It’s cool to own a beach house but buying one can entail a huge investment. Once the deed is in your hands, the money outflow doesn’t stop there. There’s still the maintenance costs to consider, given the fact that you may or may not be living there on a daily basis. In the end, you may either be thanking your lucky stars for your beach house purchase or suffering from buyer remorse as your wallet cries in pain.
This is why it is important to carefully study all your options before taking the plunge of buying a home with a spectacular beach view. We prepared this list of considerations that could help you in your decision-making:
Your current financial status
A beach house will have a higher price tag than your typical inland property with similar amenities and size. And since the former is usually used as a rental or secondary/vacation home, you can expect mortgage interest rates to also be higher than the home you have as your residence. That’s a big ouch on your pockets if you’re not financially ready.
Home insurance costs
A beach house is more prone to damage from the elements primarily due to its proximity to a body of water – especially an ocean. With the Atlantic Ocean pounding on Virginia Beach’s coastline constantly, the need for home insurance is much greater. Calculating the risks between a home in Virginia Beach and another in Roanoke which is far inland, insurance costs for the former range between $1,075 and $1,210 while for the latter, it’s between $808 and $900. That’s not even taking into account the mandatory flood insurance for waterfront homes!
Maintenance of the property
Whether used as a rental or as a vacation home, a beach house will command higher taxes because of its nature as waterfront property. Then if you’re having the beach house rented out, you’ll be constantly on marketing mode – and that, too, will cost you. Plus, you also have to be sure that the house is livable for potential tenants so you will have to be on top of its upkeep. If something breaks, that’s usually on you.
You may want to hire a property manager to see to your beach house’s maintenance. However, do remember that this professional will be slashing as much as 12% from rent payment to be paid to you.
Having a beach home can be your best and most profitable investment decision yet, as long as you manage it right. Just imagine the number of tourists coming to Virginia Beach during peak seasons with one thing on their minds – the need to live near the coast for the most epic vacation ever. They’ll be coming in droves and looking for beach homes like yours. Then during non-peak seasons, you and your family or friends can maximize your intake of Vitamin Sea in your very own beach house!
It also matters to talk to a real estate agent who specializes in beach properties to get the best advice on buying a beach home, especially one in Virginia Beach. They can provide you with several options given your special considerations.