Waterfront, lakefront, riverfront – properties described with any of these words make buyers imagine tranquil views and endless recreation. For many buyers, living in a waterfront home means an everyday vacation state of mind!
But as appealing as these dreams may be, waterfront homes are not for everyone. Before investing the extra money, it’s important to understand the benefits of waterfront homes.
What to know before you buy
When searching for waterfront listings, it is important to note the difference between “waterfront” and “water view”. If you’re looking for navigable water, you’ll want to restrict your search to listings that specify “waterfront”.
But even with this designation, sometimes waterfront homes do not have access to water; sometimes the term “waterfront” is misused to describe listings located on a retention pond or other unusable body of water.
It is important to be clear with your real estate agent about your expectations. Let them know how you plan to use the property; if you have a boat, let them know the depth, dock and elevator you need. If the real estate agent has questions about the listing, let him or her clarify the waterfront status before the showing.
There are often restrictions on the use of the water. Before making an offer, you’ll want your agent to check the legal documents and title to the home to see what you can and cannot do on the water.
Here are some questions to ask yourself:
- Are you allowed to build on the water? How far out are you allowed to build?
- Is fishing allowed? Are there any restrictions?
- Can you use a boat? Are there any rules about boat size or speed?
- Are water vehicles allowed? Motorized, manual, or both?
Benefits of waterfront property
Personal Benefits
Buyers are typically drawn to waterfront properties for the views and recreational opportunities they offer. Boating, fishing, walking the beach, swimming, kayaking – the list of waterfront activities offers endless potential for fun and relaxation. Having direct access to the water, just steps away, brings an exponential increase in quality of life for some homeowners.
Living near water also has proven mental health benefits. A recent study indicates that people who live near “blue spaces” exhibit a consistently higher sense of well-being and happiness than those who live in urban environments. Higher levels of vitamin D, better social interactions and a greater sense of mindfulness are presented as possible links between waterfront locations and better mental health.
Financial Benefits
Because the supply of waterfront properties is limited and buyer demand is high, the rate of appreciation tends to be more consistent over time. This means that the value of a waterfront property generally increases and is less subject to market downturns than equivalent properties nearby. Generally speaking, scarcity equals security when it comes to real estate investments.
In addition, some buyers are attracted to waterfront properties for their rental income potential. Vacation rentals located on a body of water have a higher rental price and may have more repeat tenants.
Long-term benefits
One of the best aspects of owning property on the water is the permanence of the view. As zoning ordinances change and land development increases, there is really no guarantee that the “nature views” listed in other homes will last over time. But with property directly on the water, those coveted waterfront views aren’t going away anytime soon.
Some buyers invest in waterfront property with the intention of making it a legacy property, meaning a home that can be passed on to future generations. A family waterfront villa or family beach house can be a great place for extended family to gather during the vacations.
A waterfront property can be a great buy, as long as buyers go in with their eyes wide open. Be careful and intentional in your search, so that your waterfront home is everything you’ve dreamed of!
