Vacation rentals and beach houses have grown in popularity over the recent past- and for a good reason. If you are looking to invest in the real estate industry, a property on the beach would be a good option to consider because of the high demand for beach accommodation during the months of summer. You can also use the house for your personal use, probably for weekend getaways with family or friends.
You’ve to make sure to choose the hottest places to buy a beach house before investing in one. The adventures in London, Ontario are endless for your family if you choose to use the beach house for your personal needs. Beach volleyball, skiing, snowboarding, tubing, and mountain biking are among the many outdoor fun options for you when visiting Ontario.
10 Places To Buy A Beach House
But all beach houses are not the same. Depending on the location, some places to buy a beach house will give you a better return on investment; others will be slow in picking up good business. Here’s a list of 10 places to buy a beach house in the world that will ensure you get the maximum perks:
1. Florida
The American sunshine city is home to some of the coolest coastal towns and beaches, including but not limited to Panama City Beach, Santa Rosa, Ocean City, Long Key, and Cocoa Beach. The cap rate here ranges from 4.5 to 6.2 percent while the initial house cost is between $300K and $800K.
According to statistics, the state of Florida welcomed over 120 million visitors in 2018, meaning that this number can go higher. On the other hand, the estimated rental income in most coastal towns in Florida is in excess of $35K. The demand for vacation rentals, therefore, must impressively high.
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2. Ontario
Ontario has been receiving at least 20 million visitors every year since 2013, so the need for rental cottages is definitely high. You will get a nice cottage for anything between $100K and $700K in London and its neighborhood. And because the property interest rates in Canada continue to remain lower than in most US states, the average Canadian commercial real estate cap rates also remain to be lower than in the US. And the estimated rental income here is impressive too as it never goes below $20K a year.
What’s more, the adventures in London, Ontario are endless for your family if you choose to use the beach house for your personal needs. Beach volleyball, Skiing, Snowboarding, Tubing, and Mountain Biking are among the many outdoor fun options for you when visiting Ontario.
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3. Atlantic Coast
Myrtle Beach, in particular, is a cool neighborhood for a vacation home in the West Coast. This region has a cap rate of 6.9%, a median home price of $250K, and median annual rental revenue of $27K. With an investment of $500K or more, you could make up to $80K per year from this investment. Approximately 14 million tourists visit Myrtle Beach each year, making it one of the prime investment hubs in the US today.
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4. Ocean Shores
Ocean Shores is one of the most amazing places to buy a beach house. It is located near the cost with fabulous waterfront property which provides ocean and coastal views. No matter in which neighborhood you are located, you will be within steps away from the beautiful water scenery and activities. For people wanting to buy a house in this area, the cap rate is approximately 7.6%, where the median come cost is $239,460. If you think of giving it for rent, you could be making and median annual gross rental revenue of $32,383.
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5. Panama City Beach And Santa Rosa
For decades Panama City has been one of the top picks for home buyers. Apart from providing world-class and luxury resorts, either for families or friends, Panama City is also known for its awesome sandy beaches and warm hospitality. This region, for future investors, boasts a cap rate of 6.1 %, with a median home cost of $419,900 whereas its median annual gross rental revenue is around $44,555.
6. Gulf Shores
Gulf Shores is another destination for buying a house on our list. The Gulf Shores lie across southern Alabama near the Florida state line. The access to white sandy beaches and its gentle ocean waves are what make it a perfect destination for buying a house there. With an average cap rate of 5.8%, a median home cost of $409,900 and a median annual gross rental revenue of $39,045, is what makes the Gulf Shores a worth buying destination.
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7. Kauai
Kauai has been ranked as one of the most attractive destinations for investors over the last couple of years. Kauai is located in the Central Pacific and named as the “Garden Isle; due to the continuous tropical rainforest that encompasses most of the surface. The region has a cap rate of 5.4%, a median home cost of $696,028 and a median annual gross rental revenue of $61,117.
8. Ocean City
Ocean City has been, for several years, on America’s top list for best beaches. Besides the sandy beaches, every visitor can enjoy the boardwalk which is populated with local restaurants and shops and amusement parks. Furthermore, the regions provide also extreme activities for adventure lovers such as surfing, kayaking, canoeing, etc. Ocean City offers a variety of homes for those wishing to buy. The cap rate in the region is 5.4%, the median home price is $285,900 and the median annual gross rental income $30,769.
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9. Bolivar
The cap rate here is estimated at 5.6% while the median home cost is $329,900. With a $100K worth of investment, you stand to earn not less than $26K a year. And because the region’s real estate industry is on an upward trajectory, these figures can only tilt in your favor.
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10. California
Palm Springs, Westlake, Laguna Beach, and Valencia, among several others, are great locations for a beach rental home. The median cap rates in most of these regions range from 5.55% and 6.56%. Although the median price of beach homes currently listed in most coastal towns in California is $400K, the ROI is impressive as the median rental income can hit $100K in a good year. Plus the state hosts more than 250K tourists every year since 2014.
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All the 10 places to buy a beach house in this list have a clear investment advantage over other towns and cities in America. Whether you are planning to use your beach house on your world trip for personal adventures or as an investment venture, you need to ensure that it is as close to the oceanfront as possible and that the real estate market in its location is looking up. That guarantees you a favorable resale value in case you choose to sell it in the future.
Lilly Herbert is a devoted career specialist. When she’s not helping students make the right career choice, she’s either writing travel stories or exploring the realms of nature.
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