Many consumers dream of owning a waterfront property. Waterfront property ownership can be luxurious and lucrative. At the same time, it can also be complicated and costly. That's why it's so important to evaluate all the important issues before investing in a waterfront property.
If you want to make a good investment when you buy a waterfront property, you need to consider the following six issues beforehand.
Property insurance costs
Among the most important issues to take into account is property insurance costs. Waterfront properties are especially susceptible to certain types of damage like storm and flood damage. That's why it can be especially expensive to insure them.
You need to understand what the insurance costs are going to be for a particular waterfront property before you make an offer on it. If you finance your waterfront property purchase, you're going to have to carry insurance on it. That's one of the reasons why insurance costs are a major consideration.
Waterfront properties tend to be high in value. That's why finding affordable financing is important. It's critical to understand your financing options before you even start exploring waterfront properties available in your area of interest. This way, you know what kind of budget you'll be working with.
It can sometimes be more challenging to hook up utilities in waterfront areas. This is especially true for waterfront properties that are located in rural settings.
Make sure you understand what types of utility hook-ups are available on properties you're looking at. If utility hook-ups aren't already available, find out how much you'll have to invest to bring in utility services.
Permits for waterfront structures such as docks
Outbuildings such as docks tend to be especially important assets on waterfront properties. However, some docks and outbuildings on older waterfront properties might not be properly permitted.
Do your due diligence and make sure you look into permit issues before purchasing a waterfront property. This will help you to avoid building code violations and understand any investments you'll need to make in any waterfront property you're interested in buying.
If a waterfront property is on the market, you need to know why the current owner wants to sell. Property inspections can make you aware of any issues the property has that might make it less desirable to a prospective owner.
Make sure that the home on your prospective waterfront property is constructed to withstand the elements. If weatherproofing renovations are necessary, make sure you have a good idea of how much they will cost before you invest in the property in question.
Too many prospective waterfront property buyers focus excessively on the home itself and not enough on the lot. It's important to see the value and potential of the lot.
There are a lot of things you might be able to do with a waterfront lot to increase the property value. These could include constructing an additional residence or additional structures like a dock or seawall.
For more information about waterfront homes for sale, reach out to a local real estate office.