For many individuals, their idea of paradise involves sand, sun, and miles of water. But what’s not paradise is how much beach houses cost. If you can believe it, almost a thousand people are moving to Florida every single day! There’s been a 15% increase in the population of the state over the last 10 years. This has a serious impact on the housing market.
In particular, the housing market of beachfront properties has gone wild. So many people who are moving to Florida dream of owning a beach house. This is because of all of the benefits it can provide and the type of lifestyle it makes possible. Unfortunately, there is only so much beachfront property available in the state. So, the demand is putting a strain on the supply, causing a serious rise in the price of beachfront property.
If you have always wanted to own a beachfront home, our team at Your Home Sold Guaranteed Realty - Florida Waterfront can help. We will also provide you with all of the information you need to determine your budget. You should account for the rising costs of beachfront property ownership due to inflation. There are also spiking interest rates, and constantly increasing housing prices.
There are a few specific reasons why beach houses cost so much in Clermont Chain, FL. We have broken them down into the following categories:
- Supply and demand
- Luxury amenities
- Costs for maintenance and insurance
Each of these contribute to the ever-rising costs of beachfront homes in Clermont Chain and the larger Florida region.
Location Is Key
In the real estate industry, as the old adage says, location is everything. Why own a home with a beach view when you can own one on a beachfront? Well, price is one reason. The beachfront property is going to be the more desirable location for the majority of people. So, the price is going to reflect that.
Whenever a home buyer wants a beachfront property, they should be prepared to pay a premium. If a home buyer is willing to accept a slightly less ideal location, the price will be reduced. As expected, location is key. It is a primary determining factor in the price that home buyers will pay for that property.
High Demand, Low Supply
In recent years, there has been a serious influx of people moving from other states (and countries) to Florida. The ideal weather and perfect beach environments in Florida make it a highly desirable location in which to live. There are also many more tourists and snowbirds coming to the state than ever before.
With so many new residents and visitors, that is increasing the demand for homes all throughout the state, especially those located on the water. Beach houses cost so much because the number of them that exist and are available has been steadily dwindling, so the prices on them are steadily increasing. It is a simple matter of supply and demand.
Beachfront homes in Florida also often come with luxury amenities that are quite desirable. Because people are already paying a premium just for the home and property, they will also expect that the home is equipped with high-end amenities, including smart appliances, game rooms, swimming pools, hot tubs, spa-like bathrooms, terraces/patios/balconies with a beachfront view, gourmet kitchen, private docks/boardwalks, super fast Wi-Fi, and much more.
Those homes without these types of amenities will obviously come at a lower cost, but the beachfront setting will still be the reason that those homes will remain more expensive than homes which are located more in-land. Depending on the budget you have set for your new beachfront home in Clermont Chain, FL, you can determine the level of high-end amenities you can expect in your house.
Costs of Maintenance, Taxes, and Insurance
Another reason beach houses cost so much in Clermont Chain is because of the maintenance requirements, insurance, and taxes. The upkeep of a beachfront property is far more rigorous than those without the abutment on the water. For many homeowners, it is simpler to hire a company that will take care of such matters, but this maintenance schedule will also come at a premium.
As for insurance, most homeowners want to have peace of mind knowing that their homes are covered just in case of any type of emergency. Flood, wind, and other hazards are three types of insurance that are often required for beachfront homes but do not come standard in most Florida insurance policies. In fact, you may not even be able to get all 3 from the same insurance provider.
Finally, taxes on a beachfront home are going to be much higher than those of in-land houses. All Florida homeowners will have to pay an annual property tax which is assessed based on the taxable value of the home. Thankfully, Florida is one of the few states which does not have a state income tax. If you decide to rent your property during certain months of the year when snowbirds often appear, you will be charged a tax on the net profit on the rental income.
Our Realtors Will Help You Find the Ideal Clermont Chain Beach House
If you are considering buying a beachfront property in Clermont Chain, FL, our team at Your Home Sold Guaranteed Realty - Florida Waterfront has the experience, knowledge, and skills to help you find the ideal home and make sure you are aware of all of the costs associated with the property. You may be wondering why beach houses cost so much, and our realtors are happy to explain all of the necessary expenses and how to budget properly for them.
The experienced and skilled realtors at Your Home Sold Guaranteed Realty - Florida Waterfront will use their expertise and knowledge of the local real estate market to ensure you have the best possible home buying experience. Feel free to give us a call at 407-307-2617 or fill out the form below with the requested information, and we will send you a detailed response as soon as possible about the beginning of your real estate journey.
We look forward to hearing from you and getting you started in the beachfront property buying process.