Many people dream of owning a beachfront property. The biggest thing holding people back is that they can’t afford it, since beachfront properties are particularly expensive. But there are other considerations to make before diving into a purchase, even if you think you can afford it.
First of all, you need to know why you want to own a beachfront property. And no, just being able to say you own it is not a good reason. Do you love the beach or the ocean and want to live right on the sand? Do you want a vacation property? Are you just looking for a lucrative investment? Renting out beachfront property is actually not easy. Being expensive to buy means it’s also expensive to rent, so most renters are going to be short-term vacationers. Your home isn’t going to be consistently occupied unless you’re the one living there, in which case you aren’t earning rent. But if you can afford to keep it, the return on investment when you eventually sell is going to be quite high.
Another concern is the weather risks of beaches. These areas are often significantly more prone to heavy winds and flooding than inland areas. Check out the area, be aware of the risks, and make sure to purchase insurance that protects against wind and water damage. And even if the building itself isn’t damaged, shoreline erosion over time can reduce your property values.