Four things to consider before buying a waterfront home
Waterfront properties are highly prized and sought after in any real estate market. The monetary rewards are great, and the effects on your overall well-being are priceless. You can see why its allure is hard to resist.
Before you go on to buy waterfront real estate of your own, here are four things to consider. These will help you choose the right property to enjoy for the long run.
- The overall cost
The price tag of a waterfront home isn’t the only thing you should prepare for. Insurance is a must for properties like these, and since they’re often exposed to elements, maintenance bills can rack up over time.
The activities you intend to do in the waterfront home also come with a cost. You may have to add boat ramps or certain additions to accommodate your hobbies and lifestyle preferences.
Most of all, cost doesn’t just mean money. You’ll have to invest significant time and effort into maintaining a waterfront property (and managing it if you plan to turn it into a vacation rental).
- Restrictions and by-laws
Unfortunately, you can’t do everything you want in a waterfront home. So, before you buy, make sure you actually get what you want from that property.
Ask the seller’s agent about the specifics on what you can and cannot do in and around the property. For instance, can you swim on the water or go fishing? For lakefront homes, ask if motorized watercrafts are allowed on the lake.
If you found a waterfront property in a lovely, secluded area, inquire about the utilities available in the neighborhood. You might end up with no cell service or expensive utility bills.
- The property’s purpose
Think of how you want the waterfront home to be classified. If you’re going to live in it full-time, you might as well classify it as your primary residence. If you only plan to use it for vacations and holidays all while keeping primary home, it should be classified as a second home.
If your sole intention to purchase waterfront property is to manage it as a full-time vacation rental, it is considered an investment property.
The reason behind identifying the property’s purpose is to help you prepare for mortgage requirements. For instance, you’ll need a higher credit score if you’re buying a second home.
- The market
Say, you intend to use the property as a vacation rental. Do you have a market, and what is the market like? How often does the area receive tourists? When are the peak and low seasons? Understand the local rental market to ensure a profitable investment.
If the waterfront property you intend to purchase is located in a neighborhood with a homeowner’s association, double-check the rules to make sure you won’t be breaking any.
If owning a lakefront home is your dream, visit Smith Mountain Lake and explore waterfront homes for sale with me. Get in touch with me today at 540.493.1690 or Jane(at)JaneAtTheLake(dotted)com to check out your real estate options in the area.