Thinking about buying waterfront property? A second home….and really hoping you can enjoy the view of a pristine lake or the soothing sound of ocean waves? Read on to gain insights on how best to prepare for home ownership on water.
Important Considerations for Buying Waterfront Property
- Access to the water: What type of waterfront access will the property provide? Is there a private beach, dock, or boat slip? What does the access to the water look like…are there stairs? Is it rocky? Does the body of water accommodate the activities you want to engage in, such as fishing, swimming, or boating?
- View: Do you have an unobstructed view of the water? Do you have the degree of privacy from neighbors and people using the lake / ocean that you would prefer? Consider the orientation of the house to maximize natural light and to enjoy beautiful sunrises and/or sunsets.
- Water quality: Research the quality of the water, especially if you plan to use it for swimming, boating, or other activities. Is the water clean and safe? Check for issues related to pollution, algae blooms, or contaminants.
- Climate and weather: Research weather patterns, including seasonal variations, storm frequency, and potential risks such as hurricanes, fires, flooding, and erosion.
- Maintenance and insurance: Homes near the water often require additional maintenance due to exposure to moisture, salt, and other elements. Additionally, insurance costs for properties near water might be higher and you should factor that into your budget.
- Regulations and permits: Research local regulations and permits, as there may be restrictions on building, renovating, or modifying the property. Also, there may be limits on water usage or potential changes in regulations that could affect the property at a later point in time.
- Privacy and noise: Waterfront properties can attract tourists, boaters, and other activities that may impact your peace and quiet. There may also be ordinances around when you can and cannot be on the water with a motorized vehicle.
- Resale value: Waterfront homes often have a higher market value, but it is important to assess the demand in the area, market trends, and the overall desirability of the area.
- Property taxes: One upside to purchasing a home on leased land is that you will not be responsible for paying property taxes. On the other hand, if you own your home and the land it sits on, you will be responsible for paying property taxes, which may be more expensive than inland properties.
Helpful Resources
Real estate agents: Work with agents who specialize in waterfront properties. They can provide insights into the local market and help you find suitable properties that meet your criteria.
Local government agencies: Contact local agencies responsible for water resources, such as the lake or coastal management authority. They can supply information on regulations, permits, flood zones, erosion risks, and other important factors specific to the area.
Environmental agencies: Reach out to local or regional environmental agencies to inquire about water quality, pollution concerns, and any ongoing or historical issues related to the water. They may provide reports / data on water quality testing, contaminants, or algae blooms.
Local residents and community forums: Engage with local residents and join community forums or other online groups dedicated to waterfront living. They can provide firsthand insights, pros and cons, related to living on the water, potential challenges, and recommendations for specific areas or neighborhoods.
*Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Stephens Consulting, LLC, doing business as Stephens Wealth Management Group (SWMG), or any non-investment related content, made reference to directly or indirectly in this newsletter will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this newsletter serves as the receipt of, or as a substitute for, personalized investment advice from Stephens Consulting. Please remember that if you are a SWMG client, it remains your responsibility to advise us, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to your individual situation, you are encouraged to consult with the professional advisor of your choosing.
SWMG is neither a law firm nor a certified public accounting firm and no portion of the newsletter content should be construed as legal or accounting advice. A copy of SWMG’s current written disclosure Brochure discussing our advisory services and fees is available for review upon request. Links are being provided for information purposes only. SWMG is not affiliated with and does not endorse, authorize, or sponsor any of the listed websites or their respective sponsors. SWMG is not responsible for the content of any website or the collection or use of information regarding any website’s users and/or members. Important Disclosure.
Please Note: Stephens Wealth Management Group does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to SWMG’s website or newsletter or incorporated herein and takes no responsibility for any such content. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly.