What To Consider When Buying Oceanfront Real Estate
Posted on: 9 July 2020
There are many things to consider when buying any piece of real estate, especially those bordering the coast. These oceanfront properties are generally considered to be high-quality and are frequently worth twice as much, or more, as the average inland American home. Therefore, it's important to do your research and understand the real estate before you choose a property.
Property Taxes
Oceanfront property is expensive on its own well before needing to pay a monthly mortgage, insurance, or other costs. As such, property taxes on the estate will almost certainly be higher. If you have any flexibility in where to buy the oceanfront property, consider states with lower property taxes. The lower the taxes, the less more money you can save. This can especially be helpful for oceanfront property in general as the sea-salt, wind, rain, and possibly even hurricanes can eat into your maintenance budget.
Climate Concerns
Oceanfront real estate is at a higher risk of a variety of environmental concerns no matter where on the east or west coast you choose to buy. Regular wind and rain can damage the exterior, and salty air can corrode the inside and outside of metal such as pipes and railings. Sand can get practically everywhere, especially with old windows that have shifted over time to allow cracks. Flood insurance is absolutely necessary, and hurricane-prone areas are especially at risk. This corrosion over time can affect the value of the property unless you are willing to put the extra effort in.
Long-Term Value
If you are looking into oceanfront real estate as an investment vehicle, you will need to double-check that the specific property you buy will increase in value over time. Towns dependant on tourism can tank property values in bad years, and not every town recovers. Beaches with poor trash policies can get less business over time as well, and areas with frequent hurricanes are especially risky. Finally, ocean levels are on the rise, and as time goes on your land could not only have it's space be eaten up but also it's value. Not everyone with the money to spend will want an increasingly flood-prone property.
Overall, it's important to do your research on the risks of any oceanfront property you are considering, especially in regard to the location of the real estate. You will need to prepare for the property taxes of the state the real estate is located in and the long-term effects of salty wind and rain on the property itself. Finally, the long-term value of the real estate could be affected by the nearby municipality's long-term health and the ocean level itself. Consider all factors carefully before buying any piece of real estate.
For help looking for oceanfront real estate, contact a real estate agent.
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