Beachfront Vacation Home: Questions to Ask Yourself Before Buying One

Entering the market for your second home can be an exciting experience. But, buying a beachfront vacation home is a big investment. Many homeowners just jump right in after a visit to what has become their favorite vacation spot without thinking about the long term costs or liability. You're buying your beachfront vacation home for relaxation, not stress. So, ask yourself these questions to be sure that you're ready.

1. Am I Ready?
Traditionally, people waited until they were near retirement age before buying a vacation home. But nowadays, there's no reason to put it off. Increasingly, home buyers understand that an additional home is not just a 'treat', but a sound financial investment (if you do your homework). Being ready has little to do with age. If there's a way to work it into the budget, then go for it.

2. Do I Want to Rent or Buy?
I have never been a big fan of renting property. When it comes to a long term investment, the money you spend on rent could easily go to mortgage payments that will get busy building equity. Even if you aren't sure that you'll be able to commit enough time to the property to warrant purchasing it, my advice is go ahead. Empty beachfront vacation homes can make great income generators.

3. Do I Have the Time to Commit to the Search?
Vacation rentals should never be an impulse buy. You should take the same care and consideration when buying your second home that you did when you purchased the first one. Be sure to visit, consult experts on and carefully inspect your future home. Don't let distance become an excuse for irresponsible investing.

4. Where Do I Want to Live?
When some people envision a beachfront home, they know exactly where they want it. However, more flexibility with your location means more flexibility with the price. Even if you already have your eye on a location, a little creative thinking can open you up to some new ideas or save you a lot of money. What about a lake or riverfront vacation home? Or, there are many out of the way or not-yet-popular locations that offer the opportunity to maximize return on your investment should you decide to sell or rent your property. Whatever your decision, consider insurance risks, temperature and lifestyle when making your choice.

5. What Do I Want Out of My Beachfront Vacation Home?
When considering properties and location, make sure that you take all family members into consideration. A quiet, out of the way beachfront vacation home might sound great to the grownups, but it will be a lot less serene if the kids are nagging you about being bored. Conversely, if you're looking for peace and quiet, make sure that the sleepy beach you visited in the fall doesn't turn into a spring or summer break bacchanal when the kids are out of school.

6. How Far Am I Willing to Go?
Consider the amount of time you will have to spend there. The longer you can get away, the farther your vacation home can be. No matter how much fun it is, the truth is that the farther away your vacation home is, the less likely you will be to go and visit it. If you plan to make your beachfront vacation home a weekend or short holiday getaway then don't look more than a few hours outside of town. It may take a little compromising, but you'll thank yourself as gas prices continue to climb.

7. Can I Afford it?
Before making any purchase, especially a major one like a beachfront vacation home, you should be well aware of all of the present and future costs that you may incur. Prospective buyers tend to focus on the immediate costs of the mortgage and down payment while forgetting hidden costs. Did you know that, depending on the area that you plan to move to, insurance can run you over a thousand dollars a month.

8. Should I Go With a Real Estate Agent, or Search Myself?
This question is really one of personal choice. I recommend saving the 10% fee and going it alone. There are a plethora of beachfront vacation homes listed on internet sites, magazines, and newspapers. In today's internet age, the average person has access to about as many listings as any real estate agent.

9. Will I rent it?
While you might not currently have any plans to rent out your beachfront vacation home, it is advisable to keep that option open. Even if you continue to do well financially, statistics show that after 2-5 years most home owners fall out of love with their beachfront vacation homes. When buying make sure you are not only in a place that makes a good long term investment, but one that will attract renters when everyone's sick of going there.

10. How Long Will I Own It?
If you are planning on eventually retiring in your beachfront vacation home, consider your needs down the line as well as now. If the vacation home will eventually become your permanent residence, consider the proximity of hospitals, restaurants, grocery stores and other necessaries. Homes with lots of stairs aren't going to be enjoyable in your golden years, and neither will heavy tourist areas.