If you have decided to invest in a lake home, there are a few different things you need to check out with this type of property. With a lake house, you need to do your due diligence before you purchase this special type of home.
#1: Consider the Type of Lake
First, you need to consider what type of lake you are purchasing the property on. Are you looking at purchasing a house on a very small lake that you can just look at? Or are you purchasing a house with a dock, on a lake that you can take a powerboat out on?
Different sizes of lakes will create different types of experiences. A small lake will be a quieter experience, and a larger lake will have more traffic and noise. You need to consider what type of environment you want for your home.
#2: Check Out the Insurance Requirements
Purchasing property near the water usually means you have an increased risk of the property flooding. A waterfront property often means you are more than likely going to need to purchase flood insurance.
Flood insurance can be expensive. You need to make sure you know the cost of insurance before you purchase the home. You want to make sure the flood insurance fits into your yearly budget for the home.
#3: Consider All the Costs
With a lake home, you often have extra expenses beyond needing to purchase flood insurance. With a lakefront home, you may have to pay both boat docking and lift fees.
Many lakefront properties have their own septic tank and often have their own wells, which means you need to have money to pay for the upkeep of the septic tank and well. If your lakefront property is part of a homeowner's association, you will have those fees to pay as well.
Additionally, the taxes on the property may be higher than a similar home on a regular lot.
#4: Understand the Shoreline's History
Finally, you need to make sure you understand the shoreline's history. Has the shoreline moved at all in the last few years? How much has the shoreline moved in the past decade?
Be careful about purchasing a home on a lake where the shoreline has moved. You want to enjoy the lake, but you don't want the water lapping on your front door.
When it comes to purchasing a lake house, be sure to consider the type of lake the house is located on, and if the activity and sound level match your housing needs. Make sure you can afford all the costs that come with a lakefront property, such as docking fees and flood insurance. You need to look beyond the house and research the lake history, sound, and costs before going through with a lakefront home purchase.