Summer vacations by the beach are always in style. If you are looking to expand your property rental business the thought of owning a beach house may have occurred to you. You may opt to buy your own stretch of sand by the beach and rent it all year round naturally making most of your income during the summer as your main source of income. Or you can opt to use your beach house during the summer for your family vacations because why not, and rent it out during the winter months.
Whether you choose to run your beach house as your primary source of income or otherwise, read on to find out how to better optimize your investment.
According to BusinessWire, the vacation rental market is expected to grow by $62.7 billion between now and 2024, so the best time to invest in a beach property and make money is definitely now.
Bear in mind that opting to rent a beach holiday home for a few weeks every year during the summer can actually cost you about the same amount as the annual mortgage you will have to pay for your own beach house therefore it makes sense to buy your own beach house. As an added bonus you can definitely make more than your mortgage amount when you rent out your property just through the summer. If you rent it out during the winters as well you can make much more.
However, to make the most of your investment, it is important to know what type of beach house is ideal for your requirement of a primary or secondary source of income. This article on the best places to buy a beach property in 2022 will help you make the best decision with regards to your beachside real estate investment.
Consider your ultimate goal of buying the beach house. Do you want to own a property for your personal use during the summer that you can rent out during the rest of the year? Or are you looking for a property that you can rent out as a short-term rental throughout the year?
If you are looking to buy a beach house mostly for your personal use during the summer then you have to buy a property that you absolutely love. However, if it is solely for business then your personal preference becomes less important and you must give more consideration to other factors such as location, cost, amenities, etc.
Furthermore, your financial goals for the place must also be taken into consideration when purchasing your beach property. Are you looking to make it your primary source of income or will it be a secondary source?
If you are looking to get a good return on investment via your beach house then you need to come up with a strong business plan on how you are going to make do during the winter months when business is slower. So it would make sense to buy the kind of property where income during the peak periods will more than make up for your off-peak periods in winter.
An additional trend to look out for is that more and more people such as digital nomads are looking for places away from home where they can spend more time, and not just during peak seasons and this is not expected to change any time soon.
Celebrated for its white quartz sand and clear blue-green waters, Gulf Shores is a mecca of pure paradise on the Alabama coastline. Apart from the sandy shores, there is plenty to experience in this family-friendly destination such as amusement parks, award-winning restaurants, water sports, and championship golf to entertain people across all four seasons. Cap Rate: 10.2% Median Home Sales Price: $402,905 Average Annual Gross Rental Revenue: $56,198
Located at the northern end of North Carolina’s Outer Banks, apart from its pristine beaches Corolla is also popular for its unique shopping, high-end restaurants, and entertainment. With minimal development, and with access to salty waves and maritime forests, it is an ever-popular choice for those seeking a rejuvenating getaway. With a large part of its community being built after the 1990s Corolla boasts a unique juxtaposition of modern amenities with local treasures Cap Rate: 9.5% Median Home Sales Price: $608,953 Average Annual Gross Rental Revenue: $77,971
Also in the Outer Banks of North Carolina is Hatteras Island. It is made up of two lighthouses, seven villages, and the Cape Hatteras National Seashore. The area offers a more rugged experience - a place to relax, ride horses on the beach, climb a lighthouse, or just stretch out by the beach and experience calming sunsets. Cap Rate: 6.4% Median Home Sales Price: $482,447 Average Annual Gross Rental Revenue: $45,968
Navarre Beach is a quaint beach community with big commercial appeal located just east of Pensacola. Here, visitors are mostly found sunning and swimming in the area’s emerald waters. According to Visit Florida, guests often describe Navarre Beach as “a transcendence into paradise” due to the town’s calming, zen-like state. Cap Rate: 6.6% Median Home Sales Price: $382,392 Average Annual Gross Rental Revenue: $43,202
Also in Florida is Daytona Beach, home of the least expensive vacation properties on this list. Despite the more affordable prices the town provides ample options for the guests to enjoy apart from laying in the beach from scuba diving to golfing, to shopping and spas, to birdwatching and hiking, Daytona Beach has it all. Cap Rate: 6.5% Median Home Sales Price: $247,960 Average Annual Gross Rental Revenue: $31,913
Port St. Joe labels itself as a “small town with a big heart.” Despite being small, Port St. Joe has a healthy cap rate and postcard-inspiring views. Apart from that this city offers a wide range of things to do such as beaches, parks, a marina and a walkable downtown of shops and restaurants. Cap Rate: 6.5% Median Home Sales Price: $247,960 Average Annual Gross Rental Revenue: $31,913
Galveston Island is a barrier reef island with 32 miles of shoreline with weather that is so mild that every day can be a beach day. Galveston is noted for its well-preserved Victorian architecture. Some of its top attractions include the Moody Garden and Schlitterbahn Waterpark. Cap Rate: 6.4% Median Home Sales Price: $340,559 Average Annual Gross Rental Revenue: $43,981
The amount of money you can earn with your beach rental depends on many factors, such as location, the number of listing sites you use, the condition of your property, etc. Whether you are looking at purchasing a full-time short-term rental or a property to rent out during just the winter months there has never been a better time to own your own stretch of sand by the sea.