The majority of us dream of a waterfront condo or home. Yes, waterfront real estate comes at a higher price, but the return is often worth the cost. Whether you’re thinking of it as an investment or for personal use, you should always consider the advantages and disadvantages.
The Advantages
There are many advantages to purchasing a waterfront property, and these advantages often cause investors to overlook the potential risks of this type of property.
1. High Market Value
One of the main benefits of a waterfront property is that it appreciates the fastest; mostly because there isn’t that much waterfront available. While the market is not predictable you can have peace of mind in knowing that even if your property does lose some of its value, it will likely be the first type of property to start appreciating again.
2. Great Rental Area
Waterfront homes and condos have high market values, but they’re also easy to rent out. Renting out your beach home can provide you with cash flow. Tourists are happy to pay a higher price to stay in a beachfront home or condo.
3. Low-Cost Getaways
Purchasing a waterfront home will provide you with your own getaway. Trips are less expensive, as you already have a place to stay.
The Disadvantages
With advantages come also the disadvantages that you have to consider. Do not disregard these while making your decision as they can have a higher impact then you originally thought.
1. Weather Damage
One of the biggest concerns with purchasing oceanfront property is weather damage. Mold and mildew are major concerns among beachfront property owners. Humidity and moisture can cause mold and mildew to form in just a few days. Leaking pipes and roof leaks can lead to significant mold damage. The very nature of people coming and going from the beach and into the home can lead to mold or mildew growth.
In certain areas raising water is a yearly issue and flooding becomes a real concern. It can cost several thousands in damages and if it’s known issue insurance will most likely not cover it. A solution could be purchasing a home on a higher level. With that said, if you invest in a condo, you may not have to worry about roofing, landscaping and siding.
Flooring damage is another concern, as sand can get worked into the carpet or scratch hardwood flooring. Tile and area rugs are the ideal solution, as tile can stand up to the damage of sand.
2. Property Damage
If you’re thinking of renting out the property for extra cash flow, consider the damages that might come with short term rentals. You will have to make sure to visit your property regularly to know who the culprits are, or hire a local property manager to oversee your property.
3. Safety
Aside from the obvious threats coming from Mother Nature, living near water also comes with a few human threats. Homes that face or back up to water are more susceptible to home invasions because there are less prying eyes to catch burglars in the act. This is a risk most waterfront home owners take when they choose tranquility and seclusion over the more popular safety-in-numbers approach to living.
When considering a waterfront property, it’s important to weigh these advantages and disadvantages carefully to determine whether it will suit you and your needs.