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How Expensive is Owning a Beach House?


Though many real estate investors stay away from investing in beach houses, I’ve heard of more than one real estate investor who is willing to take the risk on a beach house. Depending on the market and amount you’re willing to invest, buying a beach house that pays for itself, may not be an impossibility.

So for those investors thinking about buying a beach house somewhere like the Jersey Shore or Outer Banks, one big thing to not overlook is maintenance. So we asked a real estate broker who specializes in beach houses, how expensive is owning a beach house?

How Expensive is Owning a Beach House?

Many potential beach house homeowners are interested in what exactly goes into upkeep on a home on the beach house. The answer to this question will definitely vary.

The reason the answer will vary partly will depend on your home’s location. Oceanfront homes definitely require more maintenance than homes located off the ocean or even the bay. Homes right on the water are always going to require additional maintenance.

If you own an oceanfront home, be aware that almost everything is going to rust. Also, it is going to rust much faster than you would ever think possible. If you plan on something metal lasting 10 years on the oceanfront, you will often be lucky if it lasts 5.

While there may indeed be a larger amount of reinvestment that has to happen with an oceanfront home, the rents are often higher helping to offset the increased need for upkeep.

Renting It? Plan For Extra Maintenace

A good rule of thumb is that a homeowner who is planning on using their home as a vacation rental should look to reinvest 20% of the gross rent. While many consider that a large percent, the long-term rewards make it worthwhile.

If your home is a vacation rental, you will definitely need to look into replacing things yearly. When renting out your home, things are going to need to be replaced, some as often as every year or every other year.

This is a necessity and all beach house homeowners must take this into consideration. Items as small as silverware and as large as heat pumps do break and will eventually require replacement.

With the beach house stretching across multiple counties, the dollar amount of taxes will vary. Taxes traditionally have not been nearly as high on coastal communities as other areas. This reason alone can make the beach house an attractive place to invest.

Should You Invest In a Beach House?

The answer really depends on your tolerance for risk and what you plan to do with it. Some larger beach house investments definitely can have attractive cap rates.

About US

We are a real estate investment services company specializing in off-market real estate in Pennsylvania, Delaware, Maryland, New Jersey, North Carolina, and Florida.

None of the content on this blog should be considered investment advice. Always due your own due diligence.