If you dream about spending your time in a vacation cabin right on the shore of your favorite lake, or coming home each evening to the view and the sounds of crashing surf just steps away from your home, is it reasonable to spend the money on your dream? Will the return if you decide to sell make the initial investment a wise move? What waterfront communities in the U.S. boast the best resale value?
Deciding on a Locale
While there are all kinds of waterfront properties, deciding on the best one for you may have you wondering if it’s a good idea at all to look for a place on the water. No one can accurately predict the weather, of course, but some areas are more prone than others to severe storms and the increasing incidence of “natural” disasters makes many buyers rethink their choice of properties.
Florida residents seem to be able to take hurricanes in stride, just as homeowners in the Midwest learn to deal with the threat of tornadoes. But, knowing that those things occur doesn’t make it any easier to accept the consequences if your own property suffers damage from a major storm, is flooded due to “unnatural” events, or suffers from coastal mudslides, tidal surges or environmental concerns.
Of course, the flip side is that “they’re not making waterfront property anymore.” Despite the vagaries of weather, the beauty and allure of the water is not likely to diminish. So, if you hold the dream of waterfront property, you will want to maximize your chances of making money on your investment as well as enjoying the life you live close to the water.
Locations with Consistently High Resale ValuesÂ
Some areas are notoriously expensive: The Hamptons of Long Island, Martha’s Vineyard and Nantucket, certain areas in Southern California including Malibu, Newport, Corona del Mar, the San Francisco Bay area, and some Florida cities, including Palm Beach and Naples are beyond the reach of most Americans. Additionally, there are pockets of high-priced properties along the Texas coast and in Great Lakes communities, as well as in Connecticut, Rhode Island, the Outer Banks and Georgia. The situation in these enclaves of old money and places frequented by “the rich and famous” is not likely to change, and prices will probably continue to escalate to unreal figures.
But what represents good value for normal folks?
The Rugged Northeast
The Maine coast — from Kennebunk and Ogunguit in Southern Maine; continuing northward to Cape Elizabeth and Falmouth-Foreside near Portland, through Midcoast Maine with towns like Rockland and Camden, to Down East destinations such as Bar Harbor — is exceedingly popular with both full-time residents and vacationers. There are reasonably priced cottages and condos as well as family compounds and historic sea captain’s homes. Coastal properties hold their value, no matter what their price point. Beaches are not a necessary feature of waterfront properties in Maine, nor is direct water access a priority. View, however, is a primary selling feature, and often the price is less determined by amenities and size than by the vista.
The Pacific Northwest
Property values in the Pacific Northwest have surged recently. Homes in the popular San Juan Islands of Puget Sound enjoy high resale prices, and benefit from a relatively mild climate, making them suitable for year-round living as well as superb vacation properties. Cities like Bellingham and Anacortes, further north along the Washington coast, are also seeing an influx of buyers. Waterfront properties are immensely popular and enjoy healthy appreciation.
The Texas Coast
Texas, with its generally favorable tax status for retirees, relatively low cost of living, and warm climate, is also a hot market today. Waterfront property along the coast represents good value and is likely to hold that value and appreciate substantially in coming years. Look in towns like Corpus Christi, Galveston, Freeport, Port Aransas and South Padre Island for your waterfront property. Or, if you want to be closer to the “big city,” there is charming Kemah, not far from Houston.
Mid-Atlantic Waterfront Properties
As the large crop of Baby Boomers nears retirement age, there has been a proliferation of golf course and waterfront communities spring up along the Atlantic coast from Georgia all the way north to Delaware. Many of them are upscale and designed to appeal to active adults looking for second homes that can become primary residences at some point in the future. They cater to affluent empty-nesters, are designed with ease of living and recreation in mind, and include enough amenities to almost assure that their values will soar over the next decade. If you are in the category of soon-to-be retired, or are interested in a place to spend winter away from snow and cold, these might be the perfect communities to consider now. Many of them are also suitable for sharing with children or they may become family compounds in the future.
No matter what you seek or where you look, it is wise to contact a local real estate professional for up-to-date information on prices and values.
2 Point Highlight
The Maine coast — from Kennebunk and Ogunguit in Southern Maine; continuing northward to Cape Elizabeth and Falmouth-Foreside near Portland, through Midcoast Maine with towns like Rockland and Camden, to Down East destinations such as Bar Harbor — is exceedingly popular with both full-time residents and vacationers.
Some mid-Atlantic coastal communities cater to affluent empty-nesters, are designed with ease of living and recreation in mind, and include enough amenities to almost assure that their values will soar over the next decade.
