Buying a Lake House – Why and How Much?
Lake houses have always been popular. Recent years have seen an explosion in demand. At times, the inventory of available options has been low. If you are considering a lake home, think about why you want one. This can help you determine how much money you are prepared to spend for your lake house.
WHY? – Common reasons people want a lake home.
RECREATION! – A lake home is outstanding for summer fun; swimming, boating, fishing, wake surfing, wake boarding, tubing, etc. Just relaxing on your dock watching the lake activity will be treasured time.
INVESTMENT – “Buy land, they’re not making it anymore”, Mark Twain – This is particularly true for lake homes. Real estate is generally a good long-term investment. Because of their scarcity, lake homes can hold their value and appreciate faster than more common real estate. Using a lake home as a short-term rental property is becoming more and more common. During peak season, lake homes can earn top dollars from vacation seekers.
SOCIAL – A lake home can be a focal point for gatherings of friends and family. Coordinating vacation time at your lake house is a good way to stay close to the people important to you.
STATUS – Having a lake home can be viewed as a measure of success. Driving a Jaguar or wearing a Rolex makes a statement. Investing in a resort type property can convey a message too. That may sound like vanity, but it does not need to be shamed. Business owners, professionals, etc. that have worked hard to be able to afford a finer lifestyle may appreciate this. They know that their choices, sacrifices, and hard work have afforded the opportunities that go with it. You can be proud to own a lake home that you treasure.
Your reasons for WHY you want a lake home are yours. So, how much to spend?
HOW MUCH?
Prices will vary from lake to lake. There are some elements to consider in determining how much to spend on a lake house.
For a typical urban or suburban property, determining a value can be reasonably simple. Lot sizes and houses in a neighborhood are usually very similar. If the house next door just sold and your house is identical, your house may be similarly valued. If you have 100 more square feet, your house may be worth the value of that extra square footage.
Determining a valuation for a lake house is not as simple. Two identical structures side by side can have wildly different valuations. That is based upon the niceness of the lot. Often times a valuation of each linear foot of lake frontage is used, but even that is not perfect. For example, a house that has an elevation of 10-15 feet above water level with a gradual pitch to the water will be dramatically more valuable than a house that sits atop a cliff with a staircase of two hundred stairs to get to the water. There is no algorithm to calculate niceness of a lot. Some factors that impact appeal, can be amount of water frontage, how usable the lake frontage is (is there a boat station or dock, is it good for swimming, etc). Some great properties will have a road that passes through the lot. Needing to walk across the street to get to your waterline is a different experience than opening up your door to sit on your deck that overlooks the lake. Seasonality, access to utilities, closeness to restaurants and shopping, and privacy are among many things that can impact how you value a lake property.
For determining how much to spend, you will need to look at which lakes have opportunities in your price range. Then, go back to your “WHY” reasons. How will you use the lake? If you plan to get up early every day to swim two miles or fish, proximity to the water line will be important. If on the other hand, you are content with a picturesque view and will only go to the water line once or twice a year, maybe that house on the cliff is a good option for you. Atop a cliff may be the best view of the lake. There is not a right or wrong answer to how you will derive pleasure from the lake. You will be able to look at comparable property sales to make sure you don’t go off the rails with price. In the end, the answer to “HOW MUCH?” will be made by you. How badly do you want it?
To shop for lake houses in the beautiful Finger Lakes Region of New York State, be sure to check out available listings. Visit The Key to the Finger Lakes!