An oceanfront condo has pros and cons that you need to consider and in this article, we will be highlighting those specific points to help make a better decision.
Many people dream of having a house near the ocean, and this is only possible if they buy an oceanfront house or condo. Oceanfront condos have many benefits. Owning them will not only give you an extra source of income, but you can use it as your vacation house as well.
But should you buy an oceanfront condo just because you want one? You need to consider all the benefits you will gain if you invest in one while also thinking about the downsides of owning one. Apart from the pros and cons, there is also the budget. You need to pay a good amount of money for the condo itself, and some additional fees too.
Let us dive into these topics and find out if it is worthy to invest in an oceanfront condo.
Benefits of Investing in an Oceanfront Condo
1. Condos Have a High Market Value
Oceanfront condos are on-demand these days. So if you buy them at one price, you can even sell them later at a reasonably higher price if some upgrades or renovations are done to the property.
The value of an oceanfront condo rarely drops unless it is somehow damaged and needs repair.
Even in Myrtle Beach where you can buy condos at cheap prices, the price is steadily increasing. If you invest in a condo and keep it in good condition you can sell it at the same or at a higher price. And if you are interested to purchase condos in Myrtle Beach then visit homeguidemyrtlebeach.com.
2. Can be Used as a Rental
Many people visiting the beach will want to stay in fancy private condos because it will feel better than hotels. They might even be willing to pay more money than a hotel as well. This is good if you consider putting your place up as a rental. For most oceanfront condos the rent is high, and it should be a good side income when you are not using it.
If you put it for rent long enough, you might even be able to get back the initial investment cost. You can either rent out your condo for an entire year or only during the vacation season so that you can enjoy staying there during the off-season.
3. The Value Rises over Time
Over time, the value of your condo will increase by a significant amount. In a research done by Edge prop, it was shown that just within 10 years, there was a huge rise in value for condos.
In 2018, an oceanfront condo would cost you around $1.26 million on average. But ten years ago in 2008, the price was only $660,000 on average. Meaning, just within ten years, the price of oceanfront condos has almost doubled.
So, you can expect the value of your currently owned condo to increase within the next 5 to 10 years, but you have to take good care of your property and even upgrade its features.
4. You Will Have Your Vacation House
Having your personal property in a vacation spot can be a stress reliever since you do not have to worry about booking hotels. You can visit when it is not put on rental to enjoy some leisurely vacation while watching the ocean sunset.
5. Oceanfront Condos Have Offer Health Benefits
Apart from all the financial benefits, you are getting from your oceanfront condo, you will also get some health benefits as well. Because oceanfront areas, especially beaches, have much cleaner air and fresh sunlight, which is very hard to come by in busy urban areas.
So even breathing in these condos will feel different. Fresh air and a calming environment can reduce your stress level and release serotonin in your body, which will keep you in a good mood.
6. Can Help Improve Mental Health
In a research published in the Health and Place journal, conducted by researcher Dr. Jo Garrett, among 26,000 respondents, it was shown that those who live near beaches have better mental health conditions than those who do not.
Living beside the beach provides a better environment for mental growth because of less pollution. So people who live in these areas rarely show signs of depression or anxiety.
Downsides of Investing in an Oceanfront Condo
1. The Down Payment Can Sometimes Be high
The down payment of your oceanfront condo could sometimes be higher than normal condos. Down payments are the initial payment made when something is bought through credit. For example, if your condo costs $800,000, you do not need to pay $800,000 immediately.
You need to pay a certain amount to finalize the deal and make payment of the rest within the timeframe the real estate agent gave you. Normally, for an average condo in most urban cities, the down payment is about 5-10% of the original condo cost.
But for oceanfront condos, it can get much higher, about 20-30%. So consider if you can pay this huge amount right at the beginning.
2. Natural Calamities Might be Common Occurrences
Since you are living near the ocean, you are going to witness a lot of natural hazards. Because most of the time, oceans are the source of different kinds of natural calamities. You could witness tidal surges, cyclones, tornadoes, heavy rainfall, and much more.
All of these catastrophes could be dangerous if the foundation of your condo is not sturdy. And, you will be looking at some big repair bills.
3. Renters May Damage the Property
Renters may also damage the property. Since it is not their property, a lot of them may act carelessly and break a few objects, or cause damage to the interior of your condo.
So, make sure to properly check the condition of your house before and after the rental period. And if you find any signs of damage, you can ask for a penalty from the people who were renting the place for the repairing costs.
4. Mold Can Grow inside Your condo
Hot and humid weather is favorable for mold and mildew to grow. And it should be obvious to you that the atmosphere beside the ocean will always be humid year-round. That is why you may often find mold infestation in your house.
Make sure to clean them properly just so that they do not spread throughout your entire house and damage the infrastructure of the house.
5. Metal Corrosion is Common in Oceanfront Properties
Humidity is also a nightmare for metals. Because there is a high quantity of water particles in the air, they cause the metal objects in your house to rust. Your metal cutlery items, metal furniture, and any other metallic objects will start to corrode often.
So you need to either regularly maintain them, or switch to something that resists the humid weather such as plastic. If you wish to keep your metallic furniture, then you might have to spend some money each year to repair them.
The HOA Fees Regarding Oceanfront Condos
HOA fees or Homeowner Association fees is a yearly fee that you need to pay to the homeowner’s association. This association maintains your property, doing any repair, or improvement works.
Normally, for oceanfront condos, it can vary from place to place, but on average, the HOA fees can range from $700-$900. For example, the HOA fee is a little high in Myrtle Beach, ranging from $600 to $1,200. But in other areas like Murrells Inlet, it can be around $400 to $700. So think about the HOA fees before buying an Oceanfront condo.
Popular Locations to Buy Oceanfront Condos
The popular area where most people buy their oceanfront condo is Myrtle Beach. It has the most condos out of all the other areas and the condos are fairly cheap too, ranging from $600,000 to $1,750,000. But do not let the price fool you because you will be getting a good amount of amenities from the cheaper condos as well.
The next most popular place would be Pawleys Island. There are some amazing condos as well, but they all are slightly more expensive than Myrtle Beach, and they all have higher HOA as well.
With all things considered, whether you should invest in an oceanfront condo depends solely on you. There are both some very significant benefits and some disadvantages. You also need to consider the price of the condos, tax, HOA, and maintenance fees. After going through these, if you think that buying a condo will favor you more, then definitely purchase one because it will be a profitable investment.