As you research properties for sale on the coastlines of San Diego County, you’ll find that they sell for millions of dollars. It’s easy to read this price tag and label the beachfront property as ‘incredibly overpriced’. The climatic shocks beachfront properties face do their fair share on the prices in terms of mandatory flood insurance, management costs, and higher property taxes. But, this mustn’t keep you from exposing yourself to the therapeutic benefits of living near a waterbody. Let us get to spilling a handful of facts regarding the economics of buying an oceanfront home.

1. How to Buy an Oceanfront Home

An oceanfront home offers an excellent return on investment and a reliable income stream when rented out. But you’ll have to be particular about market timing when buying a beach house. As a buyer, you’ll find that a depressed economy makes for lower prices. However, you’ll want to consider the area history of floods and hurricanes, the property deed, and crime in the neighborhood, alongside house inspection to ensure the beach house remains a profitable investment through the years. On the other hand, if the prices have been rising, then that makes for the ideal time to sell your oceanfront property.

2. Borrowing Costs and Property Management

Maintaining a beachfront home comes with a different set of considerations than that of inland homes — you’ll have to consider sand, saltwater, and high winds. Yet, coastal homes remain a dream investment for developers. Mortgage interest rates are significantly higher for beach house properties, which does a number on the investor’s bottom line.
Property management is more than collecting rent checks or signing lease agreements.  As the owner of the beach property, you’re solely responsible for repairs and renovations. You could also consider employing a full-time property manager to stay on site to prevent any factors from eating into the profit margins.

3. The Beachfront Insurance

For an oceanfront home, you’re going to have to take your beachfront insurance seriously —other than the mandatory flood insurance for houses on the coastline. The homeowner’s insurance is more expensive than the coverage of the average inland house, but the savings are offset by higher real estate prices.
Renters must study the numbers on house bills, ones that go beyond cable, utility, or mortgage. Tax bills are bound to be hefty, given that the beach house is a high-value property.



Hunting down San Diego’s exclusive buyer’s agent near you? With a 70 miles long coastline and an incredible variety of beaches, Buyer’s Only Coastal Realty Office has multiple options for buying an oceanfront home and other real estate for sale in California. Apart from buying, we also deal in the selling of high-value property or luxury properties in CA. Scroll through the market report to never make a lousy transaction again!