by Bella Scotton Photo Courtesy of Renatures.com
If you are looking at buying your property
from an investment point of view then you may want to take a look at waterfront
property. If your concept is to buy property just to suit your personal living purposes then you can still strongly consider water front property but not with as much focus on what your ROI will be if you decide to sell it.
Buying This Property for Retirement:
If your intent is to spend the rest of your years in a wonderful atmosphere then residing by a body of water certainly will be a great choice. You won't be as concerned about the resale value.
Buying This Property for Investment:
If resale value is your priority it may still mean that you want to live at your water front property but you want to know that you are going to get good resale value if and when you decide to sell it. If this is the case, then you want to put some expectations on this type of property.
- You want the weather to be good so you can enjoy the water features as much as possible
- You want to be able to purchase this property now at an affordable price
- You want the environment to possess all of the amenities and be a safe place to live and perhaps raise a family.
These are not only what your expectations should be, but they are also excellent resale features. This now takes you on a journey to find a beach front property that meets this criterion. At the same time keeping in mind what the resale value may be for the future. Also, you need to consider whether you want to buy property
that is actually right on the water front, or would you be satisfied living in a beach town?
How to Analyze:
When you are looking for a waterfront property
keeping in mind its future worth, you want to look at the trends that have taken place in the past.
You could currently purchase a lakefront lot in Hillsdale Michigan
for $35,000. The average home in Hillsdale county sells for around $116,800. Water front property typically has a higher value. If you compare this to what has happened in the last five years within this area in the general housing market you would note in 2013 the average housing price was $87,600. If Wisconsin appeals to you then a good example here is a one-acre piece of property with a cute little house on it that has a wonderful natural environment to it on the waterfront. It is currently selling for $139,900. Looking back to 2013 for the average home sale in Wisconsin it came in at $141K and as of January 2017, the average sale was $162K. So as you can see when you shop around carefully there are some excellent deals to be found. Actual statistics are always very slow to come out in any industry and the same can be said about Real estate. However, real estate
always seems to go through the same cycles where the markets are hot then cold. With investments, you have to watch your timing. This means that if you are going to buy your water-front property
with investment purposes in mind then you will only want to sell when the market is hot. In late 2014 on a nationwide basis water-front properties were considered
to be worth double the value of all the homes. Traditionally the most expensive areas for this type of property has been...
Considered to be the cheapest were...
For a single family water front home in 1997 the approx. value was just over $150K then as of 2015 it rose to approx. $370,900. Compare this to a single family home that was not water front and in 1997 it was $100K and then rose to $171,600 in 2015. As you can see the rate of increase in value was not nearly as strong in the non water-front properties. The one thing to keep in mind with your water-front property investment is that there is only so much of this type of property as there are only so many bodies of water. This is another factor that keeps the water-front property at a premium. Sources: Zillow.com zillow.com/research/whatiswaterfrontworth-7540/
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