This blog explores financial aspects as an investor of which properties should be most attractive for you.
There are plenty of pros and cons of investing in a waterfront property whether you plan on renting it out or residing in it yourself. We have discussed these positives and negatives in previous blogs but today’s focus is centered around investing. Investing in a waterfront property for rental purposes is a bit different than purchasing one for you and your family. The potential and payoff can be huge when investing in a waterfront property. For example, the annual appreciation rate of lakefront properties is always rising. They are also more likely to gain more value over time than any other property in the market. This is possible because people are always looking for summer homes on the water to fill in, especially if there are attractions around it.
This further stresses the importance of putting your research into the investment so that you may maximize its potential. By doing this you will also have a good idea of what is in store for you in terms of tourists visiting the area. Be sure to follow the tips listed in our previous blogs and paying attention to important details like water depth and access. Do not forget to note not only the structure but the property as a whole in terms of location and what it will cost in insurance policies. While overall it can be almost guaranteed that this will be a successful investment, it is also what you make of it as the investor and how you will capitalize opportunities that come your way.
Beware the disadvantages that could block your path to success in investing. Septic problems often occur with old style homes on the water and should be upgraded as soon as the purchase is complete. Flood and water damage can also occur and cost a steep amount in insurance protection or repairs. If in a tourist area with plenty of attractions, it could hurt to have a large increase in noise and the amount of people that populate the area could detract experience from those residing in your rental. Erosion along with water damage can turn into a real issue if not taken care of properly. Upkeep is essential and should be taken seriously by both the owners and the tenants.
Please evaluate all aspects of this blog and past blogs regarding waterfront properties and decide for yourself whether this is a worthy investment for you up here in the North Country. Once you decide it is for you, contact a Bridgeview agent to guide you!