May 28, 2024

Investing in Paradise: The Financial Benefits of Owning a Custom Beach Home

May 28, 2024
Discover why owning a custom beach home in Crystal Beach, Texas, is not just a dream but a smart financial move in our latest blog, "Investing in Paradise: The Financial Benefits of Owning a Custom Beach Home." Gain exclusive insights from builder Landon Wright and realtor Beth Terminella as they reveal the advantages of building versus buying, uncover the secrets to maximizing rental income, and highlight the long-term value of beachfront properties. Dive into this essential guide and learn how you can turn your dream of a personalized coastal sanctuary into a profitable reality.
1980 Pedregal

Picture this: waking up to the gentle rhythm of waves and stepping onto your slice of Crystal Beach's sandy paradise. Investing in custom beach homes here isn't just about owning luxury—it's about unlocking a lifestyle where every day feels like a dreamy getaway.

Owning a beach home is a dream for many, and when it comes to making that dream a reality, deciding whether to build a custom home or purchase an existing property is a significant choice. To explore the financial benefits of owning a custom beach home, we spoke with Landon Wright, President of Prestige Custom Builders, and Beth Terminella, an experienced realtor with One 10 Realty Group. Their insights provide a comprehensive view of the advantages and considerations for prospective beach home owners.

The Allure and Financial Advantages of Beachfront Properties

Beachfront properties have long captivated the hearts of buyers, offering a unique blend of luxury and natural beauty. In addition to their aesthetic appeal, these properties provide significant financial benefits. Understanding the allure and economic advantages of owning a beachfront home can help buyers make informed investment decisions.

Landon highlights the key financial benefits of owning a beachfront property: "Advantages of owning beachfront property are excellent return on investment, the potential for reliable income stream and easy access to a wonderful vacation home within steps of the beautiful Texas coast." The combination of a high ROI and the possibility of rental income makes beachfront properties particularly appealing to investors.

Beth adds that the scarcity of beachfront land in Crystal Beach, Texas, drives demand: "The demand for luxury beachfront properties in Crystal Beach, Texas, is pretty hot right now. We're kind of running out of beachfront property in the area. So, the folks who are lucky enough to snag a slice of that prime real estate want something special – something luxurious."

Demand Drivers for Custom Beach Homes

Both experts agree that the demand for custom beach homes in Crystal Beach is on the rise. Landon points out the benefits of the area: "Quieter beaches, lower cost of living in comparison to other beachfront communities across the nation, still plenty of undeveloped properties with beach views."

Beth echoes this, emphasizing the impact of short-term rentals: "During the COVID-19 pandemic, there was a big spike in short-term rentals as folks looked for safe vacation spots. Crystal Beach doesn't have big chain hotels, so these short-term rentals became super popular. That's why there's such a high demand for custom beach homes – they're perfect for those short-term getaways."

Building vs. Buying: Financial Considerations

When deciding between building a custom beach home or purchasing an existing property, financial considerations play a crucial role. Each option comes with its own set of costs, benefits, and potential challenges. By comparing these financial aspects, buyers can determine which path best aligns with their goals and budget.

When comparing the cost of building a custom beach home to buying an existing property, Landon explains the long-term benefits of building: "The advantage of building vs buying is the peace of mind of knowing the structure is built to new building codes, the warranties provided by the builder and products manufacturers, and the peace of mind of knowing that you are the first owner of the home."

Beth supports this view, noting the potential issues with existing homes: "When you buy an existing home that's been soaking up the salty air for, say, 5 years or more, you might be in for some surprises. Some of those essential systems like plumbing, electrical, or HVAC could start acting up. On the flip side, when you build your own custom beach home, you're starting fresh. All the systems are brand spanking new."

Managing Costs and Financial Challenges

Building a custom beach home comes with its own set of financial challenges. Landon emphasizes the importance of budgeting and planning: "At Prestige, we do a great job with laying out the entire bid before the project starts. There are variables that are out of our control such as lumber and other spikes in material costs. We work with the customer closely when this happens to keep as close to their building budget as possible."

Beth also points out unexpected costs: "Building your dream beach house comes with its surprises. One biggie? Furnishing the place from top to bottom. It's not just indoor furniture – you need outdoor gear and maybe even some fancy amenities like a pool."

Rental Income Potential and Design Considerations

For those considering rental income, Beth shares valuable insights: "When it comes to maximizing rental income, having a spacious place is key. Think four bedrooms or more – the more heads in beds, the better. We're in the midst of an amenity war... Renters these days want it all – pools, hot tubs, pickleball courts, you name it."

Landon concurs, noting the importance of design in rental appeal: "When looking at design aspect of it, deciding whether this is a rental, personal property of blend of the two. At Prestige, we focus on using manufacturers with the best warranties in the industry."

1241 N Stingaree Dr

Long-term Value and Tax Considerations

Looking ahead, Beth is optimistic about property values: "One big factor shaping the future value of beachfront properties in Crystal Beach is FEMA's insurance coverage... With demand for FEMA-insurable spots on the rise, it's pretty safe to say that the value of beachfront properties in Crystal Beach is only going one way – up."

She also mentions tax incentives: "When you're building a shiny new beachfront palace, you can use cost segregation to your advantage. It's like a fast track for depreciation... Instead of waiting for decades to claim depreciation on your property, you can speed things up and take a big chunk of it in the first year."

In Crystal Beach, owning a custom beach home blends luxury with an escape to coastal serenity. From solid returns on investment to the allure of sun, sand, and sea, these properties are a beach lover's dream. Amidst market insights and financial considerations, one truth remains: investing in a beach home has many advantages.  As Landon puts it, "Building a custom beach house offers unparalleled personalization, allowing homeowners to tailor every detail to their preferences, potentially leading to higher property values and lower long-term maintenance costs."

Beth sums it up: "Custom beach home ownership can be a perfect fit for clients whose financial goals and aspirations align with their desire for a personalized living space... It's about creating a sanctuary that reflects their unique vision and fulfills their long-term aspirations for coastal living."

In conclusion, whether building or buying, investing in a beach home in Crystal Beach offers numerous financial benefits, from high returns and rental income to the personal joy of owning a slice of paradise.

If you want to create your future home in Crystal Beach, email us at

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