Waterfront property… That term alone evokes a little bit of a luxury emotion in us. Of course, you can have a broken-down dump next to a beautiful lake but that's usually not the picture most of us envision when we think of waterfront property. A little bit of paradise comes to mind for me when I think of a waterfront home. Living in the Seattle area we have Lake Washington and Lake Union and of course, the Puget Sound so waterfront homes in the Pacific Northwest are everywhere, but that doesn't mean that they are cheap. Waterfront property can mean any home is nestled next to a beach, lake, river, sound, or even a pond and nothing beats watching the sunrise or side over your own little piece of waterfront paradise. So, if a waterfront home is on your horizon, here are five things you should know.
#1. The lifestyle.
Having a home that faces the water means you could attract future investors looking for an interest in water-based activities. When it comes time to sell, you will likely attract those who enjoy swimming, boating, or other water sports and are willing to pay top dollar for this type of property that provides them with the lifestyle they want. This is great for resell value but it also means that buying a waterfront home will be a little bit more expensive upfront.
#2. Supply and demand.
Because we have an abundance of water in the Pacific Northwest buying a waterfront property is not that rare, however, there is quite a demand and acquiring a waterfront property can provide you nearly a 100% guarantee of monetary gain. Not every home in the Seattle area is waterfront so you do have an edge on the competition. There's only so much land near the water so this is actually a coveted investment and it can be your own little private retreat while still holding its value.
A lot of people say that owning a waterfront property feels like being on vacation all the time. For those that enjoy the benefits of a waterfront home look for areas surrounded by lakes or near the ocean. These will attract business owners and have you close to major amenities while still maintaining privacy.
#4. Possible rentals.
If you're looking at a waterfront home as a rental investment, you may be able to gain more profit than from a non-waterfront home. Homeowners that own these types of high demand properties can have a greater chance of expanding their profit margins and providing themselves with a good source of income. Be sure to check with your insurance on renting out waterfront property as there may be additional policies that need to be put in place.
#5. Check with your insurance.
Depending on where you choose your waterfront home there may be additional insurance needed. Talk to your insurance company about the location, any weather risks, any erosion issues that you might be concerned about, and ask if you can add on additional insurance. Often times, earthquake insurance or flood insurance can really protect you at just a few extra dollars per month.