There’s something to be said for owning a home at the coast. The sound of crashing waves, the fresh ocean mist, and prime real estate are hard to duplicate anywhere. Imagine expansive panoramic views of the ocean, yachts, ships, immaculate sunrises, and the welcome embrace of nature at its pristine best. It’s a dream come true, there’s no doubt about it. But coastal property values can be heavily inflated, and a nightmare to contend with if you don’t exercise due diligence.
A beach home can be an idyllic paradise under the right circumstances, but it can also present problems that you will never encounter with inland properties. Today, we explore the merits of coastal property homeownership. These rules apply whether you seek value as a homeowner at the coast or as a landlord of an investment property. Either way, it’s tempting beyond compare. The overwhelming beauty of coastal real estate makes for a compelling argument. As a first-time homeowner, you may be tempted to jump in at the deep end, but caution is advised.
There’s another layer to coastal living that’s worth exploring: access and opportunity. This real estate option is no longer expressly reserved for old-money types; anyone is welcome to explore the possibilities of coastal homeownership. Perhaps you’ve served? If so, programs like Veterans Home Buying make that dream of a seaside home far more attainable than many realize. The VA home loan program offers eligible buyers competitive rates and the ability to purchase without a down payment.
That’s a potent edge in markets where property values are often sky-high. It’s also a reminder that homeownership isn’t merely about buying space; it’s about securing peace of mind. And that is priceless. For veterans, owning a coastal property is so much more than a lifestyle choice; it’s a well-earned reward that marries stability with the freedom of the open sea. And yes, it’s certainly possible if you follow the golden rules.
What type of neighborhood are you moving into?
Everyone wants a beautiful beach home, but nobody wants to deal with raucous parties, drinking, and attendant behaviors that go on well into the early hours every single day. A spring-break paradise is probably not ideal (at least for part of the year). Look at the zoning legislation, check public records, and understand the nature of the community that you are moving into. A sleepy town, a party zone, or an otherwise heavily restrictive environment can put a damper on your expectations.
Banking on rental revenue to cover costs
Many aspiring homeowners figure that their tenants will pay for their investment. However, you cannot rely on tenants to cover 100% of the costs of coastal real estate as demand for coastal property ebbs and flows. There are peaks and troughs, as well as weather and climatic conditions to consider. If the rental market becomes saturated and there are too many beachfront properties on the market, you may find yourself in a spot of bother. Periods between rentals are harrowing; don’t forget the management fees if you’re using realtors and professionals to list your property and find new tenants.
Set a budget and stick to it
Many of us get swept away in the moment. We see something we want, and we go for it. We lose all scruples and make an emotional purchase based on how it makes us feel. But emotions fade, and financial commitments have long-term repercussions. If you overextend yourself, you severely curtail your ability to make payments on your mortgage. Never buy more house than you can afford – that’s one golden rule to remember. Even if you can make the mortgage payments comfortably, can you keep up with the continuous maintenance that coastal properties require?
Property insurance is the grudge purchase you need
Here’s the thing about coastal real estate insurance: it is costly, particularly in states like Florida, which are prone to hurricanes and severe storms. In fact, anywhere at the coast is going to be impacted by gusts of wind, water, salty conditions, and the elements. If you are in the market for a short-term vacation rental and you don’t have the necessary insurance, you may end up paying big over time. This type of crippling expense often creeps up on unsuspecting homeowners. For example, you may be required to purchase supplemental hurricane coverage in addition to homeowner’s insurance. Flood insurance is an absolute requirement for beachfront properties in states like Florida. If your wallet cannot take the squeeze, look elsewhere.
