Working towards a retirement beach house sounds like a lot of work. Beach houses are expensive to buy and maintain so how can they possibly be easy to get.
In this post, we talk about a simple and easy way to buy and easily pay off the mortgage on your retirement home by the time you retire and enjoy the beach life for the rest of your days.
Before we begin, here’s a disclaimer. We are not really talking about beachfront mansions in Malibu. If you have that kind of cash you are probably not worried about retirement anyways. We are instead talking about regular and small homes in places like Oregon coast.
Turn Your Beach Property into a Vacation Home
Assuming you have a regular 9 to 5 job in a city somewhere, you probably do not have the time to go on beach holidays every month. This creates a perfect opportunity to buy a beachfront property and turn it into a vacation home. The money you earn from rentals should help you fully or partially pay the monthly mortgage rates. Depending on your budget and ability to pay monthly mortgage rates, you can buy anything from a beachfront condo to a 4 to 5 bedroom home.
For the sake of this example, let’s assume you have to pay a $2,000 mortgage for your recently bought beach home.
Now, according to stats an average person renting their property on Airbnb earns $924 per month.
Therefore, right off the bat, you can save almost half the cost of your mortgage rate. However, you can do a whole lot more than average.
To help your beach home reach its full earning potential, it’s best to partner up with a vacation rental service. These companies not only take care of your property and ensure it has all the little amenities people want from vacation homes, but they also help you list and promote your vacation home. While they do charge a commission or a monthly fee, they usually make that up by getting you more rentals. Once you recruit the professionals, people would easily be able to find your listing when searching for beach house rentals online and get great service when they arrive at the property.
Once being managed by a professional vacation rental service, you should set a target of earning enough to pay off your monthly mortgage rate. Remember your goal is to get a beach house for your retirement and not to earn money. Unless your property does supremely well, you are probably not going to make a lot of extra money after paying the mortgage and other expenses.
So, your goal should be to earn enough from vacation rentals to cover the monthly mortgage rate and the expenses of hiring a vacation rental service. Even if you are not being able to fully cover the expenses, at the end of it all you get to buy a beach home at a fraction of the cost.
Things You Need to Do Turn Your Beach Home Into a Vacation Rental
Insurance: While it can be profitable to rent out your home, it can also get damaged by bad weather or drunk guests. That’s why it’s important to get property insurance that will cover the cost of all damages that may happen. Airbnb offers insurance coverage to all hosts to cover the cost of damages. However, you still need insurance for bookings that came through other platforms and damages caused by your staff or the weather.
Toiletries and Supplies: If you partner up with a vacation rental service, then they will take care of the housekeeping. However, if you are doing it on your own, you would need to buy supplies like shampoo, conditioner, body wash, toilet paper, toothpaste, toothbrush, and others.
Smart Locks: Getting a Wi-Fi enabled lock is the best way to grant access to your guests remotely. These locks are opened by passcodes, which you can change after the guests leave. This makes managing your home a whole lot easier, especially if you live far away from your beach home.
Why It’s a Relatively Safe Bet
Buying a house may seem like a big deal, but it’s actually safer than a lot of other investments. People often spend thousands of dollars on investments that hold no real value. That means if the investment fails, they lose all of their invested money. This is definitely not the case when you buy a beach house or a home you plan on turning into a vacation rental. Why? Because the house itself is an asset that appreciates in value over time. If things don’t work out after a year or two, you can put the house back on the market and recover your money. Depending on the real estate conditions, you might just earn a nice little profit just by selling your house at a later date.