you wish and refresh your eyes with peaceful views of the big blue.
This lifestyle is only one part of the entire appeal of beach homes. Investment-wise, beach properties have tremendous potential. They are highly coveted and come in very limited supply. Fortunately, some of the country’s best beach communities are in Florida, which is why the Sunshine State is a popular choice among home buyers who would like to own a beach house.
To be one step closer to your dream, here is everything you need to know before buying a home by the beach.
- You should work out its purpose before purchasing
Is the beach home for you and your family’s enjoyment as a secondary residence or is it meant to be a vacation rental, or both?
Knowing the beach home’s purpose before searching for properties will help you identify the best places to look and amenities to consider. More importantly, it will also help you secure the right kind of financing for the beach home.
- You should work with a beachfront home specialist
There are plenty of Florida realtors and every single one has an area of specialty. Since you are interested in investing in a niche market, it would be best to work with a real estate agent who specializes in beachfront homes.
- Prices for beach homes are more procyclical than other types of real estate
When it comes to residential real estate, beachfront properties are usually considered non-essential. People often purchase beach homes because they want to, not because they need to. As such, the prices for beach homes are typically more procyclical which means they are affected by the economy.
- Insurance is likely to be more expensive
Beach homes are more exposed to the elements, particularly saltwater and wind, than other types of real estate. There are also other environmental factors, such as erosion and flooding, that must be taken into consideration.
Because of all these things, the homeowner’s insurance for beach homes is likely to be more costly. Flood insurance alone can cost a yearly premium of up to $10,000 in most parts of Florida.
- It can be costly to manage a rental beach home
If your beach home is to become an income property, there are several things to prepare for. First is the tax bill. Second is the overall maintenance cost of the property. Third is the marketing and advertising the beach home will need to attract short-term or long-term tenants. Should you decide to hire a professional property manager, you will need to factor in their salary to the total expenditure as well.
Having a beach home can be an extremely gratifying experience, especially when the home buying process is done right. The Connie Cabral Group can help you with that. For more information, connect with our team today at 305.776.0899 or connie(at)conniecabral(dotted)com