A beach investment property can be a fantastic earner. Generally, travelers are willing to shell out more and pay a premium to stay at the beach over inland destinations. Even better, it’s not uncommon for beach homes in popular destinations to be booked out entirely during peak season.
Warm sand, soothing ocean waves, fresh air in your lungs. Owning a piece of coastal property isn’t just an asset for your portfolio, but also your well-being. Not to mention the seemingly endless activities and adventures—surfing, swimming, paddleboarding, boating, biking, and more.
A personal seaside retreat
Family beach bonfires at sunset. Early morning jogs on the shore with your dog. Having your own beach house can make this all happen. Plus, there’s no better place to stash your water toys, such as paddle boards, surfboards, kayaks, and beach cruisers.
A future retirement home or sizable nest egg
Years from now, your home’s value could be up and your mortgage payments paid down. Consider investing in upgrades and amenities that can boost your appreciation, such as a pool or a hot tub. When the time comes, you can cash in on the profits from selling your home. Or, kick back and enjoy your well-earned retirement in your beach house.
Tax benefits
If you rent out your beach house for more than 14 days a year, you may be eligible for vacation rental tax deductions. Possible tax-deductible expenses include HOA fees, cleaning costs, property management fees, and furniture and supplies. We recommend reaching out to a CPA to help you understand the vacation rental investment tax codes and tax laws for your state.
While all property increases in value over time, depending on where it is located, a beach house could appreciate faster than traditional properties. This means that even if you decide to sell your property after a few years, you should still be able to get great resale value for it.
With a well-kept property, in a popular destination, with sought-after amenities—yes, it's possible for a beach house rental to pay for itself by offsetting your mortgage and other expenses.
Buying a beach house can bring an excellent return on investment, a reliable income stream, and access to a delightful vacation spot. Many beach house investors purchase homes that they subsequently rent out during peak tourism times.
For a primary house, it's recommended to put aside 1% of the home's value for annual maintenance costs. However, for a beach house, which requires more regular maintenance, you might want to consider budgeting for a little more. Being exposed to the ocean's elements can take a toll on a house.
Introduction: My name is Corie Satterfield, I am a fancy, perfect, spotless, quaint, fantastic, funny, lucky person who loves writing and wants to share my knowledge and understanding with you.
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