Buying a beach house definitely comes with its perks, but there’s a lot of work that goes into it. You’ll need to research the area, plan for expenses, manage the property, and pay for the appropriate insurance.

Beach houses can provide a beautiful vacation getaway, an additional source of income, and an excellent return on investment. If you’re thinking about buying a beach house, you’ll need to weigh all of the pros and cons before making your choice.

Maintaining an investment property can be a lot of work—that’s why the

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How to buy a beach house

Choosing to buy a beach house is a big decision, and there are plenty of hoops to jump through before you can reap the benefits. Here are all the steps you need to complete before you can relax beachside:

Research locations: Spend time in the areas you’re considering to learn the lay of the land and figure out what is important to you.

Learn about the neighborhood: Talk to the neighbors of properties you’re looking at to get a feel for the environment. It’s important to be compatible with the neighborhood!

Hire an experienced realtor: A local realtor will know everything about the area, like history, on and off seasons, and weather patterns.

Complete a home inspection: A home inspector will be able to tell you about any wear and tear on the house, as well as how often flooding occurs. A land surveyor can also help determine how stable the land is.

Stick to your budget: Consider what is within your means and what makes sense financially.

Key Takeaway A lot of preparation goes into buying a beach house, and you must consider multiple factors before making a final decision.

Costs of buying a beach house

Just like buying a traditional house, there are plenty of expenses related to real estate for a beach house. You’ll need a 20% down payment for the mortgage—prices will vary depending on the area, market, and housing supply and demand.

Keep in mind that interest rates for beach house mortgages are typically higher than rates for primary homes.

Beyond the mortgage payment, you’ll also be responsible for a significant tax bill since beach houses usually have high value. If your beach house is an income property, you will need to pay for advertising and marketing to draw in renters.

In the worst-case scenario, you would also have to deal with legal costs if there are disputes with tenants.

Insurance for a beach house

Insurance for beach houses is much more expensive than insurance covering a traditional house. Homeowners insurance prices went up in the early 21st century, especially on the East Coast due to extensive hurricane damage in the area.

One main factor in the price of beach house insurance is mandatory flood insurance. It’s common for beach houses in Florida to have $10,000 in flood insurance coverage, while other states on the East Coast enforce lower premiums. Insurance in California is usually cheaper, but the real estate costs are higher.

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East coast vs. west coast: living on one of these coasts will cost you extra

Managing the property

A beach house may seem like all fun and games, but you’ll be in charge of the entire property as the owner.

You will be responsible for all repairs and maintenance, including painting, roofing, pest control, and landscaping. There are even state-specific rules on providing air conditioning for renters, so make sure you read up on your state’s laws.

It can be difficult to manage all of this by yourself, which is why most beach house owners hire a property manager. These managers handle the day-to-day tasks, advertise the beach house to potential renters, and sign off on leases. Most property managers are paid between 8% and 12% of the rent.

How to save on homeowners insurance

Both beach houses and full-time residences need homeowners insurance, which can get expensive quickly. But you’re in luck—licensed insurance broker and comparison app

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Can I afford a beach house?

Beach houses can cost a lot of money, and you shouldn’t buy what you can’t afford. You’ll need a 20% down payment for the mortgage, as well as enough to pay for insurance and maintenance. Your individual finances will determine if you can afford a beach house.

How do you buy a beach house?

To buy a beach house, you need to weigh all of the pros and cons. Consider your budget, research the area, and figure out how to get a return on your investment. If you decide it’s worth it, you’ll need a mortgage, down payment, insurance, and marketing if you decide to rent it out.

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