San Diego is quite possibly the best place to live. You can’t beat the sound of the ocean, the coastal breeze, or the scenic views. With perfect weather year-round, residing in a beach house simply takes the cake when it comes to coastal living! After waking up to the sound of the waves and the view over the Pacific Ocean, it’s hard to go back to living any other way. Before taking the plunge into beachfront living, make sure to do your homework! Chunyk Group can help you find that perfect beach house, without the hassle.
Here are the 5 most common mistakes to avoid when buying a beachfront property in San Diego:
Not Sticking to Your Home Budget
One of the major mistakes buyers encounter is not sticking to their budget. When in the market for any property, one of your first priorities will be to settle on a budget. Having an unlimited budget for a beach house would be a dream come true, however, it’s not always a possibility for everyone. It’s easy to get caught up in the romanticism of buying a beach house, but neglect reality!
Beach homes in the San Diego area can range anywhere from $500,000 to over $10 million. Going into your search with a figure you’re comfortable with will help both you and your realtor. Knowing your budget in advance can prevent heartbreak when you find out your dream beach house is $200,000 more than you can afford. Specifying a budget helps your realtor know which homes are realistic possibilities for you.
Don’t forget to factor in maintenance, upkeep, insurance, and repairs. Many beachfront home buyers forget that although their new beach house may be a vacation home, it is still a house and requires the same amount of care as a traditional home. In some cases, it may require more upkeep! Coastal homes are exposed to harsh elements like salty sea air and strong winds. Also keep in mind that your beachfront property may have HOA fees that need to be included into your budget as well.
Skipping Proper Home Insurance
If your new beach house is not your primary residence, many homeowners elect to rent the house a portion of the year. What many don’t realize is that standard insurance generally does not cover rental damages.
Even if you decide not to rent out your beachfront property, there are other types of insurance to consider. You may want flood coverage if there has been a history of flooding near your new home or if it is directly on the beach.
Don’t know where to look for insurance? Your realtor at Chunyk Group can recommend an insurance broker.
Relying on Rental Income
Many buyers plan on supplementing their main income with what they make from renting their beach house. However, this may not always be practical! With extra insurance and potential damages, rental income from your beach house might not be enough to cover what you anticipate making. Understand that a rental house may not be a steady source of income, especially in the initial years as you work out kinks in your rental policies.
Not Investigating the Neighborhood
It can be easy to fall in love with a beach house and jump to make an offer. Don’t forget to check out the neighborhood first!
Are most properties in the area fulltime rentals? Will you be the only year-round resident? If you’re interested in a quiet spot year-round, research the area. Some beach homes are positioned in the middle of prime spring break territory! Make sure you know if there will be flocks of spring breakers. As a rental property owner, this can be a plus– you will have sure-fire renters during March and April annually. If you don’t want college-aged renters, consider an area that is quieter and less known to be a spring break hot-spot. Look into the school district and what businesses are nearby, like restaurants, gas stations, and grocery stores. Determine which resources are most important to you as you begin your neighborhood search. Make sure you do your homework before signing your name on the line.
Not Using a Coastal Home Inspector
Before you close on your new beach house, you will want to have licensed home inspector come through. You may want to call the inspector you used on your first home, but resist the desire to use someone just for the sake of familiarity! A conventional home inspector may not be fully trained in a beach house inspection. Make sure to use an inspector that specializes in beach homes and beachfront properties. Beach houses encounter their own set of unique liabilities due to the ocean spray, salty air, and high winds. Some things can be hidden by a coat of paint. A coastal home inspector will be able to spot those hidden liabilities.
Have more beachfront property questions? Chunyk Group is here to help you avoid any major mistakes when purchasing a San Diego beach property.