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Home Real Estate

The Impact on Property Prices of Living Close To The Beach

by Ethan
3 years ago
in Real Estate
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The Impact on Property Prices of Living Close To The Beach
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The general trend of house prices is upward. This is why it has always been considered a good investment. Although economic downturns, recessions, and other factors can cause house prices to fall, the overall effect in the long term stays the same, prices rise. 

This is one of the reasons young people are struggling to get on the property ladder, prices are rising faster than wages. 

Of course, certain locations are more desirable and this increases the price further. Properties close to the beach are generally more desirable and significantly higher than a similar property inland.

A property near the beach is worth more just because it’s by the sea but there are factors that influence how much more valuable it is. 

Table of Contents

  • The Quality Of The Beach
  • Desirability
  • Facilities
  • The House

The Quality Of The Beach

If you want to live near the beach then you are likely to want to access the beach and potentially even swim regularly in the sea. For this to be achieved you need a beach that has good quality water, an array of facilities and is monitored by Surf Life Saving Australia. This means there are flags telling you where is safe to swim and the beach has volunteer surf lifesavers to help keep you safe.

Naturally, a house near a beach that offers all this will be worth more than a beach that can’t be accessed or has no facilities on it. 

Desirability

Another factor that will increase the price significantly is how desirable the house is. A house that has a stunning view of the beach will be worth more than one that has a sea glimpse or one that is a five-minute walk to the beach. Each of these properties has its advantages but the one with a view of the beach is going to be worth the most.

The further you get from the beach the more the price drops. It’s estimated that the value of a property will increase by 2% if they are situated within just 10 miles of the beach. Outside of this range, the price is likely to drop by as much as 10% per additional 10 miles before stabilizing.

Facilities

This is slightly subjective as people have different demands regarding what facilities are near their home. But, in general, the price of a property will increase further if it is beachside and is in a city. This means that house owners have all the advantages of the beach and the array of facilities offered by a city. 

In short, they have everything they could possibly need on their doorstep, regardless of what they prefer. 

The House

Of course, the house itself makes a difference to the price. The bigger the home the more expensive it generally is. This can be altered by the number of bathrooms, particularly ensuite bathrooms and the other facilities available in the property. 

Equally, the size of the yard can make a difference as most homeowners don’t want to spend every moment of their time at the beach. 

The more desirable a home appears the higher the price it will sell for. As beaches are seen as highly desirable, a house by the beach will always be worth more than one further away.

Ethan

Ethan

Ethan is the founder, owner, and CEO of EntrepreneursBreak, a leading online resource for entrepreneurs and small business owners. With over a decade of experience in business and entrepreneurship, Ethan is passionate about helping others achieve their goals and reach their full potential.

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