Beach house – Have you been planning to buy your own house for a while or are you thinking about building a house? Do you prefer to spend time at the beach? Or you want to invest in a holiday home to rent it out or sell it after renovation with added value? Then it’s time for you to look into beach homes. The beach house, which inspires with a dreamlike beach location, can be used as a home or as a profit-promising capital investment. In the following article you will learn what a beach house is and what advantages and disadvantages it has. Furthermore, both the construction and the purchase of a house will be explained to you in more detail and it will be pointed out what needs to be considered for different needs! Here you can get back to the overview of the many possible house types.
A beach house can be used as a retreat as well as a modern home. A home that many dream of – do you? While the type of home can vary greatly, it remains true to its location – right on the beach. Whether it’s a luxury villa in the Hamptons, a modern bungalow in Calabria, or an aesthetically pleasing single-family home on the Baltic Sea, a direct oceanfront location makes the heart beat faster for many. The following is an overview of the most popular beach house types:
Luxury villa with beach view: Miami, Los Angeles & Co.
This type of property shines with its luxurious appearance, size and garden including pool. Characteristic of the villa on the beach is the mostly square floor plan and the construction in the height, with two to three floors. The style of construction of the villa enjoys a wide range. It can range from a modern flat-roof architecture to a rustic country house architecture to a Mediterranean architectural style (columns, oriels, etc.). Large window fronts, spacious terraces and beautifully landscaped gardens including pool make the view of the sea even more dreamlike!
Bungalow with terrace and garden: Holland or Austria?
The bungalow inspires with its detached architecture and the distribution of living spaces on one floor. Open living spaces, large doors and floor-to-ceiling window fronts are established as the main features of this popular house type. Direct access to the garden from every room is particularly popular. Especially families with children appreciate and love this advantage. This direct access to the garden and terrace can be combined fantastically with the direct location on the beach. So you can not only enter the garden from every room, but also walk directly towards the sea horizon.
Penthouse with panoramic view: New York, London & Co.
The word penthouse is mostly associated with luxury and exclusivity. If this penthouse also has a panoramic view of the sea to offer, you are in the upper segment of luxury. Space, living comfort and luxury have established themselves as the main characteristics of the penthouse. If one follows the official definition of the penthouse, it is an exclusive apartment on the flat roof of a storey or high-rise building. We are not talking about a classic form of beach house, but about an apartment which knows how to inspire with a spectacular beach view!
You have been playing with the idea of investing in a property with a fantastic location directly on the beach for a while? Divided opinions in your circle of friends and within your family, however, unsettle again and again? One thing is certain – every property comes with both advantages and disadvantages. You have to decide for yourself which criteria are the most important and have the highest priority. To help you with your decision, the most important advantages and disadvantages of a beach house are listed below:
Advantages: perfect beach location and holiday feeling as capital investment
As different as the construction type of a beach house can be, each one is the same in its location – the dream location on the beach. The highlight of every beach house is the direct view and access to the beach. Whether it’s a Mediterranean climate on the Italian coast, a cool sea breeze on the Baltic Sea, or a subtropical climate in Santa Monica, California, a beachfront property improves the quality of life by allowing more time to be spent outdoors and in nature. Sports activities such as surfing, hiking, or swimming often become a regular part of your daily routine. Furthermore, beachfront property can be traded as a safe investment. You can use the beach house as your own home as well as rent it out. This flexibility makes owning a property with an ocean view even more enjoyable.
Nature on the doorstep
Wide range of sports activities
Rising market value with good location
Flexibility (own home or rent out)
Promising investment (rental income, high demand)
Long-term profits
Improved quality of life
Disadvantages for own use: poor infrastructure and isolation
There are different aspects to consider when looking at the disadvantages of a beach house. Depending on the use, location and interest, there are various things to consider. If you want to use the purchased property as your own home, you should not be blinded only by the beach at your doorstep. The mostly isolated location on the beach and the accompanying poor infrastructure, can make everyday life difficult. No public transportation, supermarket or retail in close proximity can become a major problem. The decelerated daily routine first celebrated can become established as a time-consuming endeavor. Furthermore, depending on the location, social life can differ significantly from that in big cities – feelings of loneliness and isolation, especially in the winter months, are not uncommon.
Disadvantages when renting: hidden costs at the beach house
You have to look at the project “beach house” with different eyes if you consider to use it as an investment and to rent it out. Here, despite the advantageous location, there may be gaps in bookings and a corresponding loss of rental income. Hidden costs in the registration of various rental platforms such as AirBnB, etc. should not be forgotten. Furthermore, a beach house often requires renovation work – wood paneling, verandas, etc. must be kept in shape, which is associated with work that should not be underestimated!
Poor infrastructure with isolated location
Insulation in winter months
Accounting gaps and loss of rental income
Hidden costs for registrations (AirBnB etc.)
Leases, bureaucratic chaos
Time-consuming renovation work
Tip. If you’re looking to remodel a home and increase the value, read even more about renovations & utility costs here!
Things to know about the beach house: room layout, capital investment and more
You associate a beach house with holiday feelings and relaxed everyday life? All true, but a beach house can do much more. The following explains which design features you can count on and which advantages they bring with them. Relaxed holiday feeling is not enough for you? Then there is the possibility of reading more closely into the world of capital investments. The beach house is often celebrated as the perfect investment for a reason.
Potential room layout: beach house with window front, open room layout and terrace
A beach house is defined neither by a characteristic room layout nor by a certain architectural style – the main feature is the dreamlike location on the beach. Depending on this aspect, a terrace with a beautiful garden where you can enjoy the view of the beach is not uncommon. Furthermore, beach houses are often built with an open room design and large window fronts. All these measures are taken to get the maximum beach feeling also in the house. Whether conservatory, terrace or balcony – you will find a beach house that offers you the ultimate sea feeling and a fantastic beach view.
Beach house as an investment: Rent out a house on the beach
You have convinced the many advantages of a beach house and you have found in this property, the perfect investment for you? Then the following should be considered: Basic knowledge is the A&O. So that you can successfully generate a profit, you must be aware of the value of your property. The value of the property (usually in € per square metre) plays an important role here. The size, the condition of the house and the age of the technical equipment also affect the value of the property. In the case of the beach house, the location can be considered a bonus, since the direct location by the sea is very popular both as a holiday residence and for longer rentals. The following is a summary of the most important points to consider:
Analyze situation
Evaluate infrastructure
Purchase price and condition of the property must be in a good ratio
Buying a beach house: Arguments, advantages & disadvantages of buying a house
Requirements: Step by step to the dream property on the beach
As the first step on the road to buying your beach house, you need to come up with a strategy and plan, and answer some basic questions. What kind of budget do I have? What style of construction do I prefer? Do I want a beach house or a bungalow? How many rooms do I need? How many square meters should my house and plot have? Do I need to be close to a school or supermarket? After you have found answers to all these basic questions, you can venture to the second point – financing!
Financing a beach house: Financing Tips & Options
Now you know what you want, now it’s time to be able to implement this plan financially. It is important that you are aware of the big commitment when taking out a construction financing and a loan. Before you take out a building loan, you must check your own financial resources. Do I already own a home? Do I have a building savings contract? What does my monthly income look like? What fixed costs, such as insurance or ancillary costs, such as holidays, car purchase, etc. must be taken into account?
If a bank grants you a building loan, it is recommended to provide at least 10-20% of the purchase sum and ancillary purchase costs as equity capital. Another important point is the repayment period. According to recommendations, it is advisable that you plan your financing so that you have paid off your debts by the age of 60. All this depends, among other things, on the repayment rate. You can find more detailed information on financing here! The following is a summary of the most important points for you:
Determine the initial situation (budget, what do I want, etc.)
Don’t forget incidental costs (hidden costs when buying real estate (agent’s commission, notarisation of the purchase contract, etc.).
Long-term planning and debt restructuring in the form of a follow-up loan
Obtain several financing offers
Choice of long-term financing
Examine a wide range of offers (allow time)
Include repayment
Search for the beach house: ads, realtors and a lot of patience
If you have followed the first steps, you now have a precise idea of your dream house on the beach and have a financing plan. In order to realize your dream as realistically as possible, it is advisable to hire a real estate agent. He will accompany you throughout the entire real estate journey, support you with insider tips and advise you on the final decision. The wide range of exposés can often seem overwhelming and bring chaos.
Important tip: Don’t lose sight of your ideas and requirements and keep an overview. Checklists are the key!
Viewing appointment: daylight, location, checklist and co.
After you’ve successfully navigated your way through a large amount of listings with the help of your agent, the next step is the viewing appointment and everything that needs to be considered around it. Before you visit the property, it is recommended that you create a checklist to cover all the important aspects and to have questions answered at the end of the visit. The following is an overview of the most important points to consider during a viewing, so that a decision can be made at the end:
Draw up a list of questions before the viewing (type of heating, operating costs, renovations etc.)
Daylight (defects and faults can be better detected)
Take a close look at the surroundings / location (noise, smells, parking situation, etc.)
Analyse infrastructure (local transport connections, supermarkets, etc.)
Conducting conversations with neighbours (insider knowledge)
Examine the condition of the facade, roof, attic, cellars and windows.
Note water stains, outdated windows, poor insulation, etc.
Take pictures during the tour
Legal aspects of buying a beach house: purchase contract, land register entry and co.
You have already successfully completed several steps on the way to buying a house, now you need to be legally secured. First and foremost, your purchase contract must be notarized. At a notarisation meeting, the contract is read out again by the notary to both parties and final questions can be answered. The property is only recognised as your property when you have paid the purchase price in full. This will be accompanied by the transfer of ownership in the land register by the notary. The official “economic transfer” will also be recorded in the notary contract. From that moment on, when your name is entered in the land register, you as the buyer are the final owner of your beach house. The following is a summary of the most important points:
Notarization of a sales contract
Transfer of ownership (lecture by notary)
Land register entry (notary, only after transfer of the complete purchase price)
Certificate of no objection from the tax office (payment of the real estate transfer tax by the buyer)
Building a beach house: Arguments, advantages & disadvantages of building a house
The decision is made – nothing stands in the way of your dream of a beach house. Now you have to decide whether you want to build, buy or rent. Especially house building is becoming more and more popular – according to a survey in Germany alone, about 1.17 million people are planning to build a house within the next one or two years. If you’re going to build a house, why not do it right on the beach? You can realize your individual ideas, give free rein to your creative streak and call a dreamlike setting your home. The following is an overview of important aspects that need to be considered when building a house.
Important aspects when building a beach house – financing options and co.
Similar to buying a house, you need to consider many different aspects when building a beach house. An exact idea of size, style, room layout etc. is strongly recommended. Once you have structured your personal wishes, it is a good idea to have them checked by an expert and get several offers. A fixed budget, financing options and a fixed time frame will also make building a house easier. The following is an overview of the most important points that you need to consider when building a house:
Stay informed and critical
Weigh up financing options
Obtain different offers
Find a plot of land (infrastructure, soil conditions, etc.)
Observe building regulations
Set up strategy and plan (What do I want?)
Include additional costs (notary fees, surveying fees, etc.)
Draft detailed building specifications (participate in the construction of the house)
Good research (building materials, wall construction, heating, etc.). (do not save at the wrong ends)
Control is better than trust
Beach house: possibilities & house forms – prefabricated house or classic solid house?
The prefabricated house is characterized by its unusual method of construction. This type of house construction does not take place on site. The individual house elements are previously created in production halls and then assembled like building blocks on the property. As large advantages the fast building time and the more favorable costs are acted here in comparison to the massif house. However, the lack of individual components proves to be a disadvantage. There is little room for your personal design taste and your creative design vein in a prefabricated house. Furthermore, the quality is lower than in a solid construction, which is also accompanied by poor sound insulation. If you take this thought further, you can see that the resale value also decreases over time. Have you decided to fulfill your dream of your own four walls in beach location, you can implement this in the form of a solid house more individual.
/wp-content/uploads/2024/04/lukinski-logo-real-estate-investment-germany-house-villa-off-market-clean.svg00Laura/wp-content/uploads/2024/04/lukinski-logo-real-estate-investment-germany-house-villa-off-market-clean.svgLaura2021-02-04 10:15:482022-03-01 10:31:15Beach house: Advantages & disadvantages of real estate investment, capital investment at the beach
