Important Factors To Consider If You're Considering A Beach Home

Buying a vacation property can be a great investment. Not only will you and your family have a place to vacation multiple times during the year, but you can also use the property as an investment, renting it out to other families to bring in additional income. Of course, investing in a beach home that can be used for vacation and as an investment property requires some budgeting and planning. Here are a few things to consider if you are thinking about buying a property at the beach.


When it comes to any topic in real estate, location is key. You may believe your decision to buy a property at the beach is the only thing you need to consider when planning to buy real estate at the beach, but that is not necessarily true. You may be surprised to learn the differences in price between an oceanfront or ocean side property versus a home that is a few blocks off the beach.

Even though it will be more expensive, a property right on the beach with a view and direct beach access may be easier to rent to other vacationers. This can make your property a great way to earn income throughout the year.

If you want a property at the beach, but need something more affordable, opt for a home a few blocks away. Even though you and your renters will need to walk a bit to the actual beach, the property may still offer a view of the ocean.


If you are paying cash for the beach home, worrying about the financials may not be something you need to do. However, most people do need to secure a mortgage to buy a vacation home. If you already have a mortgage on your main home, securing a mortgage on a second property requires more planning due to the different requirements lenders have.

Because you will be accumulating a higher amount of debt when buying a mortgage for a second home, lenders will have stricter credit requirements. You will need to have excellent credit in most cases before you will be approved for a second mortgage.

You will also need a down payment of at least 10 percent for a vacation home. If possible, plan on paying a 20 percent down payment to avoid private mortgage insurance.

Finally, homeowner's insurance on beach properties will be more expensive compared to insurance on

Even though proper planning is essential, buying a beach home for your vacation needs or as an investment property can be a great decision. This guide will help you with the process.