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Kelly Laird Smith Realtor in Rossmoor, Los Alamitos & Leisure World Seal Beach California

Found yourself California dreamin’ lately? If so, you’re not alone. Many people long for the freedom and adventure of purchasing their own beachfront house in the Golden State.

Buying a beach house comes with endless benefits, from life in paradise to a steady stream of reliable revenue from rentals. But you should carefully consider some of the costs associated with purchasing a second home, too.

Let’s dive into the process of purchasing a house on the beach in California.

Why California Beachfront Property Could be Your Golden Ticket

No doubt about it, owning beachfront property in California comes with many, many benefits. From an economic standpoint, it represents an excellent return on investment (ROI).

After all, not only do you get to enjoy the property anytime you or your family wants to take a vacation, but you can make additional money by renting it to other vacationers.

In essence, you acquire a steady stream of reliable income, especially if your vacation home is located in a popular tourist destination. For starters, a warm location helps.

Many vacationers look to escape the cold temperatures spanning from October through March by vacationing elsewhere. They represent a great market for a vacation homeowner looking to bring in money through rentals.

In fact, those who rent beach properties often report earning enough income to pay for the house for an entire year during these few months. Essentially, they live in the house cost-free during the non-peak season.

Paying the Price for a Vacation Home

Beachfront properties cost more than their inland counterparts. Why? Pricing differences go back to the old real estate adage: location, location, location.

Everybody and their dog wants to live at the beach. Properties are in demand, and this translates into higher listing prices.

Prepare to pay more when it comes to mortgage fees, too. The more the property costs, the more you’ll end up accruing in principal and interest. What’s more, mortgage interest rates for second homes tend to be higher.

You’ll also need a solid credit rating before taking out a mortgage on a second home. And you’ll need steady cash flow and extra cushion that makes paying for two mortgages comfortable.

That’s why it’s essential to work with a knowledgeable real estate agent who can guide you through the process of purchasing a vacation home. That way, you can guarantee you come out with the most value for your buck.

Additional Considerations Before You Purchase

Because of their locations, beachfront homes prove more vulnerable to natural disasters such as floods and hurricanes. So, get ready to pay more for insurance.

These rates include mandatory flood insurance costs that have skyrocketed in the past few years as a result of widespread hurricane damage along the East Coast.

Fortunately, insurance for a California beachfront home remains significantly lower than for a property along the Atlantic Coast or the Gulf of Mexico. This marks just one of many reasons to make California your beachfront property choice.

Weather-Related Factors to Keep in Mind

A coastal location comes with unique weather and climate considerations. The environment can prove more hostile and corrosive because of salt air, sand, and wind-driven water. The humidity can also lead to mold and water damage.

This shouldn’t deter you from a home purchase. But you’ll need to take some special precautions to find the perfect beachfront property. Where to start?

First, make sure you opt for a professional, trustworthy real estate agent who knows coastal areas inside and out. An experienced agent will know the history of an area and steer you clear of properties with underlying issues.

And once you’ve found a potential dream home and feel ready to sign? Find a home inspector who specializes in coastal environments. They’ll be able to spot red flags a mile away and help you purchase a home that’s in excellent condition.

Location-Related Factors to Consider

Life on the beach comes with so many perks. Feeling the sand between your toes, listening to the pulsing rhythms of the waves, enjoying a carefree, laid-back lifestyle.

But coastal locations also prove more vulnerable to beach-specific issues such as flooding and natural disasters. Homes located along the California coastline don’t fall prey to hurricanes like homes along the Gulf Coast or the Atlantic Ocean.

Nonetheless, you’ll want to consider potential issues such as flooding before making your purchase. Do some research to find out whether or not the home you’re considering is located in a flood plain.

If so, contact an insurance agent to find out about the ramifications of the location. Will you need to purchase additional insurance? What do coastal policies mandate about what you can rebuild following a natural disaster?

You want to ask these questions now in order to avoid unforeseen surprises in the future. An experienced real estate professional with a proven track record of working with coastal homes can help you address these location-related factors.

Buying a Beach House in California

California’s coastline is a magical place, renowned worldwide for its scenic beauty, temperate climate, and gorgeous Pacific Ocean views. There’s no better spot to invest in a second vacation home.

A prime location that sees millions of vacationers each year, a California beachfront home can provide you with a stable, reliable income stream. It also represents a paradisiacal retreat that you, your friends, and your family can visit at your leisure.

Although you’ll need to factor in added expenses based on mortgage fees for second homes, home insurance fees, and etc., buying a beach house still represents one of the smartest investments that you can make.

One your family will enjoy for years to come.

The Home of Your Dreams

Interested in finding out more about buying a beach house along California’s Pacific Coast? Or, maybe you have questions about the best locations and properties for your budget and unique needs? We’re here to help.

Contact us today to learn more about the ins and outs of purchasing a vacation home in the Golden State. We won’t rest until you find the coastal home of your dreams.


by Kelly Laird Smith, CA BRE #01359555
Pattie, Kelly, Wink & Associates
(562) 522-5173 (m) (e)