Lakefront property has always been a popular type of real estate investment, especially for luxury vacation homes. With beautiful scenery and easy access to water sports, buying lakefront land or a lake house can be attractive. However, there are also issues to consider before investing in lake real estate. In this article, we will analyze the pros and cons of lake property investment.
Lakefront location is the biggest advantage of lake property investment
The most unique feature of lakefront real estate is the beautiful waterfront location. Waking up to magnificent lake views and having private access to swimming, boating, fishing is a dream lifestyle for many. Lakefront properties also often have higher property values and appreciation rates compared to inland homes. But lakeside living is rare – only limited areas around lakes can offer this, so supply is low while demand is steady. With declining inventory,lakefront homes have seen fast increasing prices.
Upkeep and maintenance costs are higher for lake homes
While the location has its appeal, lakefront properties also come with higher expenses. Owners may need to dredge around docks, combat shoreline erosion, maintain seawalls, and treat algae or vegetation. Seasonal weather damage and flooding risks also lead to higher insurance costs. New waterfront construction may be restricted so it’s harder to renovate or expand the property.
Lake water quality impacts desirability of the real estate
Not all lakes are created equal when it comes to water quality and usability. Lake access is most attractive if the water is swimmable and fishable. However runoff pollution, invasive species, toxic algae can degrade water quality. Government restrictions on boating or swimming may decrease enjoyment. Do research on the lake itself before buying shoreline property.
Location relative to amenities needs evaluation
While having a home right on the water is idyllic, also evaluate the convenience factor. Proximity to essential amenities like grocery stores, restaurants, hospitals should be assessed. Remoteness from civilization may mean extra driving time for necessities. Lake resort towns offer more amenities, but also command premium pricing.
Lakefront living has intangible lifestyle benefits
Beyond financial return, lake homes offer intangible rewards through lifestyle benefits. Living lakeside allows more opportunities to enjoy nature and water activities. Families benefit from time spent together boating, fishing, swimming in the summertime. Lake living provides an escape from urban life and a peaceful environment to relax. For many buyers, this outdoor lifestyle is a major motivation for investing in waterfront property.
In summary, lakefront real estate offers advantages like scenic beauty, privacy, rare location and potential for value appreciation. But there are also downsides like maintenance costs and risks that need evaluation. While not the best choice purely for investment, lake homes can be rewarding for buyers who actually plan to enjoy lake living.