Pros And Cons Of Buying A Waterfront Home Bankrate Caret RightMain Menu Mortgage Mortgages Financing a home purchase Refinancing your existing loan Finding the right lender Additional Resources Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Bank Banking Compare Accounts Use calculators Get advice Bank reviews Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Credit Card Credit cards Compare by category Compare by credit needed Compare by issuer Get advice Looking for the perfect credit card? Narrow your search with CardMatch Caret RightMain Menu Loan Loans Personal Loans Student Loans Auto Loans Loan calculators Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Invest Investing Best of Brokerages and robo-advisors Learn the basics Additional resources Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Home Equity Home equity Get the best rates Lender reviews Use calculators Knowledge base Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Loan Home Improvement Real estate Selling a home Buying a home Finding the right agent Additional resources Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Insurance Insurance Car insurance Homeowners insurance Other insurance Company reviews Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Retirement Retirement Retirement plans & accounts Learn the basics Retirement calculators Additional resources Elevate your Bankrate experience Get insider access to our best financial tools and content Advertiser Disclosure
Advertiser Disclosure
We are an independent, advertising-supported comparison service. Our goal is to help you make smarter financial decisions by providing you with interactive tools and financial calculators, publishing original and objective content, by enabling you to conduct research and compare information for free - so that you can make financial decisions with confidence.
Bankrate has partnerships with issuers including, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover. How We Make Money
The offers that appear on this site are from companies that compensate us. This compensation may impact how and where products appear on this site, including, for example, the order in which they may appear within the listing categories. But this compensation does not influence the information we publish, or the reviews that you see on this site. We do not include the universe of companies or financial offers that may be available to you. SHARE: On This Page
Barry Winiker/Getty Images July 05, 2022 Checkmark Bankrate logo How is this page expert verified? At Bankrate, we take the accuracy of our content seriously. "Expert verified" means that our Financial Review Board thoroughly evaluated the article for accuracy and clarity. The Review Board comprises a panel of financial experts whose objective is to ensure that our content is always objective and balanced. Their reviews hold us accountable for publishing high-quality and trustworthy content. Holly Johnson writes expert content on personal finance, credit cards, loyalty and insurance topics. In addition to writing for Bankrate and CreditCards.com, Johnson does ongoing work for clients that include CNN, Forbes Advisor, LendingTree, Time Magazine and more. Michele Petry is a senior editor for Bankrate, leading the site’s real estate content. Jeffrey L. Beal, president of Real Estate Solutions, has 40 years' experience in multiple phases of the real estate industry. Bankrate logo The Bankrate promise
At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict editorial integrity, this post may contain references to products from our partners. Here's an explanation for how we make money. Bankrate logo The Bankrate promise
Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. We’ve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next. Bankrate follows a strict , so you can trust that we’re putting your interests first. All of our content is authored by and edited by , who ensure everything we publish is objective, accurate and trustworthy. Buying or selling a home is one of the biggest financial decisions an individual will ever make. Our real estate reporters and editors focus on educating consumers about this life-changing transaction and how to navigate the complex and ever-changing housing market. From finding an agent to closing and beyond, our goal is to help you feel confident that you're making the best, and smartest, real estate deal possible. Bankrate logo Editorial integrity
Bankrate follows a strict , so you can trust that we’re putting your interests first. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. Key Principles
We value your trust. Our mission is to provide readers with accurate and unbiased information, and we have editorial standards in place to ensure that happens. Our editors and reporters thoroughly fact-check editorial content to ensure the information you’re reading is accurate. We maintain a firewall between our advertisers and our editorial team. Our editorial team does not receive direct compensation from our advertisers. Editorial Independence
Bankrate’s editorial team writes on behalf of YOU – the reader. Our goal is to give you the best advice to help you make smart personal finance decisions. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. So, whether you’re reading an article or a review, you can trust that you’re getting credible and dependable information. Bankrate logo How we make money
You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Bankrate follows a strict , so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. Buying a property with stunning views of the ocean or a beautiful lake is a dream for many. But a slice of paradise comes with costs that can be difficult to anticipate or plan for. Here are some of the upsides and downsides of purchasing a home that’s set right on the water. Buying a waterfront home
There are a few factors to weigh when considering a waterfront home that aren’t an issue when you buy a landlocked home. Location is important regardless of where you buy, of course, but it becomes more specific when searching for waterfront property. If you’re buying a home on a barrier island, for example, you’ll need to consider your evacuation plan and how you’ll maintain a generator and sufficient fuel for emergencies. Likewise, “some boaters are interested in deep-water fishing while others are interested in off-shore fishing near their home or going to waterside restaurants,” says Penny Lehmann, a real estate agent with Coldwell Banker in southwest Florida. “Therefore, the distance to the channel and length of a cruise to the destination is something important to consider.” You’ll also need to remember that the purchase price of the waterfront property is only the beginning. There are many other costs that come into play. For instance, you’ll need to research homeowners insurance costs. And if the , that will add to your expenses. Special maintenance that’s necessary for waterfront homes could also be costly. Finally, don’t underestimate how much you could wind up spending on outdoor furniture and other extras to enhance your enjoyment of your waterfront home. Plan on spending a tidy sum for furniture and accessories that let you soak up the fresh air and views, plus water toys such as kayaks, surfboards or even jet skis. Waterfront home pros
Waterfront properties are highly desirable for a multitude of reasons. Who could argue that living on the water isn’t a relaxing, uplifting experience? “Anyone who has sat on a beach or stayed in a waterfront house can attest to the near medicinal effects of the sound of lapping waves and seagulls,” says Robin Kencel, a real estate agent with Compass in Greenwich, Connecticut. Other positives about buying a waterfront home include: Strong potential for appreciation
“Waterfront properties are typically those that see the highest ,” says Kencel, who notes that the same holds true in her specific market. “In 2020, five waterfront properties sold for over $17 million. Waterfront continues to be in the highest demand.” Investment potential
In the and self-rental environment, waterfront homes have higher rental potential than homes without a water view, notes Cornelius Charles of Dream Home Property Solutions in Ventura, California. Rents can also be significantly higher, making it easier for investors to cover their ownership costs and even turn a profit. Permanent views
When you buy a home in an area still under development, you can’t be sure what your view will look like in five, 10 or 20 years. Waterfront homes come at a premium because their views are about as permanent as it can get. Waterfront home cons
A lot of the extra cost of a waterfront home is in the dirt itself — the lot you buy, says Lehmann. The better the location, the more you’ll pay. However, land is just one thing to think about. After you’ve paid for a waterfront property, there are more potential pitfalls, some of which you might not be aware of until it’s too late. Added regulations
Many new waterfront homeowners don’t realize that they’re going to be subject to specific rules. “Depending on your area, there may be a coastal commission or other organization that may restrict what you can and cannot do to the house, in terms of increasing the size of the home or renovating it,” says Charles. Less privacy
Waterfront homes are sometimes in areas that attract a lot of visitors. “This could increase traffic or lead to strangers being around your property a lot more than in a regular neighborhood,” says Charles. Often, the will only extend to the mean high water mark. That means that during low tide, some of your beach could actually be considered public property, open to boaters or walkers, for instance. Climate change concerns
There is growing concern about the potential impact of rising water levels on waterfront communities. Bodies of water also naturally shift due to tidal action, rain level, snowfall and other factors, which can change the landscape of your property and increase flood risk. Insurance issues
Every homeowner has to think about insurance coverage, but waterfront houses have additional concerns to consider. for waterfront properties can be more expensive, depending on the type of water you live on. For example, a lakefront home in Minnesota won’t have the same insurance premiums as an oceanfront home in Florida, where hurricanes are not uncommon and the risk of wind damage is higher. Unlike many other homeowners, waterfront homeowners in some areas must carry as well. This can be , and sometimes isn’t available in the area at all, explains Fiona Dogan, a Realtor with Julia B. Fee Sotheby’s International Realty in Rye, New York. “If you’re financing the purchase, it may kill the deal,” Dogan says. If your and you’re unable to obtain coverage from an insurer, your mortgage application will be rejected. When shopping for flood insurance, be sure to understand what each policy actually covers — it generally only protects the basement and/or ground level of a structure, and not personal property. Expensive repairs
Some waterfront homes might need a special exterior finish to protect against salt and sand damage, as well as storm-proofing precautions like impact windows, which can be pricey. Should your area experience a bad storm, there might also be the need for extensive — and expensive — repairs. Bottom line
While water views and access may be well worth it, the costs can add up quickly. Budget wisely and make sure that you can afford the expenses before taking the plunge and buying a waterfront home. SHARE: Holly Johnson writes expert content on personal finance, credit cards, loyalty and insurance topics. In addition to writing for Bankrate and CreditCards.com, Johnson does ongoing work for clients that include CNN, Forbes Advisor, LendingTree, Time Magazine and more. Michele Petry is a senior editor for Bankrate, leading the site’s real estate content. Jeffrey L. Beal, president of Real Estate Solutions, has 40 years' experience in multiple phases of the real estate industry. Related Articles