Real estate is my favorite asset class to build wealth because you can also enjoy it. Can you imagine making millions of dollars on your beachfront property while also living your dream life? I don't care how much stocks go up if you're never going to use the proceeds.
However, unless you are able to get a steal, beachfront property may have a more difficult time appreciating in the future.
The Aspiration To Own A Beachfront Property
Flying To Hawaii To Understand Beachfront Homes
The Biggest Problem With Beachfront Property
Protecting Your Beachfront Property With A Seawall
Below is an image of a seawall and the strength of the ocean in Lanikai. There used to be a beach a couple decades ago, but no more.
Hardship Exemptions Are Being Made
More Problems With Owning Beachfront Property
- You must purchase more expensive materials to protect your home from wind and saltwater. We're talking about the highest quality doors, windows, fixtures, and paint.
- In addition, you must replace your doors and windows more frequently. Poor quality windows will fail more easily due to the constant pounding of wind, rain, and saltwater. Moisture will likely seep into windows easier and fog them up. Doors will rot and decompose easier.
- It also takes more frequent paint jobs if you want to keep your beachfront home looking fresh. Paint cracks and chips more easily on beachfront homes. Thus, instead of repainting your home every 10-15 years, you may have to repaint your home every 5-8 years. Consider elastomeric paint for waterproofing.
- Beachfront homes are also more susceptible to flooding. As a result, you should buy flood insurance. If there's ever a tsunami, god forbid, then your beachfront home will either be destroyed or need tremendous rehabilitation.
- There will always be sand everywhere in your home. Hence, the importance of having a good outside shower or hose to wash off beforehand.
Buy A Beachfront Home For Lifestyle First
Notice in the picture below how the beaches are all gone. Maybe during morning low tide, homeowners can find a sandy spot to lay on. At least hoping into a canoe from your backyard looks really fun.
Oceanview Home Over Beachfront Home
Update Your Homeowner's Insurance Policy
Whether you have a beachfront, oceanview, or no-view home, you should update your homeowner's insurance policy. Building costs have risen and so have most property prices over just one year. As a result, your home may be underinsured.
Check out Policygenius for competitive homeowner's insurance policy quotes for free. To get the best homeowner's insurance rate, it is advised to shop around at least every two years as well.
If you want to practice my BURL real estate investing strategy, you can invest passively in single-family rental properties through a Fundrise fund. Fundrise is my favorite way to earn passive income in real estate. The funds invest in single-family and multi-family homes in the Sunbelt, where valuations are lower and rents are stronger.