What every prospective buyer should know before buying a beach house in the Myrtle Beach area.
It’s the true American dream! You work and you save your entire life so that one day you can buy your own slice of beach front property. Every year more and more people are turning this dream into a reality. If you’ve ever thought about buying a beach house, then Myrtle Beach is the place for you.
In a recent report by Vacasa, North America’s largest vacation rental company, the Myrtle Beach area was named as the second-best place in the United States to buy a beach house. Vacasa looked at vacation rental markets based on capitalization rates which factors in gross rental income, operating costs and historical costs. Myrtle Beach earned a cap rate of 7.4% with a median annual gross rental revenue of nearly $33,000.
Buying a house at the beach is one of the most exciting and daunting things you will ever do in your life. At Better Homes and Gardens Real Estate Elliott Coastal Living, we are committed to making the home buying process a little less intimidating. We want to help you find the home of your dreams and make this experience as easy as possible.
Whether you’re buying a beach house to live in full-time or just rent out as a source of revenue, here are a few things that every prospective home buyer should consider before buying a house at the beach.
Why do you want a beach house?
This may seem like a glib question, but the truth is it’s the first question you really need to answer if you want to have a successful experience buying a house at the beach. Are you buying this house to rent it out as a means of generating revenue? Are you going to use your beach house as a vacation home? Do you actually want to relocate to the area and live in this house full-time? You need to make sure all parties involved in the home buying process are clear on how the house is going to be used, particularly if you are buying a property with a co-owner. Once you have a firm grasp on why you want a house at the beach it will be easier for you and your realtor moving forward to find a house that perfectly meets your needs and desires.
How close do you want to be to the water?
For many prospective buyers, proximity to the water is the single most important factor when buying their beach house. Before you buy, however, make sure you weigh the pros and cons of living near the water carefully. For example, living close to the water is convenient, great for resale value and will generate more income if you chose to rent the house out. However, living close to the water also increases your flood risks and your insurance rates. As you go through the home buying process be sure to check to see if the property you’re looking at falls within a flood zone.
How was the house built?
A house is only as good as the building materials and foundations. The potential for inclement weather in a beach town is a serious concern. Ensuring that your new beach house is as weather-proof as possible should be priority number one. According to FEMA, concrete and naturally durable wood are considered the best building materials for beach houses . Houses made with these materials can withstand strong winds and heavy rain better than most wood-framed houses. If the area you’re looking at also has a high flood risk or storm surge potential, consider purchasing a beach house built on stilts to minimize the risk for water damage. Be sure to also check on the roof of your prospective beach house before you buy. A beach house’s roof undergoes more damage than the average house. Buying a beach house with a relatively new roof made of durable, weather-proof materials will save you money in the long run. Try looking for a house with a metal roof as these roofs are not only durable but also highly wind resistant.
What kind of outdoor space do you want?
If you are looking at buying a house at the beach, then you probably want to be able to enjoy the area’s natural beauty. When shopping for a beach house be sure to check the outdoor space to determine if it meets all your wishes. Does the house have an outdoor pool or hot tub? Is there a patio or porch area? Is there a grilling area for family barbeques? How private is your outdoor space? Does your house have an ocean view? Whatever your outdoor wishes are, make sure your prospective house meets them so that you will be fully happy with your new home.
What’s the full cost?
When it comes to buying a beach house there’s more to consider than just the asking price. If you’re beach house isn’t going to be your primary residence or if it’s located in an HOA community, you may have to pay some sort of property management service fee. These fees can be expensive and should be considered when budgeting for your beach house. If you’re buying a house at the beach you need to also factor in higher homeowner’s insurance premiums as well as the cost of flood insurance. If you are going to be renting your property out, you need to also weigh your initial cost and maintenance fees against the revenue you make renting the house to ensure a good return on investment. Fortunately, the Myrtle Beach area consistently ranks as one of the most affordable metropolitan area’s in the country.
Where can you find a realtor you can trust?
For 60 years, Better Homes and Gardens Real Estate Elliott Coastal Living has been the name you can trust in the Grand Strand for all your real estate needs. BHGRE Elliott Coastal Living prides itself on its commitment to its core values of integrity, honesty, and diversity. Our friendly staff and real estate professionals are always ready and willing to help you with all your realty needs and questions.
If you’re ready to turn your dream of owning a beach house into a reality, give us a call or stop by our office today!
Kyle earned his Masters and Bachelors Degrees from the University of Alabama. A native of the Upstate, Kyle fell in love with the Grand Strand as a child during summer vacations with his family. A passionate writer, reader and world traveler, he can always be found on the beach with his head in the clouds and a book in his hands.