Your Domain: Five things to consider before buying a beach house

As we fly through the tail-end of summer, those with their hearts set on a beach house are filling out auctions, hoping to hold onto the warmer weather a bit longer.

But buying a beach house is a large commitment. Here are five things to consider before taking the plunge.

Reign in the emotions

Investing in a beach house can often be a battle between heart and head. Fall in love with a home in the perfect location, and a budget can fly straight out the window.

“We always buy with our hearts instead of our heads when it comes to property,” says financial advisor Ben Kingsley. He says having a goal you’re trying to achieve with the purchase of a holiday home in mind will help avoid any regrets.

“If we’re trying to achieve a lifestyle choice, maybe consider it. But if we’re trying to achieve a return on investment, let’s hold back.”

It runs its own race

Holiday towns often run their own market and don’t always reflect what is happening in capital cities.

Summer is usually a popular time for beach towns after holiday goers fall in love with the area.

“It’s a busy time down here,” Ray White Rosebud agent Michelle Bennie says. “Everyone comes down for the summer and we had quite a lot of auctions last weekend and the majority of them sold, so its booming as such.”

The holiday honeymoon period might have you rushing to get amongst the summer auction action, but experts highly recommend taking the time to carefully consider your finances first.

Don’t forget about maintenance

Land tax, council rates and maintenance on a property that isn’t your primary home can quickly stack up, and should be factored into your budget before you buy.

If you can foresee the home being left unattended for large periods of time, you run the risk of vandalism and theft. Garden and security maintenance can become costly over time, so selecting a home with minimal upkeep can cut costs.

If you’re planning on marketing the home as a holiday rental, you’ll need to maintain the home more regularly and be prepared to furnish the home to a competitive standard.

Consider its investment potential

If your main aim is to buy a beach house with great investment potential, Kingsley recommends looking at larger towns or cities. If you’re buying a home by the beach as a personal retreat, you have more options available to pick from.

Buying into a smaller, less-known beach area could impact your investment opportunities. However, if the holiday home is a long-term commitment, there’s the potential for the area to see more visitors in the future.

Look to the next beach over

Popular holiday destinations will be more expensive to buy into. While holiday homes in Sorrento or Portsea on the Victoria’s Mornington Peninsula might be ideal, looking a few beaches away, like in Rosebud, and you may be able to afford an extra bedroom.

The concept of bridesmaid suburbs can also be applied to bridesmaid beaches. Even if your heart is set on a particular area, ask agents if they have homes for sale in neighbouring towns.