What to Know About Having a Home By a Lake

Whether you've recently inherited a home on a lake or you're considering your next real estate purchase, fully understanding the advantages and disadvantages of such a move is important. Consider all of the elements and how they impact the specific lakefront property that you're considering.

Advantages

Permanent Vacation Home

One major perk of a lakefront property is that you don't have to rack your brain figuring out where to take the family on vacation every summer. Whether you want to bring the kids on a trip or have a weekend away with your friends, the lakefront house will always be an option. You could go on a solo journey for some peace and quiet as well.

Access to Nature

Living by a lake means that you have access to the beauty of nature throughout the four seasons. Spending more time in nature can help both your physical and mental health. You can enjoy these benefits whether you live by the lake year-round or you take breaks from your city job to come to your second home. If you have children, raising them in a beautiful natural setting can also help them to develop a greater appreciation for wildlife and the environment.

Rental Property

The lakefront house could also act as a rental property. You might vacation there yourself sometimes, but you can rent out the house the rest of the year. Having a rental property is a good way to generate some additional income. In fact, you might decide not to live in the home at all and to, instead, rent out the property all of the time. A large property could turn into an apartment or possibly even a hotel.

Built-in Recreation

A home by the lake means that you'll have plenty of recreational options. Water sports, such as fishing, boating, and swimming, are right at your fingertips. Instead of paying to install a pricey pool, you can go for a dip in the lake on hot days. The shore is also a calming place for journaling, reading, or simply relaxing.

An Investment

Buying a lakefront property is making an investment. Depending upon the condition of the house, you may need to put in some work. However, you are likely to be able to sell the house for a suitable price in the future. Many buyers on the real estate market are looking for lakefront properties as vacation homes, so you can attract those shoppers and make a lucrative sale.

Disadvantages

Safety Concerns

Living on a lake means you have to teach your children about the dangers of drowning. Even if you and your loved ones are strong swimmers, accidents can occur. Also, some lakes are home to certain species, such as alligators, that will attack humans and pets. Make sure you are aware of the particular dangers associated with the lake on which you're planning to purchase a property.

Flooding

If you live near any body of water, it's important to recognize that floods can happen. Before purchasing a lakefront home, you should familiarize yourself with the typical weather patterns in the area. Some areas are simply more prone to flooding than others. Keep in mind that floods can be destructive. Even more minor floods could lead to electrical issues and mold growth.

Higher Costs

Getting flood insurance is a smart idea for homeowners who live on a lake. In fact, this type of insurance might even be required. Flood insurance is typically an additional cost. Also, a home on the lake may be higher in price than other houses due to its appeal. You could end up spending more money than you originally budgeted for.

Fewer Jobs and Educational Opportunities

Many lakefront properties are located in rustic, rural settings. Commuting the distance to your current job might not be a feasible option, and you might not find too many possibilities for other work. Working at home could be an option. Keep in mind, though, that the service in rural areas is sometimes spotty or unreliable. Your children may also have a longer commute to their schools.

More Maintenance

Due to Mother Nature's elements, a lakefront property may require more maintenance. For example, you might have to deal with more pests, such as bugs, in the house. Also, if you aren't going to live in the house at some point of the year, you still have to protect the property. You might have to hire a property manager to take care of the house, or you could end up needing to winterize the property.

Owning a home on the lake is a dream that many people have. This type of property has some distinct advantages and disadvantages. Fully considering the situation before you make an offer on a lakefront house is important.

Written by Taylor McKnight, Author for Roche Realty Group