Tuesday, March 28, 2017

The Risks of Buying Homes by the Water



There are many benefits of buying and owning property by a river, lake, or the sea. However, there are also many risks to consider. Before you go ahead and get yourself an awesome new waterfront property, you should take the time to evaluate the risk vs. reward and figure out if the purchase is a genuinely wise decision for you. Oceanfronthhi.com recommends that you check out the common risks listed below and determine if this is the right fit.

Your Taxes Might be Higher

When you buy a home or property located near a body of water, you’re investing in a place with gorgeous views. It is a place for you to escape to from busy life in the city. Who doesn’t want to be able to wake up on a summer morning and go for a swim right outside their door? The problem here is that most tax analysts and assessment specialists keep raising the value of waterfront homes. After a few years of ownership, there is a chance that your next evaluation will be so high you just sell your home to get rid of the drain on your resources.

This rise in the assessment can be even higher if the general neighborhood is also becoming more popular, or if you have built more structures on the property like a boathouse or pool. With possible increases in assessment values of about 50% a year, you stand to lose a lot of money in the long run unless you fight the assessment. While many people say that this is just one of the costs of living in a gorgeous home like this, it is something to think long and hard about.

The Danger of Water Damage

Most waterfront properties are located near lakes and rivers. Depending on the terrain and the climate, there is a another threat presenting itself to you. There is a high chance that you will face severe flooding at least once during your ownership period. Since flood damage isn't a clause in most home insurance policies today, you may have to pay out of your own pocket to repair the damages caused by the flooding. If you live in an area with a history of floods, it is best to get this damage covered by your insurance when you buy the home, just in case.

Some people buy waterfront properties in areas where there have never been floods in the past. This doesn’t mean that water damage won’t be a problem. Water from the nearby lake can seep through the ground and to your foundations over time. In the course of a few years, there could be significant damage caused to the foundations and structures of your home. Before you buy a property, make sure you have a damage expert analyze the foundations to determine their integrity.

While it is true that homes by the water are exquisite properties with a lot of potential for a family home, they aren't without their own set of risks. Be sure that you are okay with all of these and more before purchasing your home.

Jen Brenner (c)

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