Is Buying a Beach House a Good Investment?

Posted by Royal Concierge on Monday, November 23rd, 2020 at 9:08am

Everyone has dreamed about owning a beach house at some point in their life. It’s an achievable reality if you have the money, the credit score and find the right vacation rental management group to help you generate investment income for the property. Additional bonus? You can pick and choose when you want to enjoy the property and make money the rest of the year, turning the home into a rental income stream.

No matter what kind of economy we are in, buying a beach house is always a good investment when you allow a rental management company to handle the property for you. Why? You can generate income, as well as money for the mortgage payments, taxes and homeowners insurance.

What Should I Look for In a Beach House?

When you start your beach house-hunting search, it’s always important to keep the following thoughts in the back of your mind:

  •      Location, location, location. Make sure the vacation property is in a desirable part of town where people want to head to the beach. The closer the house is to the water, the more desirable it is and the more money you will make.
  •      Foundation and construction. Beach houses need to be durable and able to withstand Mother Nature’s harsh storm conditions. You should understand the building codes and elevation requirements. Older homes may be ground level and be grandfathered in under older building codes. Newer homes comply with new elevation requirements. These may be built on wood or concrete pilings.
  •      Check the rental restrictions of the community, county or township. Make sure your beach house can be rented and what the rules and regulations are prior to purchasing.
  •      Plan for high insurance rates. The cost of insurance and mitigating the risk of loss can be relatively expensive.
  •      Don’t forget hurricane insurance. These are also known as wind insurance policies and they come with a separate deductible.
  •      Remember flood insurance. Beach houses are in flood zones, which require separate flood insurance policies. Research ahead of time to see what type of flood zone the property is located on in the parcel maps available with the city and county.
  •      Strong and secure roofs are vital. Make sure the roof is in good condition and is wind-resistant for your insurance policy.
  •      Windows are important. The windows should be high impact rated to withstand high winds and strong rains

We realize some of the above suggestions may be overwhelming. Remember though that the amount of money you can generate monthly for renting out your house in peak season can offset the larger costs involved with buying a beach house. 

How Much Does It Cost to Buy a Beach House?

How Much Does It Cost to Buy a Beach House?

Buying a house is expensive and it also depends on the location where you are buying. You must factor in the costs involved with owning a beach house depending on the location you choose.

For instance, a beach house in Florida is going to be more expensive than buying a vacation rental home in North Carolina or even a home on the shores of Alabama.

Likewise buying direct beach frontage is more expensive than buying a home within walking distance or a short drive. Average prices are a blend of locations.

As a guide, here is a rough estimate of how much it costs to buy a beach house in various beach towns around the country according to data provided by Vacasa Real Estate in 2019:

  •      Ocean Shores, Wa: $239,400
  •      Myrtle Beach, SC: $257,000
  •      Panama City Beach, FL: $419,900
  •      Gulf Shores, AL: $409,900
  •      Galveston Island, TX: $350,000
  •      Kauai, HI: $696,028
  •      Ocean City, MD: $285,000
  •      Key West, FL: $817,000

Please keep in mind that these numbers vary by location, number of bedrooms, amenities and many other real estate factors.

The great part about buying a beach house in Sanibel Island and Captiva Island or Naples FL beach houses is you have options both directly on the water and further inland near desirable shopping districts. While beachfront homes can rise to seven figures for beachfront property, there is so much variety in places like downtown Naples or Sanibel and Captiva Islands that buying a home or other vacation rental property in Southwest Florida is an ideal opportunity right now.

How Much Can You Make Renting a Beach House?

Purchasing a beach home isn’t an opportunity to get rich quick. It’s a long-term investment that over time, through vacation rental income and real estate appreciation, can make money and allow you to hold onto a long-term investment.

Even better, buying a beach house should be a part of a long-term plan that allows you to visit the home more frequently as you approach retirement age. Even though it’s not your primary residence right now, you may want it to be more than just a short-term property as you get older. That plan also affords you the capability to make the beach house your retirement home permanently or to keep the vacation home in a rental pool when you are retired to give you a continued revenue stream upon your retirement.

How much you can make renting a beach house all depends on the location of the home, the square footage, the desirability and demand of the beach house. A big factor in how much you can make also depends on the successful property management of your beach house. You need a vacation rental home management company and must feel secure with your rental contract agreement. It’s very important to choose a vacation rental home management company you can trust. 

Tips for Buying a Beach House

Tips for Buying a Beach House

Buying a second home, especially a beach home that you plan to rent out, can be confusing. There’s a lot of research and detail that goes into buying the perfect beach house that will work for you.

We have some tips that will help you make your decision earlier when buying a beach house.

How to Maintain a Beach House

Do you know the best way to maintain a beach house? If you plan on using your beach house investment to gain vacation rental income, the best way to maintain the home is to have a vacation rental management company oversee the general maintenance of your beach house.

Inspect Your Roof

Owning a beach house near the water means your roof sees more than its fair share of wind, rain and saltwater. In Florida, the rainy season from May through October can also mean daily deluges on your roof. Check your roof and shingles regularly to avoid any trouble and water intrusion.

Clean Your Beach House Windows

Wind, rain, and saltwater can regularly affix itself to beach house windows, creating a hazy, slimy mess that can damage your windows if it’s left on the surface for long periods of time. The last thing you need is the metal window frames to start rusting out from saltwater. The beach house windows should be cleaned, rinsed and checked regularly to maintain that beach house view and keep our windows clean.

Clean the Siding and Walls

Same as above. Frequent pressure washing and cleaning of beach house siding and stucco should be done to keep the saltwater grime away and leave your beach house looking shiny at all times for vacationers.

Keep Outside Metal Fixtures to a Bare Minimum

Saltwater loves to corrode metal. Make sure you keep all metal fixtures like lighting clean and have fresh coats of paint on all metal fixtures if possible. This will keep corrosion at bay. When any metal fixtures need replacing, consider plastic replacements that will reduce your beach house corrosion problems.

Where to Buy a Beach House in Florida?

Where to Buy a Beach House in Florida?

There is a ton of variety and plenty of beach house communities to choose from on the Florida peninsula. When it comes to the best value, variety of activities and Old Charm Florida feel, we think Southwest Florida in the Sanibel Island area is hard to beat.

Everything from world-class golf courses, to luxury shopping and stunning beachfront, is in Southwest Florida and the surrounding areas of Sanibel Island, Captiva Island and other beach communities.

Nestled on the shores of the calm Gulf of Mexico waters with pure fine-white sand exists a Florida beach experience that can’t be beaten elsewhere. Take a look at the Sanibel Island and Captiva Island area for your future beach house property.

Find a Beach House for Sale Today

Now that you know the Sanibel Island area is the best place to buy a beach house, it’s time to look at Sanibel Island beach houses and Captiva Island real estate for sale and choose your new beach house. You can also do a broader search of Naples beach homes for sale.

Once you have the new beach house of your dreams, you need to do your homework and find a vacation rental management company that can handle everything that needs to be done to your beach house.

A Royal Shell Rental Management property is the best way to keep your income stream moving and your beach house secure. Royal Shell handles everything from the reservations, your beach house listing on our website and all of the rental licensing and record-keeping that comes along with vacation rental listings. We also monitor the upkeep of your property so you can rest easy that your property is safe.

Buying a beach house is a lot easier when you trust a company like Royal Shell to handle everything for your vacation rental, including:

  •      Online booking 24/7
  •      Effective marketing of your property
  •      The successful growth of your property on the rental market
  •      No marketing fees

So what are you waiting for? Use Royal Shell’s home finder today and contact us at 1-855-242-9926!

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