There are pros and cons to oceanfront condos. This article will highlight those points and help you make an informed decision.
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Many people have a dream of owning a home near the ocean. This is possible only if they purchase an oceanfront condo or house. Oceanfront condos offer many benefits. These condos can be used as a vacation home or additional source of income.
Is it a good idea to buy an oceanfront condo because you like the idea? While you should consider the potential benefits of investing in an oceanfront condo, you also need to consider the drawbacks. There are pros and cons as well as the cost. The condo will cost you a lot of money, plus some extra fees.
Let’s dive in and see if an oceanfront condo is worth the investment.
Benefits of Investing In An Oceanfront Condo
1. Condos Have a High Market Value
Condos with oceanfront views are in high demand. If you purchase them at one price, they can be sold later for a reasonable price if there are any renovations or upgrades to the property.
A condo on the oceanfront is worth more than it’s worth unless it’s damaged or needs to be repaired.
The price of condos is rising even in Myrtle Beach, where they are often cheap. You can either sell your condo at the same price or at a higher value if you have invested in it.
2. Can be used as a rental
People who visit the beach will prefer to stay in private condos, as they will be more comfortable than hotels. Some people will even pay more for a hotel than they would in a private condo. If you are thinking of renting your property, this is a good idea. Rent is expensive for most condos on the oceanfront. This can be a great way to make a side income if you don’t use it.
You might be able even to return the initial investment cost if you rent it out long enough. Your condo can be rented out for a year or just during vacation season. This will allow you to enjoy the condo during off-season.
3. Over time, the value of a property increases
Your condo’s value will rise over time. Edge prop conducted research and found that condos have seen a dramatic increase in value over the past 10 years.
An oceanfront condo in 2018 would average cost $1.26million. Ten years ago, in 2008, the average price of an oceanfront condo was $660,000. This means that the average price for oceanfront condos has nearly doubled in ten years.
You can expect your condo’s value to rise in the next five to ten years. However, it is important to maintain your condo and upgrade its features.
4. You will have your vacation house
It can be very relaxing to have your own property on vacation. You don’t need to worry about booking hotels. To enjoy a relaxing vacation, you can go to the property even if it isn’t being rented.
5. Oceanfront Condos Have Offer Health Benefits
You will not only reap the financial benefits of your oceanfront condo but also enjoy some health benefits. Oceanfront condos, particularly beaches, offer fresher air and more sunlight than urban areas.
Even breathing in these condos can feel different. You will feel more relaxed and happy if you have access to fresh air and a calm environment.
6. It can improve mental health
A study by Dr. Jo Garrett published in Health and Place journal showed that people who live near beaches are more likely to have better mental health than those who don’t.
Because of the lower levels of pollution, living near the beach is a better place for mental growth. People who live in such areas are less likely to experience anxiety or depression.
There are downsides to investing in an Oceanfront Condo
1. The down payment can sometimes be very high
Sometimes, the down payment for an oceanfront condo may be higher than usual condos. When a property is purchased with credit, down payments are the initial payment. If your condo is $800,000., you don’t need to immediately pay $800,000.
To close the deal, you will need to pay a down payment and then make the remaining payments within the time frame that the agent provided. The down payment for an average condo in most cities is between 5-10% of its original cost.
For oceanfront condos it can go up to 20-30%. Consider whether you are able to pay this large upfront.
2. Natural Calamities Could Be Common Occurrences
You will be exposed to natural hazards because you live near the ocean. Oceans can be the source of many natural disasters. There are many natural disasters that could occur, including cyclones and tornadoes, heavy rains, and tidal waves.
If your condo’s foundation is weak, all of these disasters can be deadly. You will also be facing large repair costs.
3. The Property May be Damaged by Renters
The property may be damaged by renters. It is their property and they may cause damage to your condo’s interior or break some of the objects.
Before and after your rental period, be sure to inspect the house for any damage. If you find damage to your property, you can request a penalty from those who rented it for the repair costs.
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4. Mold can grow inside your condo
Warm and humid conditions are favorable for mildew and mold growth. It should be obvious that the environment near the ocean is always humid all year. This is why mold can often be found in your home.
You must clean them thoroughly so they don’t spread to other areas of your house or cause damage to the structure.
5. Oceanfront Properties are prone to metal corrosion
Humidity can also be a problem for metals. The high concentration of water particles in the atmosphere can cause metal objects to rust. Metal cutlery, furniture, and all other metallic objects can corrode quickly.
You have two options: either maintain them regularly or change to something that is more resistant to the humidity, such as plastic. You might need to spend money every year to fix your metal furniture.
The HOA Fees for Oceanfront Condos
HOA fees, or Homeowner Association fees, are a yearly fee you must pay to your homeowner’s association. The association takes care of your property and does any repairs or improvements.
The HOA fees for oceanfront condos can vary depending on where you live, but they typically range between $700 and $900. The HOA fees in Myrtle Beach range from $600 to $1200. In Murrells Inlet it can range from $400 to $700. Before you buy an Oceanfront condo, think about the HOA fees.
Popular Places to Buy Oceanfront Condos
Myrtle Beach is the most popular place to buy an oceanfront condo. This area has the highest number of condos and is also the most affordable. Prices range from $600,000.00 to $1,750,000. You will still get a lot of amenities even though the condos are less expensive.
Pawleys Island is the next most visited place. You can find some incredible condos, however they are all slightly more expensive than Myrtle Beach and have a higher HOA.
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All things being equal, your decision to invest in an oceanfront condo is up to you. Both have their advantages and disadvantages. Also, you need to take into account the cost of condos, taxes, HOA and maintenance fees. If you feel that purchasing a condo is a better investment, you should do all of these things.