Things to consider when buying any waterfront vacation home.
First off, congratulations at looking to the Keys for a possible vacation home. The good news about the Keys from an investment angle are:
- There is only so much waterfront or Coastal property available.
- The Keys have strict environmental laws that affect building permits. This means there are only so many homes and always will be a limited number of homes here. One big reason for this is there is just ONE Highway in and out of the Keys. (US1) If there is an emergency, people need to have the ability to leave quickly and so for this reason alone, the Keys will never be California. The other main environmental consideration is the water quality. The Keys main attraction are water sports and Monroe County is going to make sure that our waters are clean and usable.
To consider when purchasing any waterfront vacation home and how the Keys measure up:
Is there a view?
Views really do matter. An unobstructed Ocean view adds as much as 60% to the value of a home per the Journal of Real Estate Finance and Economics. Proximity to Golf courses or a park can add as much as 20% to a homes value. This is per an article by a much published author named Soren Anderson, a writer from Manchester College.
Consider the recreational activities…
The What and the When.
For example in a Ski resort area, your options are limited due to weather considerations and the total amount of activities available is definitely less.
*In the Keys, about the only thing you cannot do year round are mountain climbing and white water rafting.
Boating access and controlling depth
Is there direct boating access on the property? If so, how large a boat can you have behind the home? This is determined by what we in the Keys call controlling draft or depth. For example: If a boat is under 30ft in most cases 3 ft draft is OK. Draft means...what is the lowest water depth you have to go through to get to open or deep water.If you have a sailboat or 50 ft boat you will need deeper draft such as 5ft.
Now ..obviously if you have a 50 ft sailboat behind your home, the canals or waterways have to provide you with turn-around room.
If the access is deep draft, then expect prices to go up. If there is no water access at the home or the draft is for kayaks only, in most cases expect a drop in price.
If there is no direct water access...how far is the nearest boat ramp or is there a boat slip available? If so, is it included and what is the draft out of the boat slip.
So the boating issue has a very direct effect on pricing here. Neighborhoods with bigger canals and deep draft boating are generally home to the Million dollar and plus homes.
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