Author: Andrew Stratton
Thinking about investing in some real estate on the water? Now is a great time to buy a home or vacation house at the lake or on the ocean. However, you have to do some homework before laying down the cash to determine if buying waterfront real estate is right for you. Here are some things to keep in mind while you are looking for property and doing your research:
* Specialized agent
It is usually a good idea to hire a real estate agent to help you with a purchase, but it is especially true for waterfront property. But, you don't want to hire just any agent, but one that specializes in the waterfront area. This agent is familiar with the land and the water. He can tell you what the fishing is like from your dock, when the seaweed gets bad and if there are any unseen obstructions to keep you from using a boat.
* Insurance
Every year insurance costs are making it more and more expensive to own a piece of real estate by the water. The record damage sustained in recent years from hurricanes, floods and wind damage have caused rates to skyrocket in popular water-front areas. So, you have to decide if the cost is worth it as well as the risk of future weather situations.
* Land value
Sometimes the land is more valuable than the house sitting on it. If you have plans to tear down and build, then definitely give the land more attention. However, you do want to pay attention to how the current home is sitting. Is it leaning a little, sinking anything that may indicate unstable or wet soil underneath?
* Prior property damage
On the water, stuff happens. Wind, rain and flood damage just go with the territory. When you have the house inspected, choose an inspector familiar with looking for common signs of past problems. If it was damaged once, it may not be able to withstand another round or gale-force winds or flood and then you'll be stuck with it.
* Rights as a home owner
Just because you live on the waterfront doesn't mean that you own it. You just have you little piece of land next to it. That means that you have to be willing to share the benefits and also be prepared for it to get busy during peak season. You also have to know what your responsibilities are as a homeowner. What upkeep are you expected to take care of and what are the rules of using the waterfront?
* Plan your financing as soon as possible
Beach and lake front real estate is expensive and considered a luxury. Getting pre-approval on a hefty loan gives you some bargaining power as well as buying power.
You and your family can make some great memories, whether you're living on the waterfront or just settling in for summer vacation. It can be a great investment because these properties are so desirable. But, you have to weigh the costs against the return you'll get to see if it is worth it to live right on the water.
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