Ways to Control Costs When Purchasing a Waterfront Home
Purchasing a home on the waterfront is often a sizeable expenditure in terms of its financial obligations. However, even when the investment is large, there should always be a welcomed opportunity to save money where possible. Fortunately, when purchasing a lakefront home, there are things buyers can do to control costs. Read on to learn about some of them.
Lot Ownership
A common misconception concerning waterfront properties is the idea that the landowners automatically own the area of water adjacent to their property. However, sometimes, the property owner only owns everything up to the water's edge, and the state or county government owns the lake.
In this sort of arrangement, property owners lease the portion of water adjacent to their home, which can come with a monthly or annual fee assessment that can last for decades. This fee can easily add hundreds of dollars to your monthly obligations. You might ask your agent to help you find a property that does not require a lease to minimize additional costs.
Investment Obligations
Lakefront homes often provide gorgeous views, privacy, and a long list of activity options. For this reason, some people purchase these properties to rent them out as long-term or vacation rentals. Work with an agent to learn more about where to buy if this is your plan.
Particularly when it comes to large bodies of water, it is not uncommon for the water to span past county or state lines. Since property tax, and income tax obligations for rental income, can vary between counties, it may be more cost-effective to purchase a lakefront property in one location over the other.
Boat Dock
One of the main lures of owning a waterfront home is the opportunity to also own a boat and to enjoy time outside on the water, such as on a boat dock. So, having a boat dock is often the plan. To manage your cost, you might want to look for homes that already have this addition. A well-constructed dock can easily cost tens of thousands of dollars. Having the dock already installed means less of an initial investment.
You should also have the dock inspected to determine its age. A dock that has been maintained can potentially last upwards of 20 years, so if the structure is on its last leg, you could face emergency repair costs.
Fortunately, a professional agent can help you manage these and other cost-determining factors. Speak with a professional who can help guide and protect you throughout the buying process. For more information, contact a real estate firm, such as The Stockton Team: Keller Williams Showcase, to learn more.