Buying a lakefront property can be challenging because there are so many things you need to consider and it’s very different from buying a non-lakefront home. But what if you’re trying to buy a lakefront property as your vacation home? Now that’s an entirely different ballgame altogether, because you have just added a whole other spectrum of difficulties and obstacles you probably didn’t even know existed. Therefore, we are going to go over some of the questions you should ask when buying a lakefront property, as well as the questions you need to ask when buying a lakefront property as your vacation home. This will give you the information you need to make an educated decision about whether or not this scenario is right for you and your family. First we’ll start by discussing the considerations for buying a lakefront vacation home, then will discuss the questions you need to ask before you actually buy a lakefront property.
The questions you need to ask before buying a lakefront vacation home will be determined mainly by your particular lifestyle and your family’s current situation.
1. Where Should I Buy a Lakefront Vacation Home?
This question is important for many reasons. For example, are you going to be using your vacation home year round? If so, then you will probably want to buy a property in a location that is warm throughout the year. Are you going to be weekend warriors? If so, you will need a location you can easily drive to within a reasonable amount of time. Will the location suit your future lifestyle? Does it include the activities you enjoy now such as water skiing, hiking and so on? And does it have the activities you might enjoy in your later years such as golf, fly-fishing and other activities you might enjoy as a senior? Of course that only matters if you plan on using this particular vacation home after you’re retired.
2. What If I Have Kids and Pets?
If you have kids and pets and are buying a lakefront vacation property, there are several things you need to consider such as the potential dangers. For example, how close is the house to the water? Is there a fence around the property that would prevent a wandering toddler from drowning? Is the property in an area that is known for having alligators or other dangerous wildlife? And so on.
3. Do I Have Time To Perform the Necessary Maintenance?
If you have an extremely busy lifestyle, you need to consider that buying a vacation home is going to require regular maintenance and upkeep such as mowing the grass, tree trimming, pest control and so on. Therefore, if you don’t have the time to perform these tasks, you will have to pay someone to do it for you. That means you need to have enough money in your budget to cover such expenses and any other type of emergency expenses that might arise.
4. How Will a Second Home Affect My Taxes?
You will have to pay taxes on a second home just like you do for your primary residence. But there are some differences in the way a second home is taxed. And if you rent out that home for more than 15 or more days during the year, there will be even more paperwork than just filling out a few extra forms. Additionally, if you sell your second home, the proceeds will be taxed as a capital gain, but, of course, under some circumstances, you might be able to work around that. The bottom line is that it’s in your best interest to sit down with a real estate attorney about your particular situation to see exactly what you will need to do and how the second home scenario could affect your taxes.
Buying a lakefront property is a serious matter and one that shouldn’t be taken lightly. Therefore, you should take all the time you need to research the subject carefully, before you make any final decisions. This will enable you to make an educated decision about whether or not buying a lakefront property is right for you.
5. Is This Home in a Flood Zone?
The main concern for anyone buying a lakefront property is knowing whether or not it’s in a flood zone. You will need to check a flood zone map to determine if that’s the case for any home you are thinking about buying. If it is, and you’re financing that home, you will be required to purchase flood insurance and if the home is in a flood zone, the flood insurance costs could be significant even if that home hasn’t flooded in years or ever for that matter. Therefore, you will need to make sure you have enough money to cover all the extra necessary expenses that come with owing a lakefront property.
6. Is There a Lake Association?
Some lakefront homes will be part of a homeowner’s association or other organization that controls the lake area. If so, you could be required to join and to follow the rules they have in place. That means you will also need to check into what activities are and are not allowed. For example, if you planned on building a mother-in-law suite, or an outbuilding for your toys and the by-laws for that HOA don’t allow it, this could put you in a bind. So make sure you thoroughly understand and agree to all the HOA rules and regulations, before you commit to purchasing a lakefront property.
7. What About the Zoning and Regulations?
When living on the lake there are generally certain regulations and protections that govern what you can and can’t do on your property. Or at least within a certain number of feet from the lake that restrict building, clearing, planting and so on. Additionally, some lake municipalities will not allow you to install a dock and another might not allow speed boats among other things. Therefore, you will need to check the regulations for each lake you are considering before you make any final decisions.
Are There Any Other Questions I Should Ask?
Yes, there are some other questions you should ask, such as is the seller selling the dock along with the house or are they taking it with them? Who manages the lake weed? How busy is the lake during each season? Is there any nuisance wildlife present? Is the home serviced by a septic system or public sewer? If there is a private septic system, has it failed a state inspection? How much privacy will you have? Is the lakefront property you are considering on leased land? Does the lakefront property have any easements, right-of-ways or  any type of legal restrictions? Are there any betterment fees that haven’t been paid and so on.
2 Point Highlight
1. Buying a lakefront property can be challenging because there are so many things you need to consider and it’s very different from buying a non-lakefront home.
2. We are going to go over some of the questions you should ask when buying a lakefront property, as well as the questions you need to ask when buying a lakefront property as your vacation home.
