Nowadays, many people are purchasing waterfront properties as private vacation spots that they can visit any time of year. If you are planning to buy a waterfront home, here are a few considerations to keep in mind as you make your selection.
Your Monthly Budget
If you don't plan to pay the full price of your property in cash, you will likely have a monthly mortgage. Additionally, you may other costs associated with the property, such as flood insurance. Many homeowners have home insurance coverage but may not have flood insurance. Due to the proximity of the body of water to the structure on your property, the risk of flooding and water damage may be greater. The cost of this added flood protection should be included in your monthly budget. Additionally, a waterfront home may have docking fees, as well as boat and lift charges. Thus, if you enjoy boating and plan to use a fee-based dock, be sure to budget for these costs.
The Flooding Potential
Waterfront properties that are located at the shoreline offer beautiful scenic views and easy access to the water. However, the properties may incur more water-based damages, especially if the water depth rises easily after heavy rain. To get an idea of how the precipitation in the area may affect the property, inspect the site during dry periods, when the water may have receded from the shoreline to assess the potential distance your dwelling may be from the water's edge during droughts. Additionally, inspect the property during periods of heavy rain when the body of water may encroach upon the home.
Using the Property for Rental Income
Some people only want to use their waterfront home periodically. A waterfront home offers the convenience of an anytime vacation. Nevertheless, some people only want to use their waterfront home periodically. During times when you don't want to live in your home, consider renting it for profit. The property will likely rent for a similar price as other nearby homes with the same number of rooms and amenities. Thus, before making a purchase, you should check the comparable rental prices in the area. Homes with more bedrooms or greater amenities tend to rent for higher prices. Consequently, even if you pay more for a roomy, high-end property on the front end, you may recoup your investment quickly.
If you are interested in waterfront homes for sale, schedule a consultation with a real estate professional in your local area.Share