Have you ever fantasized about owning beachfront property in a beautiful location? The notion of having your little getaway spot, as well as the extra income from the rent, may appeal to you. It may appear to be a dream investment, as you only have to pay once and receive the benefits regularly. Is it, however, worthwhile to purchase a beachfront apartment in light of the epidemic, the poor economy, and dwindling tourism? Furthermore, with increasing sea levels and a changing climate, will it be lucrative in the long run?
To aid you in making your decision here is a compiled list of all the optimistic and flawed data you should consider before purchasing a beachfront apartment.
- The benefits of owning a beach condo
- What to look for in investing in a beach condo?
- What to consider when selecting a beach condo?
- What are the best beaches to buy condos?
- Frequently Asked Questions
The benefits of owning a beach condo
Condos have a high market price
While the standard real estate investing market is highly volatile, vacation rentals and beachfront condos are different. Beachfront properties always come with a high market price attached to them. Furthermore, real estate investment may not provide the same investment return as a holiday rental.
The demand for condos for sale in myrtle beach is always on the rise. This means, even if you don’t want to rent the beachfront apartment and intend to use it solely for personal purposes, you can benefit from it by selling it at a better price in the future.
Possibility to Rent
When tourists from colder climates want some sunshine, demand for beachfront vacation condos surges, you can get a good return on investment merely from the rent, depending on where your beachfront apartment is located. Vacation rentals are likely to outperform the hotel industry in terms of demand. If you’re worried about whether the rent from the peak tourist season will be enough to cover the costs for the entire year, rest assured that it will.
You may be able to reduce expenses for your beachfront apartment depending on the state and the nature of your rental service. Use the beachfront condo primarily as a personal holiday home (not renting it for more than 15 days per year). You may be eligible for tax benefits, assuming you don’t already take full advantage of mortgage interest deductions from your principal residence.
However, if you use the home as a legitimate holiday rental, you’ll be able to take advantage of the same tax benefits as typical rental property owners. This would cover expenses such as mortgage interest, repairs, and depreciation.
What to look for in investing in a beach condo?
A large down payment may be required
Because of the expensive down payment, many prospective investors are put off from purchasing a seaside property. You may need to put down at least 20% to 30% of the total price as a down payment. Furthermore, you must pay for insurance. Beachfront condos also have higher mortgage rates than typical real estate units.
Storms and Natural Hazards
Coastal areas are vulnerable to cyclones and hurricanes, and if one of these powerful storms hits your beachfront condo, your home is likely to suffer significant damage.
While purchasing a beachfront apartment might be a terrific way to grow your assets, you need carefully consider the benefits and drawbacks before deciding. Depending on your particular position and other conditions, the condo could end up being a dream come true or a nightmare. Due to numerous condos for sale in myrtle beach, it is essential to run analytics and financial benefits before purchasing.
What to consider when selecting a beach condo?
Many people believe that beach condos are pricey because they are typically built on tourist attraction locations. However, that’s not always the case, as some oceanfront houses are more affordable than regular properties. As long as you pick the right spot, you can have your dream beach condo without emptying your wallet.
If your mind is set to purchase a beach condo, our tips will come in handy and ease out the selection process:
Pick the adequate location
You don’t just go and buy a beach condo; some research work is required beforehand. Do due diligence and search about the location, features, mortgage, and insurance of the place and rent.
If you’re not sure where you want to go, think about where you want it to be? Should it be close to the shore, a bar, or a restaurant? Look for properties that tick most of your boxes, and don’t forget to check out the appreciation rates.
Get advice from a property manager
The chances are that your beach condo will be a vacation home or a second home. Therefore, you could use it to increase your income by renting the condo. Don’t hesitate to rent it for the months you’re sure that you will not visit. It will take time until the rent will pay off the mortgage or the price of your property.
Remember that you have to pay for maintenance even when you’re not at the condo. Renting out the place is always a good decision. We suggest you talk to a reliable property management company. An excellent company will put together a revenue plan so that you can maximize your gains.
Hire a home inspector
It’s good to hire a highly qualified beach home inspector; he will help you identify the best condo for your preferences and budget. Even if the market is generous, not all beach condos make for a wise investment.
The upgrade you might have to do
Upgrades will increase the final spending. Outdoor kitchens, high-end appliances, and kitchens will turn your beach condo into a luxurious location. Should you plan to have many guests and friends coming over, you might have to add bunk beds and sleeper sofas.
The amount of decoration and upgrades vary from one area to another. The competition also comes into play. When there are many condos, you might have to deal with real competition. Sometimes, less is more and you shouldn’t rule it out. But if you want to rent the beach condo and have great competition, you will need to step up your game to attract renters.
Get the right insurance
You will need to ensure your beach condo, so we suggest you begin with talking to your current insurance company. See if they can offer coverage—bundles tend to be more advantageous. Otherwise, look for an insurance company in the area you are buying the condo at. Make sure you check out if they offer wind and flood insurance. Last but not least, take time and compare the premiums and benefits from various insurance companies.
Get some decorations
You don’t need to go over the top, but it’s a nice thing to get some décor—after all, it’s your vacation home! If you plan on renting it, spending on decorations is a good decision as it will attract tourists. Needless to say, you should go with a beach theme; opt for wooden showpieces, rustic furniture with blue and green color items. Make sure the décor has a beach vibe to it and keep it simple.
Spend the night, if possible
Some beach condos are available for rent. If that’s the case for one that you plan on buying, spending a couple of nights, there will be great help to make a decision. If you like how you feel, you should buy it. Spending several days is ideal. You get to learn a thing or two about the community, the environment, and neighbors. It also gives you the best input about the necessary upgrades that the condo will need in the future.
What are the best beaches to buy condos?
We want to give you some recommendations for the best places in us to buy condos. Here are the beaches where a beach condo is always a significant investment to make:
Panama City Beach
Panama City Beach is near northwest Florida, and it’s trendy amongst tourists. You can visit all year round and it’s full of tourists during the spring break. The fantastic ocean breeze makes it a wonderful place to relax.
Myrtle Beach, South Carolina
If you live in the southeast, myrtle beach is the ideal place to buy a beach condo. The rich culture, unique activities to spend your days, and the natural beauty are selling points for this destination.
You can fully enjoy the great blue ocean at Myrtle Beach as there are plenty of houses with boat docks. If you’re interested, you can pick your golf course. Let’s not forget the low tax and low price of real estate in myrtle beach.
The fantastic beaches near the Atlantic turn ocean city into a fantastic place to buy a beach condo. Many people know it for its 3-mile boardwalk. Don’t forget the restaurants, the amusement parks, arcades, and bars—tourists like them! We recommend you check out your wallet first, as the condos are a tad pricey. Since tourists come all year round, it will be worth buying a condo here.
The location is famous for its real estate potential. For the last three years, the appreciation has increased, but it remains affordable for most. You will need to put aside around 95 of your monthly income to cover the mortgage. We care to remind you that the national average is almost 16%. As a result, the condos and houses in Jacksonville are really affordable compared to other beach locations.
The average cost for a median house is $300k, but Virginia Beach does offer low appreciation rates. Regardless of it, the location still stands out as a fantastic financial deal for most buyers.
Frequently Asked Questions
Is it worth purchasing a beach condo?
A beach condo has the potential to be an excellent long-term investment. In a few years, you could earn several times what you paid upfront for the beach condo. Additionally, many owners of beachside real estate have the luxury of having a vacation home whenever they want to.
Can you make money on a beach condo?
One of the most important benefits of owning a beach condo is the potential rental income. Most of the time, vacation rentals give a much higher income than regular rental properties.
Why are beach condos so expensive?
When the demand is high and the supply is low, the price for an item will also increase. Many people love beach houses, especially waterfront properties, which means that the demand is high. If the beach property is waterfront, the supply is low, which leads to the high price.
What is a beach condo?
Any property on or near a beach is considered to be a beach house. Some people buy it as a second or a vacation home and commute to it on weekends or during vacation.
Is it challenging to maintain a beach condo?
All properties require maintenance, but a beach condo will need some extra care. The salty air, the sun, and the seagull waste make quarterly, biannual, and yearly maintenance necessary for things around the house.