It’s everyone’s dream to own a house near the water. Whether by a lake or beach, having a home near a body of water exudes relaxation and luxury. The old mantra of real estate is “location location location,” and there isn’t a better location to buy than on the coast.
Dana Point, CA, is a beautiful suburb overlooking the Pacific Ocean. Just north of San Clemente, Dana Point is situated between Los Angeles and San Diego, offering a relatively convenient commuting distance to either one. Dana Point real estate is precious and an excellent investment because of its location, but you should understand the pros and cons of buying coastal real estate before purchasing property in this community.
Mortgage interest rates to rise
One thing to keep in mind when buying real estate anywhere in the country in 2022 is that mortgage interest rates are likely to increase later this year. The Federal Reserve has stated that it will raise interest rates later this year, and likely among them are mortgage interest rates. If you’re looking to buy Dana Point real estate, it may be in your best interest to buy sooner than later. These properties are already expensive, so don’t pay more than you have to.
If you’re looking to sell Dana Point real estate, the current low mortgage interest rates could work to your advantage. Buyers know that these low rates aren’t going to last forever, which might give them a sense of urgency to buy. This means they might be willing to offer more for your Dana Point homes for sale if they know they won’t have to pay as much in interest. Whether buying or selling Dana Point real estate, it’s best to get the process started soon.
Home values likely to increase
Thanks to its location, Dana Point real estate is extremely valuable, and this won’t change any time soon. Real estate that is right on the coast is immediately vastly more valuable than it would be inland, and Dana Point is no exception.
Because coastal living will always be in such high demand, the properties will continue to increase in value. The current median home sold price in Dana Point is $1,622,500, up from $779,000 in January of 2019. This isn’t to say that your investment will more than double in three years, but these figures show just how valuable the real estate in the area can be. There are no signs that would suggest that this trend won’t continue. The median home sold price won’t keep doubling every three years, but it is likely to increase because the area is so coveted.
Understand coastal living upkeep
Owning real estate on the coast can come with some unique challenges for upkeep. The salty sea air can damage wood and rust metal more quickly than in inland homes. This isn’t a problem exclusive to coastal living — salt air corrosion can affect homes as far as 50 miles away from the ocean — but it can be more pronounced if you live in a town right on the water like Dana Point.
When looking at Dana Point homes for sale, it’s important to notice any rust on metals on the exterior of the house or wood decay to avoid overpaying. You should either pay top dollar for a home with none of these problems or pay less for a home that needs to be fixed up. You will ultimately have to determine if you’ll make a better return on your investment by buying a brand new house or fixing up an old one.
Any renovations would instantly and significantly increase value, so if you’re looking to buy with the sole purpose of flipping, fixing up an old house may be the best option. In many cases, the repairs will be relatively cheap but make a noticeable difference in the Dana Point real estate appearance.
Increased slip fee costs
When people dream of owning real estate on the water, it’s often accompanied by visions of a boat. Dana Point is a great place to live if you’re looking to own a boat or you already have one.
The Dana Point Marina Inn is conveniently located and offers tons of space for storing your boat, but one thing to consider is that the slip rates at the marina increased late last year. This means that it became marginally more expensive to store your boat at the marina. Groups of boat owners at the marina have since organized to protest. If you’re considering buying Dana Point real estate, the recent increase in slip rates is just a drop in the bucket. The return on your investment you will make by selling your Dana Point real estate when you choose to move will more than cover these fees and any other increase in slip rates in the future.
Buying Dana Point real estate
If you’re ready to start the process of buying Dana Point real estate, contact a trusted and knowledgeable realtor like those at The Lynch Group. Dana Point homes for sale are valuable, so you want to make sure you’re getting the best possible deal.
