Owning beachfront property is a dream for many. After all, who wouldn't love being able to enjoy sweeping views of the ocean from their living room? And how nice would it be to walk directly out to the beach from your own backyard?
Still, if you're in the market for a beachfront home, there are some very special cost considerations you'll want to keep in mind that could ultimately impact your buying decision.
1. HOA and Related Fees
Unless you're shopping for a beachfront single-family home, there's a good chance that the condominium or townhouse building you end up in will have a homeowners association (HOA). The purpose of these associations is to handle general maintenance and upkeep of the property so you don't have to. This may include caring for landscaping in common areas, keeping the exterior of the building clean and freshly painted, and possibly even maintaining the beach itself.
Some HOAs may also provide on-site amenities, such as swimming pools, gyms, and spas. These amenities can really help you enjoy the resort lifestyle, but they will come at a premium — so be sure to inquire up-front about HOA fees to avoid surprises after you move in.
2. Additional Insurance Needs
By their very nature, waterfront homes tend to be more susceptible to damage from the elements. As a result, you may need to purchase some additional insurance when you buy a beachfront home. This may include not just flood insurance, but extra protection from high winds caused by tropical storms and hurricanes as well.
Be sure to shop around for this type of coverage ahead of time so you have an idea of how much protection your home will need and how much it will cost you.
3. Property Management Costs (For Rentals)
Many people who purchase beachfront homes turn them into income-generating properties by renting them out on occasion. If you're thinking about buying a beachfront property for investment purposes, then you'll probably need some help from a property management company while you're not there. A property manager will take care of finding renters, maintaining your home, and getting it ready for your guests so you don't have to.
Property management companies can help you maximize the profits on your rental. However, these services can cost a pretty penny, so this is definitely something you'll want to factor into your budget before you begin shopping for a beachfront home.
To learn more about beach or waterfront homes for sale in your area, contact a realtor.