We all seem to get the itch at one point in our life or another. It often starts after a memorable and fun vacation. Thoughts of purchasing a beach house or vacation home start to creep in, especially given the popularity of vacation rentals in Florida.
While beach house rentals are lucrative, owning a beach house in Florida can be more complex than owning an inland home. This is because financing is usually more expensive, and the tax burden can be higher.
If you are planning to buy a beach home in Sarasota, FL, you will be spoilt for choice. However, if you are looking to invest in a Sarasota beach house, you should focus on Siesta Key, Lido Key, Casey Key, and Longboat Key. Did you know that the Siesta Key beach consistently ranks as one of the prettiest and most elegant beaches in the world?
Buying a beach house in Sarasota sounds like a no-brainer! It is on the beach, and there is bottomless rental demand on platforms like Airbnb and Vrbo — what's not to like? Imagine the salty sea breezes and epic orange sunsets.
Well, all these things are true; however, like any investment, there are some downsides and risks that you should consider before investing in a beach house. Here are some pros and cons of this investment.
Great Return on Investment
Vacation rentals in Florida are quickly becoming the preferred method of accommodation for families. Compared to crowded, small hotel rooms, vacation rentals are affordable and offer privacy as well as a unique and memorable experience every time. This is especially true in Sarasota as the arts are flourishing, with Sarasota Ballet, Asolo Repertory Theatre Troupe scaling new heights.
Also, eating out is an excellent pastime, with an extensive choice of fancy local restaurants and even a few sensational taco trucks.
Also, vacation rentals in Florida generate much higher income than conventional rental properties
Owning a vacation or beach home in Sarasota gives you access to a glamorous and enviable lifestyle that is not only fun but may be great for you. Buying a beach house in Florida means not just having a seaside hamlet that you can escape to but opening a door for other people to do so.
Recent scientific research studies have indicated that just living near a body of water can help increase your sense of physical and mental health and well-being. This can promote a sense of happiness, calmness, and even more creativity.
There is a near-endless rental demand for beach houses in Sarasota, meaning your property will likely be rented out for the whole high season. Some rental property investors even claim that hiring out their rental properties in the peak season generates sufficient income to let them stay in the property for free during the off-season periods.
Owning a seaside property or beach house exposes it to the elements. And in this case, the elements are water, salty sea air, humidity, sand, and strong winds. Flood insurance and property management can add to your financial obligation.
Short Term Demand
As beach homes are usually rented for short periods, they are considered short-term rentals. Usually, vacation rentals have more maintenance costs for repairs and damages. And as people come and go and visitors have no emotional attachment to the property, the turnover rate inevitably requires higher renovation and repair costs.
How Much You can Make Renting a Beach House
Buying a beach home in Sarasota is not an opportunity to get rich quickly. It is a long-term investment that can make money over time through vacation rental income as well as real estate appreciation. So, how much you can earn renting a beach house depends on many factors, such as the location, the desirability, the square footage, and the demand for your beach house.
Every dream will cost something. And investing in a beach house is no different. There are pros and cons to owning a beach house. If you are ready to buy a vacation home, you should consult a professional real estate agent.