Buying Lakefront Property is a great way to enjoy the lake’s beauty, but there are a few things to keep in mind before buying. Waterfront properties are subject to higher property taxes, may have a homeowners association or no disturb rules, and may come with a dock or pier. This article will help you navigate the waters and make the right decision.
Waterfront properties are subject to higher property taxes
Property taxes on waterfront properties tend to be higher than those on other types of property. This is because property lines on the water extend to a line known as the mean high water mark or an ordinary high water mark. These lines are often shared by condominium complexes or subdivisions whose common areas border the water.
In New Hampshire, property taxes are based on the value of the property. Waterfront properties are typically worth more than nearby homes, and waterfront residents therefore pay a higher share of the town’s expenses. Additionally, these property owners are more likely to be retirees or telecommuters, which give them increased influence over local government spending. As a result, they may ask their town for more money. And they might question the town’s spending habits in the past.
They are subject to a homeowner’s association
Lakefront property is often subject to a homeowner’s association, and a HOA manages the property. The HOA establishes rules, such as bylaws and CC&Rs, to govern the lakefront property. The homeowner’s association is a private organization with powers similar to private corporations. It is governed by state corporation laws and is usually formed by a developer to sell homes in a planned community.
They have a dock or pier
If your Lakefront property includes a dock or pier, there are a number of things you need to know. First of all, it is important to be aware of the legal requirements for piers and docks. Some states require a permit to dock a boat.
Having a dock on your property adds convenience and value. It is also a good investment, as it will enable you to spend more time on the water. You will also have to spend less time hauling your boat. A dock will make it easy to dock and unhook it. This will free up more of your time for exploring the natural beauty of your lakefront property.
They are a good investment
There are many benefits to buying a lakefront property. First of all, these properties typically have higher resale values than other types of property. They are also an excellent option if you like to go boating and water sports. Another plus is that lakefront properties do not require club fees or storage fees, which is great for those who enjoy the outdoors.
Another great benefit to owning a waterfront property is its excellent rental potential. Lakefront homes are in high demand from vacationers. Part-time rentals can help you cover the costs of owning a lakefront property. Additionally, websites like Airbnb have made it easy to rent out your property.
They have unique costs
Owning a lakefront property may offer you numerous benefits, but it also comes with unique costs. For one, you’ll need to pay higher insurance and maintenance costs. Also, your property will be more susceptible to natural disasters, such as floods and storms. But if you build a high-quality home, you should be alright. Compared to residential properties, lakefront properties tend to retain their value better, and if you invest wisely, your property will be a good investment.
Other unique costs related to lakefront properties are higher water rates and upkeep. These will be higher than those inland, and you’ll have to pay additional fees for septic tanks and wells. Additionally, you’ll have to pay for dock fees and boat storage.