What Goes Into Owning a Waterfront Home?

A waterfront home offers surroundings unlike any other. Their prime locale and stunning views virtually guarantee a lifetime of relaxation, waterfront get-togethers, and summer nights under the stars. Waterfront homes have great potential as investment properties as well. But for all the perks waterfront homeownership offers, it comes with its own set of responsibilities, too.

Should I buy a waterfront home?

Beyond the lifestyle benefits, owning a waterfront home also has a significant financial upside. Because waterfront properties are more scarce than landlocked homes and their location is highly desirable, the buyer demand is generally high. As a homeowner of these special properties, you can rest assured that a well-maintained waterfront home will generate significant buyer interest when you’re ready to sell. A property with any combination of water views, boat slips, docks, and water access is a recipe for appreciation over time.

A waterfront property is a popular choice for homeowners who are in the market for a second home, or even as a primary residence for those looking to eventually move into their vacation home when the time is right. They’re also primed for converting into a short-term rental. Due to their location, they have a competitive advantage over many other short-term rentals. Depending on the local laws and any relevant Homeowners Association rules, waterfront homes can be rented out year-round or seasonally. For example, if you decide to rent out your home during the summer, you’re able to capitalize on seasonal demand.

Owning a waterfront property also comes with extra risks you’ll need to keep in mind. Weather conditions can be extra harsh on these homes, given the fact that they’re situated face to face with nature in a way most homes aren’t. Make sure you have proper coverage through your homeowners insurance policy and inquire about the need to purchase additional wind, flood, or hazard coverage. Local climate dictates what a comprehensive coverage plan will look like for your home, but what’s important is that you’re fully covered.

Something else to keep in mind is that beyond the typical tasks associated with owning a home, waterfront structures like retaining walls, boat lifts, and docks require a certain amount of ongoing maintenance. As the seasons change, so will your responsibilities as a homeowner. Properly winterizing a waterfront property requires a few additional steps beyond the typical routine, depending on how low temperatures dip during winter in your area.