How Much Does It Cost To Buy A Beach House?

There is something quite majestic about the ocean that attracts millions of people every day. We spend weekends there during summertime and some of us, like myself, even choose to have our weddings on its sandy shores!

Purchasing a beach house enables you to enjoy the ocean and all its wonders to its fullest. It is the perfect location to create lasting memories. More importantly, it may even end up being your retirement home down the line!

The cost of an average beach house ranges from $300,000 to $885,000 or more. Upkeep involves mortgage payment, homeowner’s insurance, property taxes, home repairs, property management, security, décor, and furnishings. Location and the current season are also important.  

As with purchasing any form of real estate, there are essential things to consider, namely everything, so that you can prevent being caught off-guard by unexpected costs. Let’s take a look at the critical questions to determine the costs of buying a beach house.

How Much Does It Cost To Buy A Beach House

Whether you’re buying a beach house or a moon house, you’re still purchasing real estate. Prices usually fluctuate according to the current supply and demand of the market and season. The seasons have a significant impact on the price you pay or seek for your property. In certain situations, it may be as much as 10%.

Both the Christmas season and the school year significantly impact supply and demand in any particular industry, especially in real estate. Winter is not the preferable season to move, so these low-demand seasons are ideal for bargain hunters. Sellers are more willing to haggle on price, too.

When it comes to financial figures, expect them to be higher than usual. Beach house mortgage payments are generally 0.5 percent to 0.75 percent higher than a traditional home. Furthermore, homeowner’s insurance will be higher because it is directly affected by the type of property and its amenities.  

The difference in insurance rates is mostly mainly because flood insurance is frequently required. Flood insurance premiums of $10,000 or more per year are becoming more normal for Florida beach properties.

Property taxes are slightly different for each state and country or region.  Tallahassee residents may spend about $3,100 in annual property taxes (according to ATTOM Data Solutions, the county tax rate was 1.04 percent in 2019), compared to the national average of $3,561. (1.14 percent).

Lawn care, furnace tune-ups, and a fresh coat of paint are necessary for a vacation home, as are gutter cleanings and caulk repair. Experts advocate setting aside 1% of the entire purchase price of the house each year for home upkeep. It would amount to $3,000 each year on a $300,000 vacation house.

Is Beach House Pricing Affected By Seasons?

The seasonality of a market varies depending on where the beach house is situated. Each market has its unique characteristics. In locations like Phoenix, where the winter months are popular owing to an inflow of individuals from various regions, purchasing a second home is quite popular! 

In places like Denver, on the other hand, the cold winter environment contributes to the seasonality of the market by slowing down the ordinarily fast pace of home sales. Buyers and sellers with children generally do not want to uproot their families in the middle of the busy school year, so they wait until the end of the school year.  

According to studies, the busiest moving months of the year are June and July 31. June is recorded as one of the most active months, and July 31 is the busiest day. It proves that individuals are likely to be looking for homes near the end of a school year, closer to the time that summer starts.

What Does Every Beach House need?

Necessity will undoubtedly vary from family to family, but let’s see about putting the beach in the family, instead of the family in the beach, shall we? Unbreakable dinnerware, an outdoor shower, and slipcovers that prevent spills, stains, and fades can work wonders to save you time and money, and it even prevents headaches!

It’s essential to have a vast space for the warm sun and ocean breeze to enter. As such, large picture windows, sliding glass doors leading out onto the decks, patios and porches will make it easy to pass drinks and snacks to friends and family!  Ensure that the dinnerware is unbreakable.

Any wood flooring or carpet may be irreparably damaged by sand, sea, dampness, and humidity. Make sure your flooring is long-lasting. Today’s laminated flooring comes in various designs that mimic the look and feel of hardwood or ceramic tile. The surface is highly durable and resistant to stains and fading.

Does The Value Of A Beach House Appreciate or Depreciate?

Purchasing a beach property is an overall lucrative investment that can provide a fantastic investment return when appropriately managed. Many beach house investors buy houses and then rent them out during high tourist seasons for a steady income stream.

Many beach-home investors report that their rental revenue during the winter months covers all of their costs for the year. During the off-peak season, they may practically live in the house for free. Beach houses are always in demand for family reunions and social gatherings, both by the locals and the tourists.

Beach houses will always be in demand, if not by residents, then by tourists, especially when it’s in an area famous for its attractions such as Disney World. In addition, inflation generally raises the value of real estate, making this a great investment. As a result, your beach property will most likely be worth a lot more in the long run.

Tax Breaks: Owning A Beach House As A Second Home

If you’re considering purchasing a second property for holidays, rental income, or ultimate retirement, taking advantage of all available tax benefits makes financial sense. When owning a second home, tax deductions on mortgage interest, property taxes, and rental payments can be considerably lower.

Both s

ingles and married couples filing together can usually deduct all interest on mortgages up to $750,000. It’s true for any personal house, whether it is your first or second. The mortgage must be a secured loan on a qualifying house that you own, and you must itemize your deductions by filing Schedule A to be eligible.

Property rented for fewer than 15 days is considered a personal residence, meaning no deductions for rental expenses; more than 14 days is classified as a rental property. Private residences used more than 14 days but seldom rented, mortgage interest, and property taxes can be deducted, but you cannot claim rental losses.

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What Are The Cons Of Owning A Beach House?

The beach life is undoubtedly excellent, but there are also cons to owning a beach house. Saltwater and saltwater spray will significantly raise maintenance expenses. Electronics like televisions will need to be serviced more often due to the effects of corrosion that the salty air and coastal climate possess.

Depending on where you are, storms may cause devastation. When people are exposed to the elements, beach sand will be dragged in or blown in, so you will spend more time cleaning. Furthermore, the truth is the likelihood of hurricanes and floods is a reality, so ensure that you have insurance and plan for an evacuation if needed.

If you’re big on your privacy, it may be essential to consider that you may have strangers or tourists in front or around your home. Furthermore, insects tend to love the beach just as much as we do, so don’t be surprised to find them making themselves comfortable in your beach house.

Important Questions To Consider Before Buying A Beach House

As with any big decision in life, it’s essential to consider how it will affect your life and those around you. Consider your time wisely, and see how much time you can afford to allocate to traveling. If your beach house is several hours away, you will need to hire a local property management company to assist you with upkeep and maintenance.

Are you planning on renting the property? A family seeking to organize a seaside family reunion with twelve people will not be interested in a two-bedroom property, so make sure you know whether you will rent your home during the busy season before you buy.

Living on the coast for an extended period will subject your home to some form of weather event. Your thankful, future self with thank you if you prepare the right insurance coverage. Flood insurance coverage may vary depending on where your vacation property is located and if it is in a high-risk area.

What Are The Best Places In The U.S. To Buy A Beach House?

Cape Hatteras boasts numerous homes that can sleep 6-16 people. Furthermore, with a cap rate of 8.6 percent, it’s a great place to connect with friends and family.  Ocean Shores has a healthy mix of coastline and train hubs to visit places like Oregon and Seattle. The cap rate of this beautiful destination is 7.8 percent.

Dauphin Island’s magic lies in its close-knit community of tourists and locals. It’s trendy and has a cap rate of 7.8 percent. New Buffalo is peaceful despite being close to a highway. With its stunning Michigan Lake and cap rate of only 7.1 percent, it’s a beautiful purchase.

Corolla is an excellent choice for relaxation and local shopping. Wild horses also grace the area freely. It has a cap rate of 6.9 percent. Several breathtaking beaches surround Kauai South. If you fancy it, playing a game of golf is also an option. Corolla’s cap rate is at 6.2 percent.

What Kind Of Upkeep Does A Beach House Require?

An ocean region can have quite a significant impact on the inside and the outside of a beach house. Because the air is corrosive, your electronics and some metals will need to be replaced more often. You could certainly opt for using stainless steel as an alternative, but regardless you should be prepared for emergency costs.

As for the outside of the beach house, the lawn also needs to be maintained, and any repairs required due to corrosion have to be added to the list of maintenance costs. Direct sunlight can also cause fabrics to fade, so it would be wise to place outdoor furniture inside and stored it away when they are not being used.

Consider hiring a property manager so that you can have peace of mind. They usually have access to a wide network of contacts that can assist you in case of unforeseen emergencies, like your neighbor calling to let you know your house is flooding!

Preparations For Buying A Beach House

Failure is a harsh teacher, and it seldom feels any remorse when we are taught. There are a handful of expenses involved in purchasing and maintaining a beach house, and you don’t want to be caught unaware. Create a detailed budget, ensuring that you cover every worst-case scenario from the highest to the lowest potential of expenses.

Ensure that you carefully scout the current market. What season are you looking to make your purchase? If you’re planning on renting it out, would it accommodate their needs as locals or tourists? The neighborhood can also have a massive impact on the pricing and renting potential of a property.

Lastly, take the time to find a professional who can inspect the beach house to ensure that everything is in order. Get a knowledgeable estate agent who can help you navigate safely through the purchasing process, and more importantly, fetch you the best deal you can afford.


Purchasing a beach house is pricier than a traditional home. The majority of expenses are made up of maintenance costs, insurance, and taxes. However, don’t be afraid to become comfortable with everything; that way, you will feel a lot better when you finally make your purchase! All the best with your beach house purchase!