33% of vacation homes that are purchased are beachfront properties. Investing in beachfront houses provides many benefits and can provide a significant return on your investment, whether you plan to rent it out or not.
However, there are a few factors that you need to consider before making the jump and purchasing a beachfront home. Do you want to learn more about investing in beachfront houses? Keep reading these key factors to consider.
Check Insurance Rates
One of the first factors to consider before buying beachfront houses is the insurance rates. Floor insurance is often required for homeowners, especially for beachfront properties, and is not usually included in typical homeowners policies.
While insurance is necessary for beachfront houses, you should learn more about the insurance rates in a particular area. Typically, rates are much higher for waterfront homes, especially because they are more likely to be damaged from natural disasters, floods, and more.
Understand the Purpose of Your Home
There are many reasons why you may want to buy a waterfront property. Whether you want to make it your primary residence, use it as a place to retire, or even to rent out to others, this will make a difference in what type of home you want to buy.
For example, if you are planning to live in your beachfront home, you may want to find a property that has amenities that are important to you. These things may not matter as much if you are investing in a rental property where you will not live.
By understanding the purpose of your investment home, you can make informed decisions about what features and amenities you need.
Be Ready To Act Quickly
Next, you need to be prepared to act quickly when you are looking for a beachfront home. Because these properties are so popular and have a limited supply, you need to be prepared financially to invest.
Otherwise, you may lose out on a great opportunity. Make sure you are prepared with a high-quality realtor, a pre-approved mortgage, and don’t have anything to hold you back from investing.
This will allow you to jump on a great deal for a beachfront property before someone else snags it. Part of being able to act quickly is setting a budget for your dream home and making a list of deal-breakers for the house that you want.
During the house-hunting process, you never know when you will find the perfect place. Being prepared will ensure that you don’t lose your dream home to someone else.
Understand That Privacy Is Limited
While beachfront properties come with beautiful views and great amenities, one thing that they lack is privacy. If you own beachfront property in a popular area, you will often have vacationers, tourists, and other people using the beach right in your backyard.
If this is an issue, you may want to buy a beachfront property in a more secluded area or on a private beach. Otherwise, you can invest in a privacy fence to keep nosy people from looking into your yard and home.
Learn About Climate Concerns
Next, you need to learn more about climate concerns before you start investing in beachfront houses. One common problem for beachfront homeowners is changing shorelines. If your beaches continually erode, your home may be collateral damage as the climate changes.
You should also learn more about the common types of natural disasters in your coastal city. If you buy a beachfront house in an area that frequently gets hurricanes or floods, you may end up losing your investment or having to pay to repair extensive property damage.
In these cases, investing in flood and hurricane insurance is non-negotiable. If your investment home is damaged or destroyed by water, having these additional insurance coverage options will protect you financially.
Research the Rental Market
If you are planning on buying an investment property for a vacation home or a rental, you must research the rental market. Learning more about the local rental market and finding a beachfront property in a thriving area will help you maximize your return on investment.
For example, if you are only going to use your beachfront property for a month or two out of the year, finding a house in a popular area will allow you to rent out the property during the other months of the year.
Be Prepared for Maintenance
As was mentioned before, there is often more wear and tear on beachfront properties. Because coastal cities have increased humidity, natural disasters, and more, your home may be negatively impacted.
Even the salt from the sea breeze can damage your home, docks, and other parts of your property. When you buy a home, you should take this into account, so you can be prepared for the cost of maintenance.
Get a Home Inspection
Finally, you must get a home inspection before you buy beachfront homes. While skipping an inspection can help you appeal to sellers and secure a popular property, waterfront and coastal homes can often be vulnerable to damage.
Because there are more storms and weather-related damage that can happen to waterfront homes, you need to get an inspection to be sure that there are no serious issues or repairs that need to be done.
Plus, getting an inspection will ensure that you get what you pay for.
Looking for Beachfront Houses? We Can Help
Although there are a lot of responsibilities with beachfront houses, they are a great investment. Choosing the best beachfront property doesn’t have to be overwhelming or difficult. By considering each of these factors, you can find your dream home!
If you are looking for luxury real estate investments in Palm Beach, Linda A. Gary Real Estate can help!
Contact our team today to learn more about our exclusive beachfront properties and to find your dream home!