Investing in real estate can be a great way to expand your financial portfolio. Purchasing a second home in a scenic location not only increases your wealth, but it also provides you with a place to stay when you need to escape the stress of daily life. Many people opt to purchase vacation homes with waterfront property.
If you are looking to buy a second home near a scenic body of water, here are three tips that you can use to ensure you get the best deal possible.
1. Pay close attention to the inspection process.
A home inspection plays a critical role in determining the structural soundness of any property, but the inspection process is particularly important for properties that are located near water.
While a water-based landscape might be breathtaking, the moisture associated with waterfront property can take a toll on the buildings in these areas. Be sure that you hire an experienced inspector to check for signs of damage caused by high levels of humidity or salt content in the air.
2. Check the insurance requirements associated with the property.
Once you have located a waterfront property that you are interested in placing an offer on, you should check the insurance requirements for the property in question.
Since waterfront properties are located in close proximity to a large body of water, they are often associated with an increased risk of flooding. This could be prohibitive when it comes to securing an affordable homeowner's insurance policy. Be sure to check insurance requirements to determine how the cost of a waterfront policy will affect the monthly cost of maintaining your new purchase.
3. Look for hidden costs before placing an offer.
In order to ensure that you aren't surprised by hidden expenses after you purchase a waterfront property, you should research these hidden costs before placing an offer on a vacation home.
The water and sewer rates in waterfront areas can be higher than inland rates, and you may have to pay a monthly docking or boat slip fee in order to retain access to the water. Some waterfront properties are serviced by septic tanks or private wells, so you should factor the costs of maintaining these features into the total cost of the home as well.
Purchasing luxury waterfront property can be a great way to diversify your investment portfolio and enjoy a home with a scenic view. Be sure that you purchase the right waterfront home by investing in a thorough inspection, researching insurance requirements, and looking for hidden costs before placing an offer.