Tag: beach

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Best places to buy a beach house in the U.S. ranked

Best places to buy a beach house in the U.S. ranked

Mansion Global host Kacie McDonnell travels to Miami Beach, Fla., to explore the luxury hotel towers lining the coast.

Despite soaring real estate prices over the past few years, demand for both purchasing and renting vacation homes remains strong, especially among folks seeking a place on the beach.

For prospective buyers looking to find a second home that will put money in their pockets while they are away, a new report ranks the most profitable waterfront locations for making a return on your investment.

Vacation rental management platform Vacasa has released the top ten destinations to purchase a beach home in the U.S. in 2023, and some of the results may surprise you.

MORTGAGE RATES FALL, BUT LOW INVENTORY HAUNTS WOULD BE HOMEBUYERS

Here are the 10 most profitable markets to purchase a beach home in 2023:

1. Lake Anna, Virginia

view of boat house on Lake Anna in Virginia

Boat house on Lake Anna in Virginia (iStock / iStock)

Taking the crown this year is Lake Anna, Virginia, the second-largest lake in the Old Dominion, spanning three counties. One side of the lake is public, offering waterfront dining, boat launches and marinas, while the other is private and prohibits commercial operations.

Vacasa found Lake Anna offers homeowners the highest annual cap rate, or annual rate of return on investment, than any other waterfront locale in the nation at 12.1{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. 

Median home sales in the area are around $385,000, and median gross rental revenue comes in at over $69,000.

2. Hatteras Island, North Carolina

Hatteras Island

Hatteras Island, N.C., waterfront mansions and houses (Jeffrey Greenberg/Universal Images Group via Getty Images / Getty Images)

The No. 2 pick this year is Hatteras Island, North Carolina, a coastal destination that attracts upward of 2.5 million visitors each year.

The median home sale price in the seven-village area is $412,500, median annual gross rental revenue is more than $58,000 and the cap rate is 9.51{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}.

3. Navarre, Florida

Beach resort Santa Rosa Sound, Florida

Beach resort on Santa Rosa Sound, Fla.  (Education Images/Universal Images Group via Getty Images / Getty Images)

This little beach town outside Pensacola rated No. 3 on the list with a cap rate of just over 8{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}.

INVESTORS RETREAT FROM COMMERCIAL REAL ESTATE BONDS

Homes in Navarre Beach sell for a median price of $370,000, and annual gross revenue is just over $50,000.

4. Palm Coast, Florida

Palm Coast

High angle view of a beach at Palm Coast, Fla. (iStock / iStock)

This golfing community between St. Augustine and Daytona Beach draws more than 1 million visitors annually, and vacation property owners average a cap rate of 7.13{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}.

Palm Coast homes sell for a median price of $345,000, and median annual gross rental revenue is above $43,000.

5. Surf City, North Carolina

beach homes Surf City, North Carolina

Waterfront homes in Surf City (iStock / iStock)

A home in Surf City, North Carolina, on Topsail Island, will set vacation homebuyers back roughly $520,000. 

But annual gross revenue is expected to come in to the tune of $50,000 with a cap rate of 5.8{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}.

6. Gulf Shores, Alabama

Gulf Shores

The beach community of Gulf Shores, Ala. (Carol M. Highsmith/Buyenlarge/Getty Images / Getty Images)

Gulf Shores’ family-friendly atmosphere and activities draw more than 8 million visitors each year, making it attractive to vacationers and investors alike.

CELEBRITY REAL ESTATE AGENT SAYS LA MARKET TAKING ‘SLOW’ TURN AS MANSION TAX GOES INTO EFFECT

Vacation homes in the Alabama beach town cost a median of $520,000 and rake in annual gross rental revenue of $49,000 with a cap rate of 5.5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}.

7. Destin, Florida

view of coastal Destin, Florida

Sunset in Destin, Fla. (iStock / iStock)

Destin is a top destination on Florida’s Emerald Coast, drawing 5 million visitors every year, and over 62{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of those who stay overnight book vacation homes and condos.

Picking up a place in Destin will cost around $525,000, but the return is roughly $51,000 annually at a cap rate of 5.32{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}.

8. North Topsail Beach, North Carolina

North Topsail Beach

An aerial view from the side of condos near the ocean in North Topsail Beach (iStock / iStock)

No. 8 on the list, North Topsail Beach, North Carolina, is on the sleepier side of Topsail Island and just a short jaunt from No. 5 Surf City.

REAL ESTATE GIANT MAKES PREDICTION OVER HOUSING AFFORDABILITY SQUEEZE

But with the peace and quiet comes a bit steeper home price at $558,000. Still, the area has a cap rate of 5.26{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, so investors can expect gross rental revenue of $49,600 per year.

9. Rockaway Beach, Oregon

Nehalem Bay State Park

A backpacker carrying a red sun umbrella makes his way down to Rockaway Beach in Nehalem Bay State Park, Ore.  (iStock / iStock)

Vacasa notes that the Oregon coast may not be known as a sunny destination, but travelers looking for a cooler climate are still drawn to its beaches.

Rockaway Beach buyers will shell out around $400,000 for a home there and still enjoy roughly $39,000 in annual revenue at a 4.66{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} cap rate.

10. 30A Florida

Santa Rosa Beach,

View from a vacation home in Santa Rosa Beach, Fla. (Vrbo / Fox News)

Highway 30A, a 20-mile stretch of Florida beach towns between Destin and Panama on the Emerald Coast made No. 10 on Vacasa’s list.

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A home along 30A costs about $640,000. With a cap rate of 4.6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, buyers can expect annual revenue of around $55,000 by renting it out.

FOX Business’ Hayley Rieman contributed to this report.

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Barbara Corcoran says small business needed at beach towns: ‘It’s good for everybody’

Barbara Corcoran says small business needed at beach towns: ‘It’s good for everybody’

It can be not all small business as typical for shore cities this summer.

Amid sky-significant inflation and a labor current market that is deterred low-wage employees from returning to jobs, tiny organizations at seasonal communities are however having difficulties to stay afloat.

Cousins Maine Lobster, a “Shark Tank” results story that currently has 40 owned and franchise trunks nationwide with 9 dine-in dining places, just opened a new area in Asbury Park, New Jersey — a seasonal city which is betting large on the return of the shore.

Trader Barbara Corcoran (who is also a New Jersey indigenous) told Yahoo Finance that communities like Asbury Park are a “going for walks symbol of what accomplishment looks like in challenging periods.”

“When you go to a neighborhood like Asbury Park, they have had several stores near. A ton of persons can shed faith and think that this is likely to be the upcoming,” she reported, alluding to the many financial challenges corporations confront today from inflationary pressures to the restricted labor market witnessed at dining places, bars and other eateries.

In accordance to formal govt information, despite the fact that foodstuff service employment have fairly bounced again considering the fact that the commence of the pandemic, employment in the sector remains 6.4{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} beneath February 2020 levels as purchaser demand from customers surges.

However, Corcoran explained that Cousins’ new brick-and-mortar spot can provide as inspiration for other little enterprises “to make anything happen,” and revive the nearby local community in the procedure.

“It is excellent for everybody. It’s like sharing the excellent information. All people does greater mainly because of it.”

Items served at Cousins Maine Lobster's new Asbury Park location

Goods served at Cousins Maine Lobster’s new Asbury Park place

The actual estate mogul went on to explain the rewards of compact towns and communities, noting that enterprises frequently do not see the similar degree of purchaser loyalty in larger sized metropolitan areas and metropolises.

“People today enjoy when you do one thing for the neighborhood. They arrive back, they give you their loyalty and you become part of the fabric of the city,” Corcoran exposed.

“With appreciation, organization usually does improved. You won’t be able to underestimate the electricity of men and women appreciating that you’ve brought anything good to the group,” she ongoing.

It really is superior for everybody…Barbara Corcoran on little enterprise boom in seaside towns

Sabin Lomac, a single of the Cousins Maine Lobster co-founders, extra that “acquiring tiny corporations prosper in communities like this is crucial.”

Asbury Park is “historically a seasonal location when you are at the seaside, so building positive that locals arrive down and they support firms 12 months-round is tremendous essential,” he emphasized.

Lomac added that, when it will come to labor, “selecting domestically and offering folks prospects to mature within just a organization” are crucial things to accomplishment.

“It truly is enjoyable. It gets individuals involved and far more immersed in the neighborhood, and it really is a way to be portion of one thing that is a spot area,” he continued.

Corcoran: Corporations need to ‘welcome change’

Shark Tank's Barbara Corcoran

Shark Tank’s Barbara Corcoran claims modest organizations need to have to ‘welcome change’

Total, Corcoran advices all of her small business to “welcome modify,” specially in the midst of a hard economic natural environment.

“You have to have a mentality that you are looking for what the change is and that it truly is not a risk. But, instead, how can I take gain of it?”

“If I seem at all the corporations I have invested on ‘Shark Tank’ — 112 firms to date — about a third of them have moved ahead [amid] the pandemic, but most of them have fallen to the facet,” the investor observed.

She spelled out that the “difference among people who have moved ahead and those who have fallen behind is actually an openness for change and enjoy of their individuals.”

“The a lot more you choose care of your individuals, the more they choose care of the consumer, and the better your enterprise does,” she uncovered.

“It can be that form of heart and soul that definitely pushes folks forward, and it truly is been proven in this very last pandemic.”

Alexandra is a Senior Enjoyment and Food Reporter at Yahoo Finance. Abide by her on Twitter @alliecanal8193 and e mail her at alexandra.canal@yahoofinance.com

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