What to Consider Before Buying a Home by the Coast

Buying a coastal home is something many people dream about — waking up to the ocean, walking to the beach, and settling into a slower, more grounded lifestyle. But purchasing by the coast, especially in the Illawarra, comes with its own set of factors that most buyers overlook.

This guide breaks down the key things to understand before you commit, based on what I see every week on the ground from Thirroul to Shellharbour.

TL;DR — Buying on the Coast in the Illawarra

• Check hazard maps early — erosion, flood zones, and slope risks vary from suburb to suburb.

• Salt exposure adds long-term costs — especially in Austinmer, Bulli, Sandon Point & Thirroul.

• Insurance premiums can be three times higher compared to inland suburbs; confirm them before you commit.

• Short-term rental rules differ across Wollongong & Shellharbour — know the suburb rules first.

• Seasonality affects yields — winter softens demand; summer surges.

• Lifestyle fit matters — access to cafes, trains, schools and walkability changes from suburb to suburb.

• Coastal pockets carry price premiums — especially those east of the train line or within 500m of the water.

• Work with a local expert — coastal buying is about risk, value, condition, and long-term cost.

1. Understand the Local Coastal Environment

Not all coastal suburbs behave the same way. The Illawarra coastline has a mix of cliffs, dunes, flood-prone flats, and exposed beachfront pockets — and each affects property value differently.

Erosion & Coastal Hazards

Areas such as Thirroul, Woonona, and Corrimal East have been identified as having erosion and coastal hazard lines in council mapping. Some blocks sit safely behind secondary dunes, while others are located in zones that may require additional engineering or development restrictions.

Salt Exposure

Homes in Austinmer, Bulli, and Sandon Point are exposed to high levels of salt. This affects:

• exterior paint

• window frames

• roofing

• timber decks

• stainless fittings

When assessing a property, I often check for corrosion on hinges, gutters, and balustrades — it provides a quick indication of how well the home has been maintained.

Cliff and Slope Areas

Suburbs like Stanwell Park and Coalcliff are situated on dramatic, elevated terrain. Beautiful views, but:

• Geotechnical reports may be required

• Drainage needs to be monitored

• Insurance premiums can differ

Understanding the land beneath the home is as important as the home itself.

A modern coastal home showcasing its architecture and beachfront location.

2. Flooding, Overlays & Insurance

Risk assessments highly influence coastal purchases.

Flood Mapping

Low-lying areas in Towradgi, Fairy Meadow, Port Kembla, and Shellharbour Village can fall within flood overlays.

If a property is mapped as "high hazard," you may face:

• limited lending options

• higher insurance premiums

• restrictions on future renovations

• additional compliance requirements

I always run council flood layers and cross-check them with insurers before a client proceeds.

Insurance Costs

Insurance on coastal property can vary dramatically. A Towradgi home 200m from the beach can cost triple what a similar inland property costs. Buyers rarely factor this in.

Before you fall in love with a home, you need to know the actual holding cost.

3. Is a Coastal Home a Good Investment?

It can be — but only if you understand the Market.

Here's what I see across the Illawarra:

Demand is consistently high.

Coastal suburbs like Thirroul, Austinmer, Bulli, Woonona, Kiama and Shellharbour Village maintain strong demand due to limited supply and strong lifestyle appeal.

Rentals can perform well — with rules in place.

Short-term rentals are tightly controlled in some pockets. Wollongong LGA has caps and notification requirements, while Shellharbour has guidelines regarding high-turnover rentals.

If you're buying for Airbnb, you must first familiarise yourself with the suburb's rules.

Seasonality matters

Winter is softer for holiday demand. Spring and early summer are typically intense periods for rental yields. If you rely on consistent rental income, you need to factor in potential periods of vacancy.

Maintenance costs are real.

Salt, wind, and moisture = higher holding costs. Even well-maintained homes on the coast need more frequent upkeep.

A coastal property can absolutely grow in value — but only with the right strategy, suburb, and condition.

4. Lifestyle Considerations (This Is Where Most Buyers Decide)

Think about how you'll actually use the home:

Proximity to amenities

Some suburbs offer excellent beach access but limited day-to-day convenience. For example:

• Austinmer: stunning beach, quieter village feel

• Thirroul: schools, cafes, express train, larger community

• Woonona: family-friendly, substantial value relative to proximity

• Shellharbour Village: restaurants, marina, walkability

• Kiama: coastal lifestyle with a township feel

Your long-term satisfaction usually comes from the mix of lifestyle + convenience.

Commuting considerations

If you're commuting to Sydney, the northern Illawarra offers better options via the express train. Many of my clients choose Thirroul, Bulli, or Wombarra for this reason.

A Shoreline with a warning sign highlighting potential flood risks.

5. Budget & Finance for Coastal Purchases

Coastal stock is diverse — and so is the pricing. Homes east of the train line or those located within 500m of the water often command a premium.

Before you buy, understand:

• higher insurance

• potential council compliance costs

• maintenance and renovation requirements

• strata fees (if apartment or townhouse)

• Lending restrictions on high-risk zones

If a home is located in a "coastal hazard zone," some lenders may require additional paperwork and limit borrowing.

Having your finances structured correctly makes negotiation far easier.

6. Work With Local Experts Who Understand the Coast

Coastal buying in the Illawarra is a specialised process.

I see buyers fall into the same traps:

• Not reading the coastal hazard lines

• Underestimating insurance costs

• Ignoring salt damage

• Not understanding short-term rental rules

• Buying into high-risk pockets without knowing it

A good coastal purchase isn't just about lifestyle — it's about risk management, long-term cost, and Market behaviour.

If you want clarity upfront, work with someone who's analysing Illawarra property every day.

A for-sale sign indicates investment potential.

Final Thoughts: Coastal Living Is Worth It — If You Buy Smart

Buying a coastal home is one of the most rewarding decisions you can make — the beaches, the community, the pace of life.

But the smartest buyers weigh:

• environmental risk

• lifestyle fit

• long-term affordability

• Market behaviour

• local council overlays

• insurance

• suburb demand

If you get those right, you not only protect your investment, but you also elevate your lifestyle.

Thinking about buying by the coast in the Illawarra?

 I help buyers understand risk, value, and opportunity — before they make a commitment.

 Book a strategy call with The Shoreline Agency and get a clear, local-specific plan for your next coastal move.

What Services Can We Help with?

A coastal community bustling with people enjoying various beach activities.

By carefully considering these factors, you're more likely to make a decision that not only meets your personal and financial goals but also enhances your overall quality of life. From understanding environmental risks to thinking about your community connection, the choices you make will set the tone for your new life by the coast. Happy house hunting!