Is It Worth Having a Beach House?

If you’ve looked at beach houses for rent or indulged in beach house rentals in the past, you may have dreamt of buying your own beach house. Just imagine an idyllic vacation home where you can escape from the city, recharge, and refresh.

As you’re probably aware, owning a house on the beach involves much more than just the purchase price; there are monthly homeowner costs, maintenance challenges, and decisions that have to be made every year. Before you start browsing beach houses for sale, let’s go through everything beach house ownership entails.

Why Buy a Beach House?

Some of the reasons for owning a house on the beach are obvious: the relaxing sound of the waves and the healing effects of being near water provide unique opportunities to relax and restore the soul. You also get the chance to engage in water-based activities like surfing, fishing, and playing in the sand.

In addition, there are financial benefits to owning your own beach house. It can be a long-term investment for your family; like other types of real estate, beach properties tend to increase in value over time. You can also earn passive income from the beach house by renting it out when you’re not using it. In fact, many people look for a beach house for sale for the rental income alone!

How Much is a Beach House?

Beach house costs vary dramatically based on several key factors, including:

• Proximity to the water: The closer the beach house is to the shoreline, the higher the price.
• Water views: Panoramic ocean views add significant value, especially when visible from multiple locations in the beach house.
• Lot size and elevation: Just like any property, larger lot sizes command a higher price, but with a beach house, elevation matters too. Homes on higher ground have better views and may also be safer from storm surges and flooding.
• Condition and age: Newer builds cost more but offer better energy efficiency and are now built to withstand more severe weather. An older beach house will likely require more maintenance and upgrades.
• Local market conditions: Beach communities vary widely in popularity, local tourism demand, and housing inventory. A beach house in a community like Malibu or the Hamptons will be considerably more expensive than one in a lesser-known coastal town.
• Insurance costs: Coastal properties in storm- and flood-prone zones are more expensive to insure.
• Rental potential: A beach house in a popular rental area will be more expensive. When looking for a beach house for sale, check local regulations to make sure short-term rentals are permitted.

The price variability in beach houses for sale can be frustrating, but it means that you can own a house on a beach even with a low budget. In a modest beach town, for example, you can find beach houses for sale for under $300,000. Luxury beachfront residences in desirable communities can sell for over $5,000,000.

Costs of Beach House Ownership

If you’re looking at beach houses for sale, you’re probably most concerned with the purchase price. However, the cost of buying a beach house can add up, and beach house ownership can have unique expenses, including:

Insurance Costs

Coastal properties often require flood, hurricane, and wind damage coverage. This insurance can be very expensive depending on your location and the history of severe weather events in the area. In some locations, certain types of insurance may not be available at all.

Maintenance Expenses

Saltwater corrosion and weather damage can result in higher exterior maintenance costs. A beach house needs to be painted more frequently, and homeowners should be prepared to pay a premium for repair and maintenance services during the busy season.

Property Management

If you are looking for a beach house for sale so you can rent it out, you will need to factor in cleaning and maintenance costs between rentals, marketing and booking management, and the extra supplies you will need to have on hand for guests.

Beach House Rental Income Potential

Renting out a beach house is a top reason for buying one. With the right property, expert management, and a high-demand location, you can earn substantial passive income and pay your mortgage off much faster. Exceptional properties, for example, can bring in 10% to 12% of the value of the home annually.

Here are the factors that weigh into beach house rental rates:

• Peak season versus offseason pricing.
• Proximity to the water.
• Local competition for rentals.
• Property amenities and unique property features.
• Nearby amenities such as shopping, parks, and local attractions.
• Property management efficiency.

Keep in mind that rental income isn’t guaranteed, and some years may be better than others depending on weather, economic conditions, and even global events.

Does Beach House Ownership Make Sense for You?

Is it worth having a beach house? There are many factors to consider.

Signs You May Be a Good Candidate to Own a Beach House

These questions may help you decide if buying a beach house is a good idea for you:

• Do you have a high, stable income that will allow you to afford a second home?
• Will you be able to use the beach house regularly and get personal enjoyment from it?
• Can you picture yourself travelling to the beach house on a regular basis?
• Will your family and friends be able to join you at the beach house?
• Are you okay with managing a second property, or do you have access to a reliable property manager?
• Are you planning to hold onto the property long-term rather than expecting quick profits?

Indications A Beach House May Not Be Right for You

Ask yourself these questions to spot red flags:

• Are you stretching your budget to afford the purchase or putting off other financial priorities?
• Are you counting on high returns or short-term rental income to make the property viable?
• Do you have limited time or interest in managing a property or little experience with property management?
• Have you carefully considered the ongoing costs of ownership, like maintenance, insurance, and property taxes?

These questions can be difficult to answer when you are dreaming of a house on the beach. However, it’s important that you be honest about the responses so you can make the best decision for your lifestyle and finances.

Finding the Right Beach House

If your answer to “Is it worth it having a beach house?” is “Absolutely!!” It’s time to move forward!

Research is extremely important with beach houses since markets vary so widely. Work with a real estate agent who is familiar with the area, including local regulations and rental restrictions. In the home inspection, put extra focus on salt damage and structural issues to ensure the beach house is up to the task.

Best of luck with your beach house adventure! We hope you’ll enjoy many years of warm sand and calming waves!