What to Consider when Buying a Beachside Property

Many people enjoy visiting the beach, and little ones love playing in the sand and building sandcastles. Some people that aren't fortunate enough to own a beachside property often consider purchasing an ocean or seaside property. But is it a good investment? Can you afford two mortgages? Can you rent out the property when you aren't using it? These are all good questions to be considered when thinking about buying beachfront property.

A Place of Your Own on the Beach:

Buying a beachfront property can be an attractive idea as the temperatures start to rise. It is especially true if you live in an area without access to the water. A condo on the beach may be an excellent option for those that aren't ready to make a permanent move.

A condo can be a viable idea for those who want a vacation place but don't foresee themselves living in the property full time. While most condos are less expensive than a luxury home, there is the option of renting out the apartment when it is not in use.

Is Purchasing a Beachfront Condo a Good Idea?

Those that enjoy the water and watch the sunrise or sunset from their private balcony may be drawn to purchasing a condo. But, before you do, consider these tips:

• Don't rush into signing a contract for a condo, do your due diligence by checking other areas, looking at the differences in cost and what you get for your money.
• Don't buy a condo or beach house in the height of the spring and summer season. Wait until fall when prices typically drop.
• Choose the right location, especially if you plan on renting your condo, adding it to VRBO or Airbnb. Again, the more likely you will be able to rent it out and charge top dollar.
• Ocean bordered states have the most desirable locations.
• According to Zillow Research completed in 2018, coastal locations are the easiest to rent.
• Make sure you understand all the hidden fees, such as upcoming taxes, condo-owners fees, and homeowners association fees. Also, learn how much monthly electric, gas, and other bills will be so there are no surprises.

Location, Location, Location:

It is just coon sense that a condo on the shores of Myrtle Beach or San Diego will garner more money than those located in Hammond, Indiana.

Waterside homes are varied as some are on the ocean and others on lakes and riverways, so determine where you prefer to live and what will have the most demand as a rental property.

According to realestateagent.com, here are some of the most desirable areas located on the ocean:

• Ocean City, New Jersey
• Boca Raton, Florida
• Myrtle Beach, North Carolina
• San Diego/Carlsbad, California
• Cannon Beach, Oregon

Some of the top areas for lakeside homes and condos include:

• Lake Tahoe, California
• Lake Champlain, Vermont
• Lake Coeur D'Alene, Idaho
• Lake Chelan, Washington
• Deep Creek Lake, Maryland

No matter where you decide to purchase, it is critical that it meets your needs. Whether to plan to live there all year round, use it for part of the year, and as a rental property, it should meet your criteria. In addition, the cost should fit your budget and your short and long-term goals.

Distance is Important:

If you are planning to visit your seaside home frequently, it should be a reasonable distance from where your primary residence is located so that you can enjoy it often.

If you plan on renting out the property when you are not around, you should have a property manager and maid service hired to ensure the property is in perfect condition and is cleaned and sanitized between each guest.

Additional Tips:

Unfortunately, not everyone will treat your beachfront home or condo the way you will, so here are some tips to help keep your home safe and in good condition.

• Make sure that you have a minimum age requirement listed if you rent out your property. Although, Beach vacations are favorite spring break destinations if you don't want spring breakers using your property, up the age requirement or add a hefty charge for broken items and incidentals.
• Collect a security deposit if you have valuable furniture and collectibles.
• Remove anything expensive or delicate.

Beachside properties may not be outside your finances if you explore all the positives and negatives before purchasing.