April 15th 2024

Buying a beach home can be a dream come true, but it often involves compromises to ensure you're making a wise investment and selecting a property that meets your needs. Here are some compromises to consider:

1. Location vs. Budget: Beachfront properties can be expensive. Consider compromising on the exact location to find a property that fits within your budget. A slightly inland property or one in a less popular area might offer better value.  If you are looking for a single-family home without a big price tag, the off-shore areas of Cape May Court House, North Cape May, Swainton, etc. could be just what you're looking for.  The off-shore areas are still only 10-20 minutes to the ocean and single family home prices are significantly less than on-island.  Those looking for a large lot will definitely want to look off-shore.  Also, consider bayfront.  The "bays" of the barrier islands are wonderful places to swim, boat, fish, etc, and you're still only a few blocks to the ocean.

(Annual Harvest Festival in downtown Cape May Court House)

2. Property Size: A smaller beach home might be more affordable but could lack the space you desire. Consider compromising on size if the location and amenities meet your needs.  The Shore offers everything from mega-mansions to no-maintenance studio condos by the beach.  

3. Amenities: Determine which amenities are must-haves and which ones you're willing to compromise on. For example, you may prioritize a pool over being on beach-block, or vice versa.  One option for lower budgets are "seasonal use" condos, which are primarily former hotels converted into condos.  Because they were not built with heat in the mid-20th century, the properties open March-November.  They do offer lower asking prices but a local lender or cash is usually required for this unique property type.  

(Seapointe Village, a first-rate resort located between Wildwood Crest and Cape May)

4. Condition of the Property: A fixer-upper beach home might be more affordable but could require significant renovations. Decide how much work you're willing to put in and compromise accordingly.  While finding properties to quickly flip for a nice profit is mostly a thing of the past, home-buyers absolutely can still build "sweat-equity" in fixer-uppers.  If this sounds like you, look for properties in "original condition" but well kept.  Things like a dated kitchen or flooring are easy renovations and will help you move up to the next property.

5. Rental Potential: If you plan to rent out the property when you're not using it, compromises may need to be made to ensure it meets the needs of potential renters, such as proximity to attractions or amenities.  At the Jersey Cape, some condo associations also have on-site rental management, where they handle everything for you, usually for a fee around 20%.  Some associations have rental restrictions such as allowing pets only for owners, how often the property can be rented, etc.  Generally speaking, however, the vast majority of Shore home-owners can enjoy income from rentals if they choose to do so.

6. HOA Fees and Regulations: Some beachfront communities have homeowners' associations (HOAs) with strict rules and high fees. Consider whether you're willing to compromise on these factors for the benefits of community amenities and maintenance.  Often, if you see a condo has a high HOA fee, it is because it covers some or all of your utilities, so don't let a large fee number scare you off.  Others, with many amenities like Seapointe Village, offer such strong rental rates that owners use that to off-set high fees.  99% of HOAs run the same way at the Shore, with only minor differences on things like allowing pets, rental lengths, useage availability, etc.

7. Resale Potential: Think about the long-term resale potential of the property. Compromising on certain features that may not be in demand in the future could help ensure a smoother resale process.  If your home has at least one sellable feature, such as a being well-kept or being near the water, you're in good shape!  Demand for Shore homes is strong even when the national market is not due to limited inventory.  The size of the Jersey Cape helps ensure your equity will go up by the simple fact that the county is very small, and there is only so much space for new properties while demand keeps surging.  As you can see in this graph, home prices have consistently been increasing over the past 14 years, with major gains since 2020.