Dear Whit,
Some thoughts.
Beaches are always positive with people naturally liking the sea, surf and leisure lifestyle.
However holidays towns I believe have a higher volatility in earnings with the greatest amount of renters coming in during the holiday season. Higher short term rents but a greater vacancy rate during the off-peak season.
Retirees are potentially good stable renters however many will have the funds to purchase their needed accommodation outright.
A good holiday environment with limited land will contribute to potentially good capital growth but will not necessarily help yield.
Something to look for:
Are there any other industries nearby which could provide employment for your future tenants in the area?
Are there development companies who will have projects in the area to market the "beachlands" name in the future and so contribute to it's capital growth? (All about picking the time BEFORE they market to get the best results.)
If these check out and you feel comfortable with potentially higher volatility I say the area certainly is worth exploring more.
Important next step is to research the prices in the area and find the right deal.
Let us know how you go.
Cheers,
Sunstone.