Ocean Pines Vs Ocean City Real Estate: Which Is a Better Investment?
It's not uncommon for buyers to ponder the decision of whether to buy a home in Ocean Pines or Ocean City, Maryland. Even though both areas are very close to each other, they're like two different real estate markets. Both markets offer attractions, amenities, and the beach lifestyle, but depending on your budget, preferences, and goals, each market has different opportunities.
When you're considering your long and short term goals of your next beach home, which is the better market to invest? In this article, I'll compare the two markets and give you some ideas to consider when searching Ocean Pines, MD real estate or Ocean City, MD real estate for sale.
Searching within your Budget
Whether you're searching in Ocean Pines or Ocean City, you'll find a variety of options of homes for sale. To create your budget, you will need to narrow down your wants and needs for a home. This can be a difficult task in Ocean City, since there are over 1,100 condo buildings, each with its own charm.
Let's consider the median sales price in the Ocean Pines and Ocean City, MD real estate markets. In fact, both markets had the same median sale price in August 2017, which was $255,000. So, what can you buy for around $250,000?
Ocean City, MD Real Estate: $200,000 - $300,000
If you're shopping in Ocean City, you'll find most of your options in this price range are condos. However you may need to compromise on square footage or number of bedrooms for a better view or closer distance to the beach.
For example, if you're looking for an Oceanfront condo for sale between $200,000 and $300,000, there are more options available with 1 or 2 bedrooms, which may be more than enough for your family. However, if you're looking for more space, single family home options are more limited compared to Ocean Pines.
A budget of $200,000 to $300,000 in Ocean Pines offers a variety of single family homes, townhouses, and a small selection of condos, all of which are only a few miles from the beach. You may even be able to find a canal front home in the Pines.
Condo Living Vs. Single Family Homes
There are more condos for sale in Ocean City, MD vs single family homes. If you're searching Ocean City, MD condos for sale, you'll need to consider condo living and the costs associated with it. Condo living isn't for everyone, but it's popular in Ocean City. You need to understand your options. It's simpler when you work with an Ocean City, MD Realtor that can help educate you.
Both Ocean City and Ocean Pines offers condominiums. However, Ocean City offers more. Both markets offer single family homes, but the location, your budget and your wishlist will greatly impact your decision to buy a home in either location.
Amenities, Attractions, & Shopping
Not all condo buildings offer Amenities in Ocean City. But, it's pretty safe to say there are plenty of shops, grocery stores, gas stations, and restaurants to choose from in OC. If you're considering buying an Ocean City, MD Vacation Rental, having amenities may impact your gross vacation rental income.
Ocean Pines offers several pools, tennis courts, boat docks, and the Ocean City, MD beach club on 48th street, but you'll need to drive into Ocean City to experience the beach, boardwalk, and attractions. You'll find a grocery store at the South Gate entrance of Ocean Pines and others in close driving distance.
Vacation Rentals & Year Round Rentals
Ocean City Vacation Rentals
If you're looking to by a place near the beach for Vacation Rental Income, Ocean City is one of the most attractive places for vacationers since it's so close to the beach. Vacationers often have their wishlist for a rental just like a home buyer will. Most of the time, they want to be Oceanfront or close to it, but their budget may greatly impact their available options.
Looking to buy a Vacation Rental in Ocean City, MD? Read my blog article, What Properties Make the best Ocean City, MD Vacation Rentals?
Ocean Pines Vacation Rentals
Ocean Pines offers an alternative. It offers single family home vacation options for potentially a fraction of the cost they'll pay near the beach. This may give a family the option to rent a larger house for less money. Also, Ocean Pines is a great place to live year round, so if you get tired of renting your home as a vacation rental, you have the option to rent it as an attractive year round rental.
Cost of Living
Cost of living expenses are an important part of your beach home search. Both markets offer different options.
Ocean City Cost of Living
In Ocean City, many beach home purchases are condos. Condos typically have condo association fees and they can average $2,000 to $5,000 a year depending on location, amenities, and building size among other factors. There are options available with little to no condo association fees.
Other than a few streets in North Ocean City and West Ocean City, Ocean City, MD real estate has city taxes. However, the city tax rate isn't unbearable. It's reasonably low. In fact the tax rate is $0.4727 per every $100 of the assessed value. You can learn more about Ocean City, MD real estate taxes here. On a property that is assessed at $255,000, you'll have an extra $1,205.38 a year in city taxes.
Ocean Pines Cost of Living
Ocean Pines, MD real estate comes with HOA fees. However, it's $921 a year for a dry lot (or a lot that is not waterfront). You also don't have any city taxes. Some communities within Ocean Pines, like the Parke at Ocean Pines, Point's Reach, and areas in Mumford's Landing, have an additional HOA fee.
Ocean Pines is a diverse real estate market full of vacationers looking for spacious living close the Ocean City and full time residents.