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How is the housing market along the Gold Coast? We're soft right now, which means that it's a great buyer's market. I think we are experiencing the readjustments that have been going on for a little bit over the year. Because many of our properties here are second homes, there has been a decrease in sales. Statistically we know in California that second home sales I believe have dropped up about 27%.
Any trends that you've noticed? Our beach destinations here are very popular with Europeans, foreign visitors. I know at least one vacation homeowner who has really tapped into the European marketplace. All her renters who come back year after year are Brits and Germans.
The typical buyer: Many of the people who decide to buy a vacation rental here have actually been vacationing here themselves for a number of years.
What do prospective buyers look for in a vacation property in your area? I think there are three factors. The first is that they're looking for location. Obviously, they want their investment to increase in value over time. The second thing they're looking for, if they're looking for a vacation rental property, of course, is income potential. They want to make sure that they can make money off the rental. But a third factor, at least in my marketplace, is that the buyers are also looking at retirement potential. I see a big trend where the buyers are actually buying a property to rent out as a vacation rental right now, with the intention of ultimately moving into the property and retiring there within the next 15 to 20 years.
Property Type: Well, I think it's a mixture, and I think it depends upon what the people are looking for. Condo rentals are popular here, especially the condos that are very close to the beach. They're just a very easy turnkey, and then people can go play in the water. Single family homes are popular here, but mostly what I kind of call the beach bungalow. You're close to the beach but you've got your own home. These tend to be a little bit more popular, because you've got your own little yard and it's a little bit more private.
Tips for buying a vacation rental home in the Gold Coast area:
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The summer season usually goes from about July 1st through the middle of September. But on the other hand, we also tend to have a strong off‑season, too. Obviously, Thanksgiving, Christmas, Easter holiday times are important times for rentals.
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The critical thing that a vacation homeowner who's going to rent out here needs to do is to make sure that they get to know the neighbors on the lane or on the beachfront where they are.
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The main environmental issue that the vacation homebuyer needs to be aware of is mold.
Meredith McKenzie has more than 17 years of professional real estate brokerage experience in southern California, including certification as a second home specialist and designation as a second home elite agent for HomeAway Real Estate. Her websites are venturacoastliving.com and meredithmckenzie.com.
To get a feel for the California Gold Coast Vacation Rental Market or to find a great vacation property to rent, browse Central Coast Vacation Rentals on HomeAway.com.
Are you a realtor in a vacation market who'd like to do a Q&A? Email us.
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